Top Picks Post Q3FY16 Results By IndiaNivesh

Domestic business continued its strong performance in Q3FY16 on back of growth in M&HCV segment. TTMT’s CV business is well placed to ride the recovery with wide and compelling product range ‐ with new launches across Prima and Ultra Range, refreshes/variants in SCV and pick‐ups. The company has done well in PV segment with launch of Zest and Bolt and we expect the 8.9x 8.1x Target Rs 496 good performance to continue with expected launch of new sporty compact hatchback, new sporty compact Sedan, Hexa, Nexon.

 On consolidated front, During Q3FY16 Tata Motors JLR profitability was impacted due to lower China sales and poor product mix. JLR continued to do well in US,UK and Europe. The sales is expected to keep on improving in the next three or four years on the back of upcoming launches like Jaguar XE in the US and the Jaguar F‐PACE in Spring 2016 followed by the Evoque Convertible. All these new products are expected to drive p p significant volume growth in 2016/17.

 Strong numbers from US, Europe and UK neutralising lower China JLR sales – JLR showed 32% YoY growth in Q3FY16. JLR sales are up 9% YTD inspite of 22 % fall in China sales compared to last year reflecting the slowdown in the China’s economy. But sales have soared 25% in the UK, 39% in the rest of Europe and 26 % in North America on YTD basis which has made up for fall in China
sales. Even JLR’s China joint venture with Chery has turned positive in the quarter and resulted in income of £22m million, despite the plant running at only 39% utilization.

IndiaNivesh-Top-Picks-Q3-FY16