Nomura reiterates buy on Tata Motors; target price at Rs 329

MUMBAI: Nomura has reiterated its buy rating on Tata Motors, while increasing its target price to Rs 329 from 326 after the lower-than-expected April sales figures for Jaguar and Land Rover.

""We raise our valuation for JLR to build in the impact of a weaker INR/GBP and minor changes to our estimates,"" Nomura analysts, Kapil Singh and Nishit Jalan, said in a note to clients.

Tata Motors shares fell 4.1% to end at Rs 260.10 on Friday. The broker said the recent correction offers an attractive entry point.

""We are raising our volume estimates slightly to 363,000 units for FY13F to factor in stronger Evoque volumes,"" the analysts said. ""We also maintain our view that IFRS margins for JLR will expand to 17.7% (16.4% in FY12F) in FY13F and 19% in Q4FY12F on volume leverage, cost reduction initiatives and mix,"" it said.