Nomura Financial Advisory and Securities has maintained 'Buy' on Tata Motors with target price of Rs 652 as against current market price (CMP) of Rs 520 in its report.
Commenting on the investment rationale, Nomura said, ''JLR wholesale volumes for April were 40,665 units up 1% yoy. This was below our estimate of 42,500 units. Jaguar volumes increased 19% yoy while Land Rover volumes declined 2% yoy.
In our view, Land Rover volumes for April continued to be hit by the lack of Evoque imports by China and the gradual ramp-up in local JV production.
We are factoring in 20% yoy volume growth for Tata in FY16F (567,000 units). We expect volumes to pick-up with full production ramp-up of Jaguar XE and local production in China. Any potential negative stock reaction on the back of these numbers should be seen as a further opportunity to accumulate the stock, in our view.''
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