Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
RATING.....................................................................................Changed from BUY to HOLD
J L R , “ E v o q u e ” , s h o c k S t r e e t …
Tata Motors (TML) announced its Q3FY12 results, which followed a
similar pattern as the domestic performance remained muted while JLR
posted a robust revenue and margin performance. The consolidated
topline came above our estimates at ~| 45,199 crore (I-direct estimate:
~| 38,919 crore) reflecting a 44.6% YoY jump driven by strong JLR
revenues (up 41.5% YoY) to ~£3749 million while the standalone
business grew to ~| 13,338 crore (up 18.2% YoY). The consolidated
EBITDA margin expanded to 16.0% (I-direct estimate: 13.3%) indicating a
258 bps sequential jump. The margin improvement can be attributed to
strong other expense management, operating leverage and favourable
market mix even as standalone margins slipped 48 bps QoQ to 6.7%.
JLR’s margins surged to 20.1% (up 513 bps QoQ) with favourable
currency movement contributing ~£60 million on the same. The reported
PAT came ahead of our estimates at | 3405.5 crore (I-direct estimate:
| 2568 crore). However, adjusted for notional MTM losses on revaluation
of foreign loans, the PAT stood at | 3570 crore with JLR and standalone
PAT at £393 million and | 173.7 crore, respectively.
Highlights of the quarter
TML witnessed robust volume growth of 15.5% YoY in the domestic CV
segment despite challenging macros and an even better 33.2% YoY
growth in the domestic PV space. Domestic market share in the CV and
PV industry stood at 59.4% and 14.6%, respectively. JLR volumes rose to
86,322 units (up ~37% YoY) with ASPs rising ~3.1% YoY, with a
favourable geography mix (led by China; up 81% YoY) and better product
mix supported by growth in Range Rover & Range Rover Sport.
V a l u a t i o n
The strong broader market outperformance by the stock against common
market perception is in line with our long term conviction on the stock.
The strong volume/margin up-tick in JLR volumes has led to the same.
We remain positive on its outlook on a longer term basis. We have arrived
at an SOTP target price of | 316. We have changed our rating on the stock
from BUY to HOLD and been conservative on the possibility of multiples
re-rating. All portfolio investors can look at making fresh entries in the
stock post any significant correction while others can book partial profits.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
RATING.....................................................................................Changed from BUY to HOLD
J L R , “ E v o q u e ” , s h o c k S t r e e t …
Tata Motors (TML) announced its Q3FY12 results, which followed a
similar pattern as the domestic performance remained muted while JLR
posted a robust revenue and margin performance. The consolidated
topline came above our estimates at ~| 45,199 crore (I-direct estimate:
~| 38,919 crore) reflecting a 44.6% YoY jump driven by strong JLR
revenues (up 41.5% YoY) to ~£3749 million while the standalone
business grew to ~| 13,338 crore (up 18.2% YoY). The consolidated
EBITDA margin expanded to 16.0% (I-direct estimate: 13.3%) indicating a
258 bps sequential jump. The margin improvement can be attributed to
strong other expense management, operating leverage and favourable
market mix even as standalone margins slipped 48 bps QoQ to 6.7%.
JLR’s margins surged to 20.1% (up 513 bps QoQ) with favourable
currency movement contributing ~£60 million on the same. The reported
PAT came ahead of our estimates at | 3405.5 crore (I-direct estimate:
| 2568 crore). However, adjusted for notional MTM losses on revaluation
of foreign loans, the PAT stood at | 3570 crore with JLR and standalone
PAT at £393 million and | 173.7 crore, respectively.
Highlights of the quarter
TML witnessed robust volume growth of 15.5% YoY in the domestic CV
segment despite challenging macros and an even better 33.2% YoY
growth in the domestic PV space. Domestic market share in the CV and
PV industry stood at 59.4% and 14.6%, respectively. JLR volumes rose to
86,322 units (up ~37% YoY) with ASPs rising ~3.1% YoY, with a
favourable geography mix (led by China; up 81% YoY) and better product
mix supported by growth in Range Rover & Range Rover Sport.
V a l u a t i o n
The strong broader market outperformance by the stock against common
market perception is in line with our long term conviction on the stock.
The strong volume/margin up-tick in JLR volumes has led to the same.
We remain positive on its outlook on a longer term basis. We have arrived
at an SOTP target price of | 316. We have changed our rating on the stock
from BUY to HOLD and been conservative on the possibility of multiples
re-rating. All portfolio investors can look at making fresh entries in the
stock post any significant correction while others can book partial profits.
No comments:
Post a Comment