10 December 2019
JLR – wholesales down marginally in Nov’19
Equity Shares (m)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
494.4 / 7
239 / 106
Financials Snapshot (INR b)
2019 2020E 2021E
3,019 2,851 3,114
297.9 336.5 396.9
Adj. EPS (INR)
EPS Gr. (%)
177.2 177.6 189.0
Shareholding pattern (%)
FII Includes depository receipts
Stock Performance (1-year)
Sensex - Rebased
Double-digit growth in China retails for fifth straight month
JLR’s wholesale volumes declined marginally by 2.4% YoY to ~48.1k units (our
estimate: ~45.5k) in Nov’19.
Jaguar volumes declined ~29% YoY to ~10.8k units (our estimate: 12.5k),
whereas Land Rover (LR) volumes increased ~9% YoY to ~37.3k units (our
JLR’s retail volumes declined 3.4% YoY in Nov’19 as the recovery in China
(+29%) and North America (~+5%) was offset by the fall in the UK (~-11%),
Europe (~-17%) and RoW (~-17%). China witnessed the fifth consecutive
month of a recovery in volumes.
Jaguar’s retail volumes declined ~23% YoY in Nov’19.
LR’s retail volumes were up 5.5% YoY, driven by higher sales of new RR
Evoque (~+25%), new LR Discovery Sports (+4.4%), LR Discovery (+15.5%) and
RR Sport (~+5%).
Mr Felix Brautigam, Jaguar Land Rover Chief Commercial Officer said,
“Against the backdrop of a downturn in the global automotive market, we
were pleased to see our sales grow in the US and China. Despite the ongoing
headwinds in China, we continue to see green shoots of recovery in our sales
there. The intensive work with our retailers in the region, combined with
Significant process and product improvements are starting to gain traction.
For Jaguar globally, we were very excited to launch our new Jaguar F-TYPE at
the beginning of December, to initial very positive customer and media
reaction. Land Rover continues to perform well overall, with a very rich mix of
models. Sales of our comprehensively updated Land Rover Discovery Sport
are also gathering momentum while appreciation of the all-new Range Rover
Evoque is growing apace as customers opt for its combination of dynamic on-
road handling, luxurious refinement and trademark Land Rover all-terrain
The stock trades at 13.7x FY21E consol. EPS and 0.8x P/B. Maintain
target price of INR195 (Sep’21 SOTP-based).
Jinesh Gandhi - Research analyst
(Jinesh@MotilalOswal.com); +91 22 6129 1524
Aanshul Agarawal - Research analyst
(Aanshul.Agarawal@MotilalOswal.com); +91 22 7193 4337
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.