report (68)

7/26/2019 report (68)

1/13

RESULTS REVIEW 4QFY16 31 MAY 2016

Tata MotorsBUY

HDFC securities Institutional Research is also available on Bloomberg HSLB & Thomson Reuters

JLR at full throttle; India steadyJLRs 4QFY16 topline at GBP 6,594mn (+13% YoY)

beat expectations as net ASP rose 5% QoQ despite a

weaker regional/model mix. Adjusted for one-offs,

EBITDA margin at 16.2% (+180bps QoQ) positively

surprised with gross margin expansion (+240bps QoQ

to 41.9%). The China JVs profit per vehicle more

than doubled QoQ. APAT at GBP 580mn (+92% YoY)

beat estimates. The India business, too, stood its

ground with EBITDA of Rs 10.2bn (+241% YoY).

In our recent note(link),we highlighted JLRs modestmarket share (~4/10% for Jaguar/LR) and strong

model pipeline. A strong 4Q operational beat raises

hopes of EBITDA margins trending in the upper range

(14-16%), aided by oplev and platform consolidation

benefits. The India business is recovering with strong

CV growth

7/26/2019 report (68)

2/13

TATA MOTORS: RESULT REVIEW 4QFY16

Page | 2

Quarterly Financials Snapshot (Consolidated)

(Rs mn) 4QFY16 4QFY15 YoY (%) 3QFY16 QoQ (%)

Net Sales 806,844 677,777 19.0 722,564 11.7

Material Expenses 464,923 405,185 14.7 435,890 6.7

Employee Expenses 77,702 67,831 14.6 74,380 4.5Other Operating Expenses 133,197 112,259 18.7 109,930 21.2

EBITDA 131,022 92,503 41.6 102,365 28.0

Depreciation 44,239 38,568 14.7 43,391 2.0

EBIT 86,783 53,935 60.9 58,974 47.2

Other Income 2,486 2,452 1.4 1,806 37.7

Interest Cost 12,552 18,946 (33.7) 10,915 15.0

Product Development Cost 10,735 8,120 32.2 8,565 25.3

PBT 65,982 29,322 125.0 41,300 59.8

Tax 13,546 10,236 32.3 6,513 108.0

RPAT 52,436 19,086 174.7 34,787 50.7

Minority Interest 383 339 13.0 204 87.5

Profit/(Loss)In Associate Companies 89 30 201.4 36 150.4

APAT after MI 52,142 18,777 177.7 34,618 50.6

EO Items (Adj For Tax) 371 1,612 (77.0) (457) (181.3)

RPAT 51,771 17,165 201.6 35,075 47.6

Source: Company, HDFC sec Inst Research

Margin Analysis (Consolidated)4QFY16 4QFY15 YoY (bps) 3QFY16 QoQ (bps)

Material Expenses As % Of Net Sales 57.6 59.8 (216) 60.3 (270)

Employee Expenses As % Of Net Sales 9.6 10.0 (38) 10.3 (66)

Other Expenses As % Of Net Sales 16.5 16.6 (5) 15.2 129

EBITDA Margin (%) 16.2 13.6 259 14.2 207

Net Profit Margin (%) 20.5 34.9 (1,438) 15.8 476

Tax Rate (%) 6.4 2.5 388 4.9 156


Consolidated topline was 4%

ahead of expectations

EBITDA margin improvement

of 200bps QoQ was largely

driven by JLRs 180bps QoQ

margin expansion

Despite adjusting for

provision owing to Takata

airbag related recalls, otherexpenses/sales rose 130bps

QoQ

APAT at Rs 52.1bn was ahead

on strong operational beat,

lower-than-expected

depreciation and higher otherincome

7/26/2019 report (68)

3/13

TATA MOTORS : RESULT REVIEW 4QFY16

Page | 3

Quarterly Financials Snapshot (Standalone)

(Rs mn) 4QFY16 4QFY15 YoY (%) 3QFY16 QoQ (%)

CV (Domestic, in units) 99,487 84,126 18.3 78,294 27.1

PV (Domestic, in units) 30,144 41,853 (28.0) 31,384 (4.0)

Exports (in units) 17,135 13,291 28.9 12,699 34.9Total Volumes (in units) 1,46,766 1,39,270 5.4 1,22,377 19.9

