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MOSL: TATA MOTORS (Buy)-Changing DNA – being more frugal, agile and accountable

TATA MOTORS: Changing DNA – being more frugal, agile and accountable; Continued laser-sharp focus on cost and capex optimization

(TTMT IN, Mkt Cap USD14.4b, CMP INR285, TP INR471, 65% Upside, Buy)

 

Tata Motors (TTMT) hosted the ‘Investors Day’ for its India business, where the entire senior management discussed in length the business strategies and focus areas (Click here for the presentation). The message was very clear – a) DNA of the organization changing toward being frugal, agile and accountable, b) a sharp focus on competitive, consistent and cash-accretive growth in both businesses and c) continued laser-sharp focus on cost and capex optimization. Key highlights from the meet:

•  Transformation mentality is embedded in the organization, and momentum in this is evident. Big changes include a) a new mindset in the organization, b) a tremendous focus on results and c) people have learned to work in teams.
• ‘Turnaround 2.0’ is focused on delivering competitive, consistent and cash-accretive growth by a) winning customers and markets, b) building a profitable, fit-for-future product portfolio and c) driving operational efficiency and capital productivity.
• TTMT expects continued momentum in its domestic CV business after exhibiting a healthy progress in FY18. TTMT is aiming for ‘Winning decisively’ in the CV segment by a) strengthening product planning to address white space, b) leading in technology, c) developing products via modular platforms and d) enhancing customer engagement. Its objective is to deliver sustainable and profitable growth for customers by providing solutions to their pain points.