Views on Tata Motors 1QFY2016 Results: Angel Broking

Views of Mr. Bharat Gianani (Sr. Research Analyst - Automobile, Angel Broking) on Tata Motors 1QFY2016 Results:

"Tata Motors 1QFY2016, results were in line with our estimates, though the numbers marginally missed the consensus expectations. Tata Motors topline remained under pressure mainly on account of dip in Jaguar Land Rover (JLR) revenues. JLR volumes during the quarter were flat, but the realization per vehicle dipped by 6% on account of unfavourable product mix and pricing cuts in the Chinese market. Given the topline degrowth, the operating margins at 16.4% came under pressure declining 230 bp yoy. The margins were in line with our expectations. Given the operating margin pressures at JLR, the Adjusted Net Profit at INR 2,847 cr almost halved yoy, coming in line with our estimates. We currently have ACCUMULATE rating on the stock and would revisit our estimates post management interaction."

Shares of TATA MOTORS LTD. was last trading in BSE at Rs.392.55 as compared to the previous close of Rs. 382.9. The total number of shares traded during the day was 1026890 in over 15105 trades.

The stock hit an intraday high of Rs. 395.5 and intraday low of 382. The net turnover during the day was Rs. 400082547.

Source : Equity Bulls

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