Net Sales 1,25,698 1,07,858 16.5 1,00,006 25.7

Material Expenses 84,891 77,050 10.2 71,596 18.6

Employee Expenses 7,445 8,362 (11.0) 7,811 (4.7)

Other Operating Expenses 23,144 19,453 19.0 14,913 55.2

EBITDA 10,217 2,993 241.3 5,686 79.7

Depreciation 6,140 8,233 (25.4) 6,054 1.4

EBIT 4,077 (5,240) (177.8) (368) (1,208.2)

Other Income 1,297 831 56.1 4,733 (72.6)Interest Cost 3,438 4,709 (27.0) 3,456 (0.5)

Product Development Cost 1,254 1,403 (10.6) 1,073 16.9

PBT 682 (10,521) (106.5) (164) (515.2)

Tax (953) 78 (1,317.5) (24) 3,922.4

APAT pre MI 1,635 (10,600) (115.4) (141) (1,263.2)

Minority Interest - - - - -

APAT after MI 1,635 (10,600) (115.4) (141) (1,263.2)

EO Items (Adj For Tax) (3,015) 1,043 (389.1) 1,868 (261.4)

RPAT 4,650 (11,643) (139.9) (2,009) (331.5)

Adj EPS 0.5 (3.3) (115.6) (0.0) (1,263.2)


Margin Analysis (Standalone)

4QFY16 4QFY15 YoY (bps) 3QFY16 QoQ (bps)

Material Expenses % Net Sales 67.5 71.4 (390) 71.6 (406)

Employee Expenses % Net Sales 5.9 7.8 (183) 7.8 (189)

Other Operating Expenses % Net Sales 18.4 18.0 114.7 14.9 350

EBITDA Margin (%) 8.1 2.8 535 5.7 244

Tax Rate (%) (139.8) (0.7) (13,902) 14.4 (15,418)

APAT Margin (%) 1.3 (9.8) 1,113 (0.1) 144Source: Company, HDFC sec Inst Research

Standalone topline growth of

18% YoY was marginally

lower than estimates on

lower-than-expected rise innet ASPs (~5% QoQ)

EBITDA margin improved

240bps QoQ led by gross

margins expansion of 400 bps

QoQ, partially offset by higher

other expenses

The outlook for thestandalone business is

improving with continued

growth in MHCVs, recovery in

LCV demand and a good

response for Tiago (~20k

bookings)

The company hopes toturnaround its PV business

with two new launches every

year till 2020

7/26/2019 report (68)

4/13


Page | 4

Quarterly Financials Snapshot (JLR - IFRS)

In GBP mn 4QFY16 4QFY15 YoY (%) 3QFY16 QoQ (%)

Retail Volumes (000 units) 158.8 126.4 25.7 137.7 15.4

Wholesale VolumesEx-CJLR (000 units) 149.9 125.2 19.8 137.6 8.9

Revenue 6,594 5,826 13.2 5,781 14.1

Material Expenses 3,828 3,417 12.0 3,496 9.5Employee Expenses 648 550 17.8 582 11.3

Other Operating Expenses 1,347 1,151 17.0 1,192 13.0

Product Development Expense (298) (308) (3.2) (323) (7.7)

EBITDA (Adjusted) 1,069 1,016 5.2 834 28.2

Interest Cost 13 92 (85.9) 10 30.0

Depreciation 378 308 22.7 357 5.9

Debt/Unrealised MTM Loss/(Gain) 42 220 (80.9) 20 110.0

Share Of Profit/(Loss) From JV 49 - - 22 122.7

PBT 685 396 73.0 469 46.1

Exceptional Item (108) - - 30 (460.0)

Tax 105 94 11.7 59 78.0

APAT 580 302 92.1 410 41.5

RPAT 472 302 56.3 440 7.3


Margin Analysis (JLRIFRS)

4QFY16 4QFY15 YoY (bps) 3QFY16 QoQ (bps)

Material Expenses As % Of Net Sales 58.1 58.7 (59.8) 60.5 (242.1)

Employee Expenses As % Of Net Sales 9.8 9.4 38.7 10.1 (24.0)

Other Expenses As % Of Net Sales 20.4 19.8 67.1 20.6 (19.2)

