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Stock Analysis, IPO, Mutual Funds, Bonds & More

Hold Tata Motors, target Rs 314: Edelweiss

Hold Tata Motors Ltd. at a price target of Rs 314.0 .|
Updated: Jun 29, 2018, 03.34 PM IST
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Edelweiss has a hold call on Tata Motors Ltd. with a target price of Rs 314. The current market price of Tata Motors Ltd. is Rs 269.25. Time period given by the brokerage is a year when Tata Motors Ltd. price can reach defined target. Tata Motors Ltd., incorporated in 1945, is a largecap company with a market cap of Rs 76197.13 crore.

Investment rationale by Edelweiss

Management commentary during JLR’s investor day reaffirms our core concern on FCF due to the higher-than-expected capex and lower volumes. Moreover, we perceive normalising margin in China as an incremental negative. On the positive front, JLR has effectively bridged he technological gap with peers over the past eight years, enabling it to be at the fore front of electrification and adopt flexible manufacturing. While we prune FY20E EPS ~3% to INR37.6, our SOTP-based TP is cut 10%to INR314 (INR351 earlier) to factor in the higher capex. Maintain ‘HOLD’.
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Disclaimer: This recommendation is analyst's own and does not represent those of & Please consult your financial advisor before taking any position in the stock/s mentioned.

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