Tata Motors plans to raise product prices by up to 1.5% - Angel Broking

According to media report, Tata Motors (TTMT) is planning to raise the prices of its commercial and passenger vehicles by 1% to 1.5% to mitigate the impact of rising input costs. The price hike comes on the expected lines and follows similar moves by the rival companies as the company aims to shield its operating margins by continuous cost control initiatives coupled with price increases. We believe that the price hikes of 1% to 1.5% will not completely offset the impact of input cost pressures given that the average discounts offered by the company to boost sales amid the slowdown has reached record levels.

We maintain our Accumulate rating on the stock with an SOTP target Price of Rs. 360.

Source : Equity Bulls

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