Buy Tata Motors, target Rs 545: CLSA

CLSA maintains a buy call on Tata Motors with a 12-month target price of Rs 545. If the UK votes for Brexit, it is likely to be negative for JLR. The potential UK slowdown and trade tariffs could hurt JLR.

JLR derives 24 per cent of volumes from Europe, and sources say that 35-40% of components also come from Europe.

The import tariffs may apply on both legs post-Brexit, which would adversely impact JLR, said the CLSA report. A potentially weaker GBP post-Brexit could provide some cushion.