MOSL: TATA MOTORS (Neutral)-JLR Turnaround & transformation plan in place needs flawless execution
tata Motors: JLR Turnaround & transformation plan in place needs flawless execution, China recovery and supportive macros
(TTMT IN, Mkt Cap USD7.8b, CMP INR173, TP INR195, 12% Upside, Neutral)
Jaguar Land Rover hosted 2nd edition of its Investors Day, where entire senior management of JLR presented on their strategy and focus areas for the sustainable turnaround (). While JLR management reiterated its turnaround plan that hinged upon volume/pricing recovery, cost/margin improvement and controlling investment, it shared few details on cost control initiatives undertaken by them. However, it didn’t share details on announcement of alliance with BMW for electronic drive units (EDU). Key highlights from the meet:
Near term challenges remain, but strategic priorities intact
- Macro environment is challenging as industry volumes in all its key markets have declined. China particularly has been bad, as for the first time in 25 years Chinese auto volumes have declined (~10%). However, JLR has gained market share in FY19 in four of the five markets (except China).
- However, it expects Premium vehicle volumes to grow of 2.4% CAGR over FY20-25, driven by ~4.5% CAGR in China.
Tata Motors is an automobile company, engaged in the manufacture and sale of commercial and passenger vehicles primarily in India. Co. provides cars, utility vehicles, trucks, buses, and defense vehicles, as well as develops electric and hybrid vehicles for personal and public transportation. In addition, Co. is engaged in the provision of engineering and automotive applications, as well as machine tools and factory automation applications; construction equipment manufacturing; automotive vehicle components manufacturing, among others. Co. markets its vehicles in Europe, Africa, the Middle East, South East Asia, South Asia, and South America.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.