JLR sales momentum continues in April 2013 - Angel Broking

Jaguar and Land Rover (JLR) registered a strong retail volume growth of 12.2% yoy to 28,503 units in April 2013 driven by continued momentum in the recently launched models. While UK and Asia Pacific regions recorded strong growth of 32% and 37% yoy respectively; North America and Europe posted modest growth of 6% and 2% yoy respectively. Jaguar and Land Rover sales witnessed a growth of 12.3% and 12.1% yoy respectively in April 2013. Total volumes ex-Evoque posted a robust growth of 17.1% yoy driven by the dispatches of the new Range Rover and smaller engine and AWD variants of XF.

Jaguar sales grew on the back of the growth in the XF model (25.7% yoy) led by the introduction of the Sportbrake, AWD and smaller engine variants. Jaguar sales were up in all the major markets with UK, China, and Australia witnessing a growth of 34%, 25% and 78% yoy respectively.

Land Rover sales were driven primarily by the new Range Rover. Land Rover witnessed sales growth across all the major regions with Asia Pacific, UK and China reporting volume growth of 39%, 31% and 8% yoy respectively.

We retain our positive view on JLR and expect the company to maintain its growth momentum driven by the new launches - Range Rover, Range Rover Sport, Jaguar XF Sportbrake and AWD and smaller engine variants of XF and XJ models. We maintain our Buy rating on the stock with an SOTP based target price of Rs. 324.

Source : Equity Bulls

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