Buy Tata Motors, target Rs 503: Prabhudas Lilladher

Prabhudas Lilladher maintains a buy rating on Tata Motors with a 12-month target price of Rs 503. "JLR's product launches in FY16 have materialised into good volumes and we expect FY17 would reap the benefits from these launches," said the brokerage note.

Over FY17-18, four new products have been planned by JLR, of which, the new Discovery and new Range Rover appear most interesting. India operations would witness positives from the improved M&H CV demand and recovery from lows of LCV demand.

"We believe that the car portfolio is likely to be an underperformer. Near-term concerns also arise from the possibility of Brexit and its possible adverse implications for JLR, although the exact quantum cannot be gauged by the company," added the report.