JLR sustains its growth momentum in February 2014 - Angel Broking

Jaguar and Land Rover (JLR) sustained its growth momentum in February, with retail sales surging by 13.5% yoy to 30,487 units. The overall performance continues to be driven by the success of the new models and strong growth in China, where volumes grew by an impressive 44%. North America (up 12%), Asia Pacific region (up 16%) and Rest of the World (up 16%) markets too witnessed robust growth during the month. Sales in the European region (including UK) though continued its sluggish trend.

Jaguar volumes increased strongly by 15.3% yoy to 5,300 units, led by continued growth in the XF and XJ models. Geographically, Jaguar posted an impressive growth in China (up 41% yoy) and North America (up 35% yoy); however, sales in the UK and Europe declined owing to model launch activity in the corresponding month of 2013. Land Rover too grew by 13.1% yoy to 25,187 units, driven by continued ramp-up of the new Range Rover and the new Range Rover Sport. Geographically, the growth was strong across China and Asia Pacific region which clocked a strong growth of 44% and 20% yoy respectively.

We expect headwinds in the standalone business to continue in the near term due to weak macro-economic environment which is expected to continue impacting domestic volumes. Nevertheless, we expect JLR to sustain its strong performance driven by continued momentum in the global luxury vehicle market and aided further by the strong product launch pipeline and the success of the newly launched models. We retain our Buy rating on Tata Motors with an SOTP based target price of Rs. 451.

Source : Equity Bulls

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