Angel Broking- Tata Motors – Global sales grow 14% in February 2011

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Tata Motors – Global sales grow 14% in February 2011

Tata Motors reported 14% yoy (3.4% mom) growth in its global sales volumes for February
2011 to 102,411 units. Growth performance during the month was led by 10% and 18%
yoy growth in the commercial and passenger vehicle segments, respectively. Sales of luxury
brands Jaguar and Land Rover (JLR) continued their momentum during the month, posting
strong 26% yoy growth (6.3% mom) to 21,653 units.  Jaguar sales came in slightly lower
than expected, while  Land Rover sales were better than our estimates during February
2011.  Jaguar sales declined by 2.4% yoy (up 5.1% mom) to 3,213 units, whereas  Land
Rover sales gained 32.6% yoy (6.5% mom) to 18,440 units. We expect JLR to maintain its
volume growth going ahead, owing to the sustained momentum in the luxury car market
globally, specifically in the US and China. We maintain our Buy recommendation on the
stock with an SOTP Target Price of `1,384.