Nomura maintains 'Neutral' rating on Tata Motors, set target price of Rs 261

MUMBAI : Nomura has maintained a 'Neutral' rating on Tata Motors and set target price of Rs 261.

Global wholesales of Jaguar Land Rover in July-12 were at 26,921 vehicles, higher by 41% yoy. This is slightly below the estimate of 28,600 units and consensus expectations of around 27,800 units.

Volumes ex- Evoque sales have declined by 4% yoy. Evoque volumes were around 8,500 units. Jaguar sales for the month were 4,064 nos., down 7% yoy, while Land Rover sales were 22,857 nos., higher by 41% yoy.

"We believe that there could be minor negative reaction to stock price on these numbers" said a report by Nomura. Total JLR volumes for FYTD13 (Apr-July,12) are up 36% yoy to 110,373 units.

Company will have to do monthly volume run rate of around 32,000 units in the remaining 8 months to meet FY13F estimate of around 368,000 units.

Considering the increase in production in 2HFY13 due to the addition of a 3rd shift at its Halewood plant and launch of new Range Rover by end-CY12, the company should be able to meet volume estimates.