JLR registers strong growth in retail sales in May 2013 - Angel Broking

Jaguar and Land Rover (JLR) registered a strong retail volume growth of 12.3% yoy (13.9% mom) to 32,477 units in May 2013, which was better-than-expected, driven by continued momentum in the recently launched models. Geographically, JLR volumes grew in every major region with Asia Pacific, Europe, China and North America registering growth of 41%, 16%, 11% and 10% yoy respectively. Total volumes ex. Evoque too registered a robust growth of 14.6% yoy (12.3% mom) driven by the strong growth in the newly launched Jaguar models.

Jaguar sales grew on the back of the growth in the XF model (32.3% yoy and 17.7% mom) led by the introduction of the Sportbrake, AWD and smaller engine variants. Jaguar sales were up in all the major markets with China, Asia Pacific, North America and Europe witnessing an impressive growth of 98%, 37%, 34% and 20% yoy respectively.

Land Rover sales grew at a healthy rate of 8% yoy (10.6% mom) to 26,303 units led by sustained growth in Freelander, Evoque and continuous ramp-up in New Range Rover. Land Rover witnessed strong growth in Asia Pacific and Europe with volumes growing by 42% and 15% yoy respectively. However, volumes in UK and China region remained flat during the month.

We retain our positive view on JLR and expect an ~13% volume CAGR over FY2013-15E, driven by continued momentum in the luxury vehicle market, coupled with the strong product launches that are lined up in FY2014 (expected to launch 8 new refreshes/models in FY2014) and the success of the model launched in 4QFY2013. We maintain our Buy rating on the stock with a sum-of-the-parts (SOTP) target price of Rs. 347.

Source : Equity Bulls

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