| 11. Insight technical 12/1/2009 1:04:25 PM IST |
Price @BSE - Rs 685.20 when posted |
Tata Motors Ltd
SELL Price.Rs630 Target Price Rs415
Mixed bag, Maintain SELL
Tata Motors` (TML) 2QFY10 consolidated results were mixed bag. While net sales and
EBIDTA were in line with expectation, net profits were below expectation. JLR
reported below expected EBIDTA (£42 mn vs expectation of £51 mn), however, other
subsidiaries adequately compensated for the same. JLR continues to capitalize ~£100
mn pound of R&D spend per quarter. TML has provided for (in reserves) actuarial loss
of Rs7.4 bn for JLR pension revaluations.
We expect JLR to remain FCF negative despite factoring in a strong turnaround in
profitability. We expect JLR to report sales of ~167000 units and ~185000 units in
FY10 and FY11 respectively. At the current juncture, we do not expect a strong
recovery in the US/EU (for details refer to our note ‘Tata Motors – Expecting too much
too soon`)
We continue to have concerns with respect to the balance sheet of the company (net
D/E-ex financing business of 3x, ROCE of 11% despite a stronger ROE of 33%, P/B of
3.8x). Hence we are not comfortable giving a higher valuation multiple to stock. We
continue to value the stock at discount to other automobile stocks.
We have valued TML standalone at target EV/EBIDTA multiple of the standalone
business to 7x (20% discount to M&M). We have valued JLR at 5x EV/EBIDTA and
other subsidiaries (ex TMFSL) at 20% discount to TML. We maintain our SELL rating
on the stock with a target price of Rs 415 (upgraded by 4%).
JLR – Wholesale billing improve QoQ, retail sales decline QoQ
Wholesale billings registered 23.2% QoQ growth to 44,300 units due to inventory filling
exercise during the quarter. Retails sales registered marginal decline of 1% QoQ to 46,800
units. For 2HFY10, we expect JLR to report sales of ~86,000 units vs ~81,000 units in
1HFY10.
Valuation and View
We expect JLR to remain FCF negative despite factoring in a strong turnaround in profitability. We expect JLR to report sales of ~167000 units and ~185000 units in FY10 and
FY11 respectively. At the current juncture, we do not expect a strong recovery in the US/EU (for details refer to our note ‘Tata Motors – Expecting too much too soon`)
We continue to have concerns with respect to the balance sheet of the company (net D/E-ex financing business of 3x, ROCE of 11% despite a stronger ROE of 38%, P/B of 3.8x). Hence we are not comfortable giving a higher valuation multiple to stock. We continue to value the stock at discount to other automobile stocks.
We have valued TML standalone at target EV/EBIDTA multiple of the standalone business to 7x (20% discount to M&M). We have valued JLR at 5x EV/EBIDTA and other subsidiaries
(ex TMFSL) at 20% discount to TML. We maintain our SELL rating on the stock with a target price of Rs 415 (upgraded by 4%). |
|
| 10. Insight technical 6/15/2009 3:03:49 PM IST |
Price @BSE - Rs 0.00
when posted |
Tata Motors (Rs. 357)
The stock has hit higher highs consistently in the last few
months along with short consolidation phases. The recent
decline does not look like a correction but potentially a
short-term reversal.
Multiple bearish “Engulfing” pattern can be spotted on the
daily chart while the weekly indicator studies are extremely overbought. A break below the support of 352 leads to an extended correction.
STRATEGY: Sell on a move below 352 with a closing stop
loss above 383 for a short-term target of 300 and 283.
