Tata Motors gains over 3% on strong JLR sales for May

NEW DELHI: Tata Motors Ltd rallied over 3 per cent in morning trade on Friday, after JLR registers strong growth in retail sales in May 2013.

At 10:00 a.m.; Tata Motors was trading 3.1 per cent higher at Rs 291.15. It hit a low of Rs 287.25 and a low of Rs 292.40 in trade today.

Sales of Jaguar Land Rover Automotive Plc, the UK-based subsidiary of Tata Motors Ltd registered a strong retail volume growth of 12.3 per cent YoY and 13.9 per cent MoM to 32,477 units in May 2013, which was better-than-expected, driven by continued momentum in the recently launched models.

“Geographically, JLR volumes grew in every major region with Asia Pacific, Europe, China and North America registering growth of 41%, 16%, 11% and 10% yoy respectively,” Angel Broking said in a note.

Evoque too registered a robust growth of 14.6 per cent YoY (12.3% MoM) driven by the strong growth in the newly launched Jaguar models.

Jaguar sales were up in all the major markets with China , Asia Pacific, North America and Europe witnessing an impressive growth of 98%, 37%, 34% and 20% YoY respectively.

“We retain our positive view on JLR and expect a 13 per cent volume CAGR over FY2013-15E, driven by continued momentum in the luxury vehicle market, coupled with the strong product launches,” said the Angel Broking note.

The brokerage firm maintains their ‘Buy’ rating on the stock with a sum-of-the-parts (SOTP) target price of Rs 347.