EBITDA Margin (%) 16.2 17.4 (122.7) 14.4 178.5

Net Profit Margin (%) 8.8 5.2 361.2 7.1 170.4

Tax Rate (%) 15.3 23.7 (840.9) 12.6 274.9


JLRs topline was above

expectations owing to net

ASP rise on sequential basis

Gross margin improved QoQ

owing to lower commodity

prices and favourable variant

mix for newly launched

models

JLRs EBITDA margin was

above estimate even while

regional/model mix wasweaker and FX impact was

neutral

China JV profits more than

doubled QoQ despite flat

volumes

JLR generated strong FCF of

GBP 1393mn in 4Qwithimprovement in working

capital

7/26/2019 report (68)

5/13


Page | 5

JLR: Key Financial Highlights / Model Assumptions

in Mn FY14 FY15 FY16 FY17E FY18E

Revenue 19,386 21,866 22,208 24,666 27,138

% YoY 22.8 12.8 1.6 11.1 10.0

Wholesales Volumes Incl CJLR (in '000) 430 471 544 628 695

% growth 15.5 9.5 15.6 15.3 10.8Net ASP 45,098 46,875 43,602 43,851 44,976

% YoY 6.3 3.9 (7.0) 0.6 2.6

Expenditure

Material Cost 11,904 13,185 13,146 14,652 16,174

% Of Sales 61.4 60.3 59.2 59.4 59.6

Employee Cost 1,654 1,977 2,321 2,541 2,768

% Of Sales 8.5 9.0 10.5 10.3 10.2

Other Expenses 3,465 3,730 4,670 5,039 5,427

% Of Sales 17.9 17.1 21.0 20.4 20.0

Add back R&D Cost (1,266) (1,411) (1,560) (1,750) (1,820)

% Of Sales (6.5) (6.5) (7.0) (7.1) (6.7)R&D Cost Expensed 236 253 318 350 364

Total 15,993 17,734 18,895 20,831 22,914

% Of Sales 82.5 81.1 85.1 84.5 84.4

EBITDA 3,393.0 4,132.0 3,313.0 3,834.9 4,224.8

EBITDA margin % 17.5 18.9 14.9 15.5 15.6

Other Income - - - - -

Depreciation And Amortisation 875 1,051 1,403 1,655 1,834

Interest Expense 147 87 54 45 45

Forex gain/(loss) 137 (373) (27) - -

Share Of Profit/(Loss) From Joint Venture (7) (7) 66 111 170

% Of Sales (0.0) (0.0) 0.3 0.5 0.6

PBT 2,501 2,614 1,895 2,246 2,515

% Of Sales 12.9 12.0 8.5 9.1 9.3

Tax 622 576 247 515 567

Tax rate % 24.9 22.0 13.0 22.9 22.5

APAT 1,879 2,038 1,649 1,731 1,948

% Of Sales 9.7 9.3 7.4 7.0 7.2

RPAT 1,879 2,038 1,326 1,731 1,948

% Of Sales 9.7 9.3 6.0 7.0 7.2


We have raised our FY17/18E

EBITDA estimates as we build

in higher margins based onstrong 4Q

Outlook for JLR volume

growth appears healthy with

its new product cycle

In view of China JVs profits

improving in 4QFY16, we

have increased our estimates

for JLRs share of profits

7/26/2019 report (68)

6/13


Page | 6

Standalone: Key Financial Highlights/ Model Assumptions

Rs in Mn FY14 FY15 FY16 FY17E FY18E

Vehicle Sales (in units)

CV (Domestic) 381,412 329,943 327,730 381,300 429,514

PV (Domestic) 135,287 133,304 125,945 148,100 173,100

Exports 49,892 49,917 57,991 65,621 71,742

Total 566,591 513,164 511,666 595,021 674,356

% YoY (30.0) (9.4) (0.3) 16.3 13.3

Net Sales 339,070 358,905 419,480 503,828 585,839

% YoY (23.6) 5.8 16.9 20.1 16.3

Other Operating Income 3,811 4,042 4,218 4,640 5,104

Total Income From Operations 342,881 362,948 423,698 508,468 590,943

Expenditure

RM Cost 259,144 270,417 295,953 356,944 416,615

% Of Sales 76.4 75.3 70.6 70.8 71.1Employee Cost 28,777 30,915 30,267 34,564 38,200

