Tata Motors slips over 2% as JLR sales disappoint

NEW DELHI: Tata Motors Ltd slipped over 2 per cent on Monday after Jaguar Land Rover Ltd's ( JLR) May sales came below analysts' expectations.

At 01:00 p.m.; Tata Motors was trading 1.5 per cent lower at Rs 292.20. It had hit a low of Rs 289.05 and a high of Rs 297.50 in trade today.

Tata Motors' global sales continued to slide downwards in May 2013, down 14.9 per cent YoY to 81,783 units, led by the poor domestic performance in the passenger vehicle and medium and heavy commercial vehicle segments.

For the month of May 2013, Jaguar and Land Rover (JLR) recorded better-than expected growth of 3.7 per cent YoY (8.1% MoM) to 31,210 units driven by continued momentum in the recently launched models.

Rover sales however declined by 6.2 per cent YoY as the volumes were impacted due to the impending launch of the Range Rover Sport.

On a MoM basis, volumes grew by 2.6 per cent led by growth in Freelander, Evoque and continuous ramp-up in New Range Rover.

Angel Broking retains their positive view on JLR and expects an 13 per cent volume CAGR over FY2013-15E, driven by continued momentum in the luxury vehicle market, coupled with the strong product launches.

The brokerage firm expects JLR to launch 8 new refreshes/models in FY2014 and the success of the model launched in 4QFY2013.

Angel Broking maintains their 'Buy' rating on the stock with a sum-of-the-parts (SOTP) target price of Rs 347.