Tata Motors
Tata Motors
CMP: Rs 702.1
Target price: Rs 764
IDFC-SSKI Securities has assigned a ‘neutral’ rating to Tata Motors with a price Target of Rs 764. “Despite strong freight availability and stable freight rates, truck sales have been adversely impacted due to rampant overloading and stringent lending norms.
We expect Tata Motors’ truck volumes to recover in FY09 on a lower base, good freight availability and a likely easing of interest rates,” the IDFC-SSKI note to clients says.
“However, a delay in proposed revamp of the PV portfolio, possibly due to excessive focus on Nano, has postponed volume and market share recovery. We expect 15% revenue CAGR and a slower 10% net profit CAGR for Tata Motors over FY07-10,” the note added
