Brokers' call: HSBC eyes Rs 358 for Tata Motors

HSBC has reiterated its ‘Overweight’ rating on Tata Motors with a target price of Rs 358. A macro slowdown in China and consequent impact on the luxury market is a key concern for JLR/Tata Motors investors. “We believe JLR is well-positioned to continue to outperform the market.

Firstly, the company's product portfolio is expanding (something which has been highlighted in the past and well acknowledged in the market” HSBC said in a report.

China and JLR – both showing signs of improvement and secondly the company is also expanding its reach in China. “Our analysis of the BMW to JLR dealership ratio across China suggests that JLR currently underserves more than 40% of the addressable market compared to competition such as BMW. Hence, we believe JLR can outperform the market in the near to medium term just by expanding its dealership,” the report added.