Equity Analysis /
India

IN : Tata Motors - JLR’s woes prolong with high Europe focus

    Pramod Amthe
    Hitesh Thakurani
    CGS-CIMB
    25 March 2022
    Published by

    Higher JLR exposure to Europe and sales volume challenges guided by premium car-maker peers led us to cut our FY23F-24FJLR PAT by 14-19%. Car division continues to impress, but high fuel price-sensitive commercial vehicle demand concerns led us to our FY23F India entity net loss projection. Reiterate Reduce rating with a lower SOTP-based TP of Rs371 as our EPS estimates are sharply below consensus and P/BV valuation is rich at +1SD.