Buy Tata Motors - September 2012 Sales Update - Edelweiss

Tata Motors (TTMT IN, BUY, TP: INR315)

- CV sales at 48.7k units were in line with our expectation. Measures taken for inventory rationalization seem be working well for the company.

- Disappointment came from the passenger vehicle segment. Domestic sales at 21.6k units were much lower than expectation of 28.4k units.

- Passenger vehicle segment billing has been volatile for TTMT in the recent past.

- Going forward, we believe cut in interest rates and pick up in the investment cycle will revive demand for CVs. New launches should also aid growth for JLR business.

- We have a 'BUY' recommendation on the stock with TP of INR315.

Source : Equity Bulls

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