% Of Sales 8.5 8.6 7.2 6.9 6.5

Other 59,784 66,518 70,076 78,654 85,775

% Of Sales 17.6 18.5 16.7 15.6 14.6

Total Expenses 347,705 367,849 396,296 470,162 540,590

% Of Sales 93.0 94.0 85.7 84.5 83.6

EBITDA (4,824) (4,901) 27,402 38,306 50,353

EBITDA Margin % (1.4) (1.4) 6.5 7.6 8.6

Other Income 18,669 18,815 14,765 17,188 17,645

Product Development Expenses 4,287 4,375 4,246 4,500 5,000Depreciation 20,703 26,032 24,538 27,492 29,960

Interest 13,532 16,117 14,811 13,196 12,889

PBT (Pre-exceptional Items) (24,677) (32,610) (1,427) 10,306 20,149

PBT (Pre-exceptional And JLR Dividend) (38,230) (47,460) (15,745) (4,094) 5,749


Expect healthy volume

growth across the CV and PV

segments for TTMT in FY17

Expect EBITDA margins also

to expand with operating

leverage benefits

7/26/2019 report (68)

7/13


Page | 7

SOTP Valuation

Valuation methodology Multiple Per share

Standalone EV / EBIDTA on Mar 18E 8.0 119

JLR EV / EBIDTA on Mar 18E 4.0 371

China JV EV / EBIDTA on Mar 18E 4.0 35

Other Subsidiaries P/E, PBV on Mar 18E 28Less: Net Automotive Debt 28

Target Price 524

Source: HDFC sec Inst Research

Change In Estimates

In Rs bnNew Old % chg

FY17E FY18E FY17E FY18E FY17E FY18E

Net Sales 3,001 3,331 3,027 3,359 (0.8) (0.9)

EBITDA 436 487 427 476 2.1 2.4Adj PAT 170 201 159 190 6.5 5.7

Adj EPS 49.9 59.2 46.9 56.0 6.5 5.7

Source: HDFC sec Inst Research

With a 5-6% uptick in our

consolidated earnings and

lower debt assumption, our

TP has been revised to Rs 524

Our earnings upgrade (~6%)

has been largely driven by

JLRs strongoperating

performance in 4QFY16

7/26/2019 report (68)

8/13


Page | 8

JLR Model Mix Slightly Weaker JLR:UK Mix Rose QoQ

Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research

TTMTsMHCV Market Share Declined TTMTsPV Market Share Improved Sequentially

Source: SIAM, HDFC sec Inst Research Source: SIAM, HDFC sec Inst Research

With an increase in share of

recently launched models

including XE/Discovery Sport,

the share of highly profitable

models (RR + RRS) witnessed

a decline

The management expects

both RR/RRS to clock decent

volume growth in FY17

China mix was stable after

witnessing fall over the past

many quarters. Demand

conditions have improved, as

per JLR

TTMTs MHCV market share

fell to ~50% with severe

pricing competition by newer

players

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%35.0%

40.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

2QFY14

3QFY14

4QFY14

1QFY15

2QFY15

3QFY15

4QFY15

1QFY16

2QFY16

3QFY16

4QFY16

Jaguar Land Rover Share of RR+RRS % - RHS

18 1421 16 20 14

25 19 25 19 24

16 1915

1615

17

2020

2322

21

26 25 24 3027

2815

1413

1111

17 20 20 18 16 21 22 29 18 2727

23 22 20 21 22 20 19 17 21 21 16

-

20

40

60

80

100

2QFY14

3QFY14

4QFY14

1QFY15

2QFY15

3QFY15

4QFY15

1QFY16

2QFY16

3QFY16

4QFY16

UK NA China Europe ROW

35.0%

40.0%

45.0%

50.0%

55.0%

60.0%

0

10

20

30

40

50

60

2QFY14

3QFY14

4QFY14

1QFY15

2QFY15

3QFY15

4QFY15

1QFY16

2QFY16

3QFY16

4QFY16

Volumes (in '000) M/S - RHS

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

0

10

20

30

40

50

60

2QFY14

3QFY14

4QFY14

1QFY15

2QFY15

3QFY15

4QFY15

1QFY16

2QFY16

3QFY16

4QFY16

Volumes (in '000) M/S - RHS

7/26/2019 report (68)

9/13


Page | 9

Peer Valuations

Mcap

(Rs bn)

CMP

(Rs/sh)Rating TP

Adj EPS (Rs/sh) P/E (x) EV/EBITDA (x) RoE (%)

FY16E FY17E FY18E FY16E FY17E FY18E FY16E FY17E FY18E FY16E FY17E FY18E

Ashok Leyland 302 106 NEU 100 3.9 5.4 6.4 27.2 19.6 16.4 14.5 11.0 9.4 20.9 26.0 27.1

