Tata Motors global sales down 7% yoy in April 2013 - Angel Broking

Tata Motors (TTMT) global sales continued its downward trend in April 2013, down 7% yoy to 81,241 units, led by continued weakness in the domestic passenger vehicle (down 46.6% yoy) segment. During April 2013, the global commercial vehicle sales posted a growth of 5.2% yoy on a low base of last year. However, the global passenger vehicle volumes fell significantly by 16.4% yoy led by weak performance in the domestic passenger vehicle segment. Nevertheless, Jaguar and Land Rover (JLR) continued its momentum posting a strong volume growth of 14.8% yoy to 28,874 units driven largely by the new launches.

Jaguar sales grew strongly by 48% yoy to 5,334 units on the back of the growth in the XF model due to the introduction of the Sportbrake, AWD and smaller engine variants. Land Rover sales on the other hand grew by 9.3% yoy primarily led by the new Range Rover. 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.

Due to the sharp run-up in the stock price over the last one month (up ~15%), we recommend an Accumulate rating on the stock. Our SOTP target price for the company works out to Rs. 324.

Source : Equity Bulls

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