Outperform Tata Motors Ltd. with a target of Rs 680 – Credit Suisse

Credit Suisse maintains outperform on Tata Motors buy cuts target to Rs 680 from Rs 720. Forex benefit has played out, visible in 6% ASP increase. Product mix, losses on commodities, higher manufacturing expenses led to ~150 bp of miss. India weakness attributed to poor mix within M&HCV, higher M&HCV discounting in quarter. Reduce standalone estimates on demonetisation impact; Reducing JLR FY17 estimates on volumes and margins Tata Motors is a CS AxJ Focus List stock.