Buy Tata Motors Ltd., target Rs 647.0 : Motilal Oswal Securities

Motilal Oswal Securities has Buy call on Tata Motors Ltd. with a target price of Rs 647.0. The current market price of Tata Motors Ltd. is 557.95. Time period given by analyst is year, when Tata Motors Ltd. price can reach defined target. The stock trades at 13.3x/10.4x FY17/FY18E consolidated EPS. We raise our FY17E/18E EPS estimates by 8 %/3 %. We also increase our EV/EBITDA multiple for JLR to 4.5x (v/s 4x previously) to factor in a) stronger Cherry JV performance and b) favorable GBP not reflecting in FY18 estimates due to hedges. Maintain Buy with a TP of INR647 (FY18 SOTP-based) for ordinary shares and with a TP of Rs 452 for DVR ( ∼30 % discount to TP for ordinary shares).