Tata Motors : Strong Buy Call for Target of Rs 1523

by khalid on 16/03/2011 · 0 comments

Stock Broking firm ICICI Securities Limited is bullish on Tata Motors Limited (TELCO) and has given ‘Strong Buy’ call for a time horizon of 12 to 15 months.

Market Price on Recommendation : Rs 1209 on 15th Feb 2011
Target Price : Rs 1523
Time Horizon : 12 to 15 months
Potential Upside : 26%

According to the Broking firm, the investors can buy the stock on dips with a 12 to 15 month target of Rs 1523. Tata Motors continued to show a strong growth momentum at the standalone and subsidiary level. On the standalone front, volumes grew at 14.3% YoY to touch 1,94,085 units driven by 21.5% YoY growth in the CV segment and 55% YoY rise in the export segment. JLR continued the impressive performance with a volume growth of 11% in the wholesale segment at 63,155 units due to strong growth in North America, China and Russia (together contributing YTD 39% of volumes).

Valuations : We have valued Tata Motors Limited (TELCO) on an SOTP basis. We have valued the standalone business at Rs 569, JLR at Rs 836 and other major subsidiaries at Rs 73. We have also valued the investment book at Rs 45/share and maintain our target price of Rs 1523. We change our rating from BUY to STRONG BUY.

Share’s Data :-
BSE Code : 500570
Mkt. Cap : Rs 73,123.05 Crores
Tata Motors Ltd. share’s CMP is Rs 1,153.00 on 15th Mar 2011.

Stay tuned to BelltheBull Blog for more news on Tata Motors Limited (TELCO) !

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