Atul Auto 11 485 BUY 663 22.0 26.9 33.1 22.0 18.0 14.6 13.2 10.5 8.5 35.0 33.7 32.8

Bajaj Auto 755 2,609 NEU 2,685 126.2 141.4 158.8 20.7 18.5 16.4 13.9 12.0 10.4 31.8 31.2 30.9Eicher Motors 507 18,721 NEU 19,633 470.7 609.4 829.1 39.8 30.7 22.6 20.3 17.0 12.4 34.7 41.3 41.1

Hero Motocorp 618 3,094 BUY 3,325 156.8 172.4 190.0 19.7 17.9 16.3 13.1 11.6 10.3 43.1 39.6 37.6

M&M 787 1,332 NEU 1,394 59.7 68.5 77.7 22.3 19.4 17.1 14.0 12.1 10.5 16.8 17.2 17.5

Maruti Suzuki 1,230 4,073 BUY 4,564 153.9 192.8 228.2 26.5 21.1 17.8 13.5 12.2 10.2 18.3 20.0 20.6

SML Isuzu 14 957 NEU 1,086 35.3 52.7 67.9 27.1 18.2 14.1 16.6 11.7 8.9 15.9 20.7 22.8

Tata Motors 1,430 421 BUY 524 37.5 46.9 56.0 11.2 9.0 7.5 5.7 4.8 4.1 19.8 19.8 19.7

Source: Company, HDFC sec Inst Research*Tata Motors EV/EBITDA based on EV less net auto debt and adjusted EBITDA (normalised R&D spends in line with luxury car makers)

7/26/2019 report (68)

10/13


Page | 10

Income Statement : Consolidated

(Rs bn) FY14 FY15 FY16 FY17E FY18E

Net Revenues 2,328 2,628 2,756 3,001 3,331

Growth (%) 23.3 12.9 4.9 8.9 11.0

Material Expenses 1,436 1,599 1,624 1,785 1,992Employee Expenses 216 255 292 309 338

Product Development Exps 26 29 35 37 39

Other Operating Expenses 303 349 431 433 474

EBITDA 348 395 374 436 487

EBITDA Margin (%) 15.0 15.0 13.6 14.5 14.6

EBITDA Growth (%) 41.6 13.5 (5.4) 16.6 11.7

Depreciation 111 134 170 192 211

EBIT 238 262 204 245 276

Other Income 8 9 10 9 9

Interest 47 49 46 39 39PBT 199 222 167 214 246

Tax (Incl Deferred) 48 76 29 54 60

Minority Interest (1) (1) (1) (1) (1)

Profit from Associate Cos (1) 0 0 10 16

APAT 150 145 138 170 201

APAT Growth (%) 42.7 (3.3) (4.8) 23.0 18.5

Adjusted EPS (Rs) 46.5 45.0 40.6 49.9 59.2

EPS Growth (%) 41.4 (3.3) (9.8) 23.0 18.5

EO (Loss) / Profit (Net Of Tax) (10) (5) (28) - -

RPAT 140 140 110 170 201


Balance Sheet : Consolidated

(Rs bn) FY14 FY15 FY16P FY17E FY18E

SOURCES OF FUNDS

Share Capital - Equity 6 6 7 7 7

Reserves 650 556 801 961 1,150Total ShareholdersFunds 656 563 808 968 1,157

Minority Interest 4 4 9 10 10

Long-term Debt 606 736 705 735 752

Short-term Debt - - - - -

Total Debt 606 736 705 735 752

Net Deferred Taxes (8) (14) 4 10 16

Long-term Provisions & Others 202 212 205 220 228

TOTAL SOURCES OF FUNDS 1,461 1,501 1,731 1,942 2,162

APPLICATION OF FUNDS

Net Block 641 838 1,003 1,183 1,341CWIP 336 289 285 284 288

Goodwill 50 47 48 48 48

Investments 11 12 13 13 13

LT Loans & Advances 367 293 331 365 395

Total Non-current Assets 1,405 1,479 1,681 1,893 2,086

Inventor ies 273 293 334 392 428

Debtors 106 126 130 153 167

Cash & Equivalents 393 462 521 459 488

Total Current Assets 771 881 985 1,005 1,083

Creditors 716 858 935 956 1,007

Other Current Liabilities & Provns

Total Current Liabilities 716 858 935 956 1,007

Net Current Assets 55 22 50 49 77

TOTAL APPLICATION OF FUNDS 1,461 1,501 1,731 1,942 2,162


7/26/2019 report (68)

