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MOSL: TATA MOTORS (Neutral)-JLR’s wholesales in line at 70.2k units in Mar’19

Tata Motors: JLR’s wholesales in line at 70.2k units in Mar’19; Jaguar volumes down 0.3% YoY, LR volumes down 11% YoY

(TTMT IN, Mkt Cap USD9.8b, CMP INR216, TP INR195, 10% Downside, Neutral)

 

• JLR’s wholesale volumes declined 8% YoY (+41% MoM) to 70.2k units (in-line) in Mar’19, including China JV volumes of 4.8k units (-32% YoY).
• Jaguar volumes declined 0.3% YoY to 21k units (in-line), while Land Rover (LR) volumes were down 10.9% YoY to 49.2k units (in-line).
• JLR’s retail volumes declined 8% YoY in Mar’19, led by lower sales in China (-42.5% YoY) and the US (-8% YoY), partly offset by higher UK (+7.5%) and Europe (+1.1%) sales.
• Jaguar’s retail volume declined 0.2% YoY, led by a substantial volumes decline across models, barring E-pace (+32%) and I-Pace.
• LR’s retail volumes declined 11.4% YoY, as growth in Range Rover Velar (+5% YoY) was more than diluted by a decline across other models.
• Mr Felix Brautigam, Jaguar Land Rover, Chief Commercial Officer said, “Despite a challenging time for us and the automotive industry, we were able to deliver growth in three of our five regions. In North America, the UK and Overseas we posted solid growth on the back of strong demand for our exciting product line-up, achieving record sales and outpacing industry trends in many markets.”
• The stock trades at 17.7x/13.8x FY20/21 consol. EPS. Maintain Neutral with a target price of INR195 (Mar’21 SOTP-based).