Buy Tata Motors Ltd., target Rs 550: HSBC

HSBC has a buy call on Tata Motors Ltd. with a target price of Rs 550. The current market price of Tata Motors Ltd. is 495.75. Time period given by analyst is year, when Tata Motors Ltd. price can reach defined target. The UK macro-led volume slowdown seems assured for JLR. The GBP weakness should more than offset this earnings impact. The product momentum supports industry high valuations and stock might face some near-term headwinds. JLR is trading at 4x EV/EBITDA, premium to BMW and Mercedes, but is sustainable.