Support: 352 and 328 Resistance: 374 and 383 |
|
| 9. Insight technical 6/10/2009 1:12:04 PM IST |
Price @BSE - Rs 0.00
when posted |
Buy only in the region 365-369 with a stop loss
below 356 for an intra-day target of 386.
|
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| 8. sumit kumar 3/12/2009 12:21:04 AM IST |
Price @BSE - Rs 0 when posted |
| i just want to invest about 1.2 lacs INR in tata motors of BSE, mumbai...i want to know the lower level of last 52 weeks of it |
|
| 7. News 11/7/2008 9:31:27 AM IST |
Price @BSE - Rs 0 when posted |
| Tata Motors is closing its commercial vehicle plant in Jamshedpur for three days starting today to avoid a build-up of inventory. The plant would be shut from 6 November 2008 to 8 November 2008, the company said in a statement. |
|
| 6. Rakesh 3/27/2008 7:50:17 AM IST |
Price @BSE -Rs 679.4 when posted |
Tata Motors Ltd has informed BSE that the Board of Directors of the Company at its meeting held on March 11, 2008, has in principle approved, subject to other approvals as may be required, raising of additional long term resources upto Rs 4,000 crores by issue of appropriate securities in the foreign and / or domestic market in one or more tranches on terms to be decided by the Board / Committee of Directors in due course as also the consequent increase in the Authorised Capital of the Company.
The Company has major growth plans for expanding its position in the domestic and global markets in both the commercial vehicle and passenger vehicle business. This will be achieved by upgrading and enhancing the Company's product portfolio, expanding manufacturing facilities in India and strategic acquisitions / alliances in India and abroad. Whilst this may require incurrence of expenditure for organic growth over the next 3-4 years, the acquisition opportunities will have to be financed upfront. The said funds are being raised to part-finance overall funding requirements to meet some of the strategic plan.
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| 5. Radha 3/6/2008 1:58:38 AM IST |
Price @BSE -Rs 702.65 when posted |
Tata Motors Ltd., India's biggest truckmaker, plans to borrow $3 billion from nine banks to finance the purchase of Ford Motor Co.'s Jaguar and Land Rover luxury-car brands, according to three people with direct knowledge of the deal.
The company plans to raise the money from banks including Citigroup Inc. and JPMorgan Chase & Co., said the people, who declined to be identified because the information isn't public.
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| 4. Niki 1/10/2008 8:50:24 AM IST |
Price @BSE: 770.45 Rs when posted |
--lakh car by Tata Motors--
The car will sell. Like hot cake. There is no doubt
about it. Point is how much profit per car will-can
telco make and overall how much will they make on how
much investment.There is a huge market for such low priced vehicles.I hope they succeed.
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| 3. Raja 1/9/2008 8:17:39 PM IST |
Price @BSE: 770.45 Rs when posted |
Tata motors has been a sensex underperformer for over 6 months. As of
January 8, 2008, its price is 774 and its PE is only around 14. Its
market capitalisation is close to 30k crores.
It expects to sell 1 million 1lakh cars PER YEAR the next few years,
translating to about 10,000 Cr. in revenues per year. Now i'm not sure
what the exact margin is but I imagine that the bottom line is about
20% - which would equaly to an additional 2000 crs p.a.. Now if the
profits of the stock was priced in, then the market capitalisation
only because of the 1 lakh car would be 2000x14 = 28,000 cr. That
would mean that the value of the remaining business is only 2000cr -
which is ABSOLUTELY RIDICULOUS!!
So get in now! my price target is Rs. 1200 with a 3 month time frame. |
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| 2. Rakesh 1/3/2008 7:21:01 PM IST |
Price @BSE: 794.25 Rs when posted |
Tata Moters: Rs.794/- it appears that Tata Moters has finally come our of correction from last two years and during which it has former a flat and now appears to have started its up move. so now we can expect a good up move in the stock. till now it was an under performer and
now it appears that it will out perform the market. Stop Loss:700/- |
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| 1. StockNews 1/3/2008 6:39:08 PM IST |
Price @BSE: 794.25 Rs when posted |
| Tata Motors said on Wednesday, 2 January 2007, its vehicle sales fell 2.2% in December 2007 to 47,678 units from 48,757 units a year earlier. Sales of commercial vehicles rose 1.7% to 28,661 units from 28,179 units, while sales of passenger vehicles dropped 13% to 14,316 units. Exports rose 15.7% to 4,701 units from 4,063 units. |
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