Tata Motors: JLR retail volumes in May'13 up 12%/14% YoY/MoM; CMP: Rs283; TP: Rs332;BUY - IDBI Capital

- JLR retail volumes for May'13 were up 12%/14% YoY/MoM to 32,477 units. Jaguar volumes were up 36%/31% to 6,174 units, while Land Rover volumes were up 8%/11% to 26,303 units. Growth was driven across most geographies with Europe, US, China and Asia Pacific leading incremental volumes.

- Model wise growth in Jaguar was led by XF (32% growth YoY), while F-Type clocked 688 units. In case of LR, new RR and Evoque led volume growth, while new RR Sport is yet to contribute meaningfully to numbers.

- Wholesale numbers will be out tomorrow mostly, which should also be healthy. IDBI Capital expect volume momentum at JLR to improve in the coming months led by higher volumes from new RR Sport (as it gets rolled out across geographies) and F-Type.

- Reiterate BUY on Tata Motors with a target price of Rs332.

Source : Equity Bulls

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