Tata Motors tenth largest carmaker by m-cap globally

Aug 13 2014, 16:55 IST
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SummaryTata Motors has regained its spot as the 10th biggest carmaker by market cap globally.

Tata Motors has regained its spot as the 10th biggest carmaker by market cap globally. The carmaker’s market cap on Tuesday stood at $23.39 billion, Bloomberg data showed. On Tuesday, Tata Motors gained more than 8% intraday after the company saw its Q1FY15 consolidated net profit jump 212% y-o-y to R5,938 crore. The automaker announced its earnings after the market hours on Monday. Tata Motors saw its top line grow 38% y-o-y to R64,683 crore. Analysts remain bullish on the scrip.

Click here for graph“With capacity constraints getting resolved from Q3FY15 and launch of Discovery Sport/Jaguar XE, we expect volume growth momentum to continue. However, margins at 20.3% appear to have peaked in the medium term. We are forecasting 17.3% /16.4% Ebitda margins for JLR in FY15/16E,” Edelweiss said in a report. The brokerage has raised its earning estimates for the company. “We raise JLR margins by ~80 bps for FY15E/FY16E as we factor in operating leverage benefits, rising China share and benign commodity costs. Thus, we raise our Ebitda estimates by ~8% for FY15E/FY16e. Maintain ‘buy’ with SoTP target price of R550 (5.5x FY16E EV/Ebit for JLR and 6x EV/Ebitda for TTMT)," Edelweiss added.

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