Motors came from operations outside of India. It witnessed 24% growth in revenue from China compared to 18% in the previous year on the back of strong sales JLR sales in the Chinese market. The division was responsible for nearly 88% of the company’s operating profit in the fiscal.
While experts remain upbeat about the prospects of the JLR business, some have started questioning whether there is much upside left for the stock, given a sharp rally of about 27% in the last three months.
Recently, Kotak Institutional Equities downgraded the stock to ‘add’ from ‘buy’, citing fair valuation of the stock. The brokerage, which also raised its target price on the stock from R355 to R375, however, acknowledged that JLR’s operating profit is likely to benefit from a richer product mix and positive operating leverage.