Tata Motors - Jaguar Land Rover - Monthly sales update - December 2012 ... - Equity Bulls

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	Jaguar and Land Rover (JLR) posted a modest wholesale volume growth of 4.2% yoy to 32,282 units in December 2012, which was slightly lower than our estimates of 35,000 units. On a sequential basis, volumes declined 6.8% yoy primarily due to Christmas related holidays in December. Jaguar sales posted a strong growth of 15.2% yoy (down 13% mom) led by the dispatches of the recently introduced all-wheel-drive XF and XJ and smaller engine versions of XF and XJ. Land Rover sales on the other hand, posted a muted growth of 2.2% yoy (down 5.5% mom) to 26,838 units. The sales were impacted mainly due to the plant closure in December on account of Christmas holidays. Consequently, Evoque volumes were down ~10% on a mom basis to ~10,000 units. We expect the volume performance to improve in 4QFY2013 led by ramp-up at the Halewood plant which would boost the production of Evoque and Freelander. Further dispatches of the new Range Rover and smaller engine and all-wheel-drive variants of XF and XJ will also aid volume growth going ahead. Outlook and valuation: We retain our positive view on JLR and expect a 13-14% volume CAGR over FY2012-14E driven by Evoque and new product launches (Range Rover, Range Rover Sport, Jaguar XF Sportbrake and all-wheel drive and smaller engine options in the XF and XJ models). Further, a favorable market and product-mix and stable commodity prices will help mitigate raw-material cost pressures. We recommend an Accumulate rating on Tata Motors with a sum-of-the-parts (SOTP) target price of Rs.337.		Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.
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