11/13


Page | 11

Cash Flow: Consolidated

(Rs bn) FY14 FY15 FY16P FY17E FY18E

Reported PBT 189 222 167 214 246

Non-operating & EO items (10) (5) (28) - -

Interest expenses 47 49 46 39 39Depreciation 111 134 170 192 211

Working Capital Change 25 187 (14) (79) (21)

Tax Paid (48) (76) (29) (54) (60)

OPERATING CASH FLOW ( a ) 314 510 313 312 415

Capex (400) (281) (333) (370) (374)

Free Cash Flow (FCF) (86) 230 (20) (58) 41

Investments (4) 1 0 - -

Non-operating Income 159 (7) 22 16 22

INVESTING CASH FLOW ( b ) (245) (286) (311) (354) (352)

Debt Issuance/(Repaid) 71 130 (31) 30 17Interest Expenses (47) (49) (46) (39) (39)

FCFE (63) 311 (98) (68) 19

Share Capital Issuance 4 (233) 136 - -

Dividend (7) - (1) (10) (12)

FINANCING CASH FLOW ( c ) 20 (152) 57 (19) (34)

NET CASH FLOW (a+b+c) 88 72 59 (62) 29

EO Items, Others - (3) - - -

Closing Cash & Equivalents 393 462 521 459 488


Key Ratios: Consolidated

FY14 FY15 FY16P FY17E FY18E

PROFITABILITY (%)

GPM 38.3 39.1 41.1 40.5 40.2

EBITDA Margin 15.0 15.0 13.6 14.5 14.6

APAT Margin 6.4 5.5 5.0 5.6 6.0RoE 29.0 23.8 20.1 19.1 18.9

RoIC (or Core RoCE) 20.7 17.0 14.9 13.6 13.4

RoCE 16.8 13.6 12.4 12.4 12.8

EFFICIENCY

Tax Rate (%) 24.0 34.4 17.2 25.3 24.6

Fixed Asset Turnover (x) 1.8 1.7 1.4 1.3 1.3

Inventory (days) 42.8 40.7 44.2 47.7 47.0

Debtors (days) 16.6 17.5 17.2 18.7 18.3

Payables (days) 112.2 119.2 123.8 116.3 110.3

Cash Conversion Cycle (days) (52.9) (61.1) (62.4) (49.9) (45.1)

Debt/EBITDA (x) 1.7 1.9 1.9 1.7 1.5

Net D/E (x) 0.1 0.2 0.0 0.1 0.1

Interest Coverage (x) 5.0 5.4 4.4 6.2 7.1

PER SHARE DATA (Rs)

EPS 46.5 45.0 40.6 49.9 59.2

CEPS 72.7 78.8 75.0 97.9 112.1

Dividend 2.0 - 0.2 2.5 3.0

Book Value 118.0 203.8 174.8 237.9 284.9

VALUATION

P/E (x) 9.0 9.4 10.4 8.4 7.1

P/BV (x) 3.6 2.1 2.4 1.8 1.5EV/EBITDA (x) 4.9 4.5 4.9 4.3 3.7

EV/Revenues (x) 0.6 0.6 0.5 0.5 0.4

OCF/EV (%) 22.5 34.9 21.5 20.4 27.7

FCF/EV (%) (6.2) 15.7 (1.4) (3.8) 2.7

FCFE/Mkt Cap (%) (4.7) 22.9 (6.9) (4.7) 1.3

Dividend Yield (%) 0.5 - 0.0 0.6 0.7

Source: Company, HDFC sec Inst Research * EV/EBITDA based on EV less net auto debt and

adjusted EBITDA (normalised R&D spends in line with luxury car makers).

7/26/2019 report (68)

12/13


Page | 12

RECOMMENDATION HISTORYDate CMP Reco Target

10-Jul-15 398 BUY 577

8-Aug-15 393 BUY 515

23-Sep-15 316 BUY 445

7-Nov-15 396 BUY 43512-Feb-16 276 BUY 434

12-May-16 380 BUY 479

31-May-16 421 BUY 524

Rating Definitions

BUY: Where the stock is expected to deliver more than 10% returns over the next 12 month period

NEUTRAL: Where the stock is expected to deliver (-)10% to 10% returns over the next 12 month period

SELL : Where the stock is ex ected to deliver less than - 10% returns over the next 12 month eriod

200

300

400

500

600

700

May

-15

Jun

-15

Jul-15

Aug

-15

Sep

-15

Oct-

15

Nov

-15

Dec

-15

Jan

-16

Fe

b-1

6

Mar-

16

Apr-

16

May

-16

Tata Motors TP

7/26/2019 report (68)

13/13


Page | 13

Disclosure:We, Navin Matta, MBA, & Sneha Prashant, MBA, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect ourviews about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) inthis report.Research Analyst or his/her relative or HDFC Securities Ltd. does not have any financial interest in the subject company. Also Research Analyst or his relative or HDFC Securities Ltd. or itsAssociate may have beneficial ownership of 1% or more in the subject company at the end of the month immediately preceding the date of publication of the Research Report. FurtherResearch Analyst or his relative or HDFC Securities Ltd. or its associate does not have any material conflict of interest.

Any holding in stockYes

Disclaimer:This report has been prepared by HDFC Securities Ltd and is meant for sole use by the recipient and not for circulation. The information and opinions contained herein have been compiled orarrived at, based upon information obtained in good faith from sources believed to be reliable. Such information has not been independently verified and no guaranty, representation ofwarranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. This document is forinformation purposes only. Descriptions of any company or companies or their securities mentioned herein are not intended to be complete and this document is not, and should not beconstrued as an offer or solicitation of an offer, to buy or sell any securities or other financial instruments.This report is not directed to, or intended for display, downloading, printing, reproducing or for distribution to or use by, any person or entity who is a citizen or resident or located in anylocality, state, country or other jurisdiction where such distribution, publication, reproduction, availability or use would be contrary to law or regulation or what would subject HDFCSecurities Ltd or its affiliates to any registration or licensing requirement within such jurisdiction.If this report is inadvertently send or has reached any individual in such country, especially, USA, the same may be ignored and brought to the attention of the sender. This document maynot be reproduced, distributed or published for any purposes without prior written approval of HDFC Securities Ltd .Foreign currencies denominated securities, wherever mentioned, are subject to exchange rate fluctuations, which could have an adverse effect on their value or price, or the income derived

from them. In addition, investors in securities such as ADRs, the values of which are influenced by foreign currencies effectively assume currency risk.It should not be considered to be taken as an offer to sell or a solicitation to buy any security. HDFC Securities Ltd may from time to time solicit from, or perform broking, or other servicesfor, any company mentioned in this mail and/or its attachments.HDFC Securities and its affiliated company(ies), their directors and employees may; (a) from time to time, have a long or short position in, and buy or sell the securities of the company(ies)mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of thecompany(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation andother related information and opinions.HDFC Securities Ltd, its directors, analysts or employees do not take any responsibility, financial or otherwise, of the losses or the damages sustained due to the investments made or anyaction taken on basis of this report, including but not restricted to, fluctuation in the prices of shares and bonds, changes in the currency rates, diminution in the NAVs, reduction in thedividend or income, etc.HDFC Securities Ltd and other group companies, its directors, associates, employees may have various positions in any of the stocks, securities and financial instruments dealt in the report,or may make sell or purchase or other deals in these securities from time to time or may deal in other securities of the companies / organizations described in this report.HDFC Securities or its associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for anyother assignment in the past twelve months.

HDFC Securities or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from the date of this reportfor services in respect of managing or co-managing public offerings, corporate finance, investment banking or merchant banking, brokerage services or other advisory service in a merger orspecific transaction in the normal course of business.HDFC Securities or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the researchreport. Accordingly, neither HDFC Securities nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts isnot based on any specific merchant banking, investment banking or brokerage service transactions. HDFC Securities may have issued other reports that are inconsistent with and reachdifferent conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not servedas an officer, director or employee of the subject company. We have not received any compensation/benefits from the subject company or third party in connection with the ResearchReport.HDFC Securities Ltd. is a SEBI Registered Research Analyst having registration no. INH000002475

HDFC securities

Institutional Equities

Unit No. 1602, 16th Floor, Tower A, Peninsula Business Park,

Senapati Bapat Marg, Lower Parel,Mumbai - 400 013Board : +91-22-6171 7330www.hdfcsec.com

report (68)

Documents

Transcript of report (68)