Automobiles
Tata Motors
CMP: INR526
Bloomberg
Equity Shares (m)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
TTMT IN
3218.9
544/331
6/2/-33
Sector Update | 14 November 2014
Automobiles | Update
TP: INR620
Buy
JLR Oct-14 wholesale grows 5.6% YoY driven by LR
Land Rover registers 10% growth, Jaguar de-grew 14% YoY
M.Cap. (INR b) / (USD b) 1693.9/27.7
Financials & Valuation (INR Billion)
Y/E Mar
Net Sales
EBITDA
NP
EPS (INR)
EPS Gr. (%)
BV/Sh.INR
RoE (%)
RoCE (%)
Payout (%)
Valuations
P/E (x)
P/BV (x)
EV/EBITDA
Div. Yield
(%)
8.3
2.0
3.8
0.4
6.2
1.5
2.7
0.4
5.3
1.2
2.1
0.6
2015E
2,698
468
203
63.0
37.8
266.1
26.8
26.2
3.8
2016E
3,291
592
271
84.3
33.7
349.6
27.4
28.4
2.9
2017E
3,771
689
323
100.2
18.9
447.9
25.1
27.7
3.6
JLR Oct-14 wholesales have grown by 5.6% YoY (+16% MoM) to 38,187 units (est
35,597 units) driven primarily by Land Rover.
Land Rover grew by 10% YoY to 32,134 units (est 29,151 units), while Jaguar de-grew
by 13.6% YoY to 6,053 units (est 6,446 units).
In terms of regional retail sales performance released yesterday, China declined by 3%
YoY. US retails declined 19% YoY. Asia Pacific posted a strong growth in October
month with volumes rising by 21.5% YoY.
Jaguar retail sales declined across portfolio except F-type, resulting in overall Jaguar
volumes to be at 5,363 units, a de-growth of 6.7% YoY.
In Land Rover portfolio Defender posted growth of 16.2% YoY to 1,695 units, Discovery
posted a de-growth of 12.5% YoY and Range Rover posted growth of 16.8% YoY to
4,433 units. Total Land Rover retail sales were marginally down by 0.7% YoY (25.5%
MoM) to 28,149 units.
Commenting on the July retail performance Andy Goss, Jaguar Land Rover Group Sales
Operations Director said: “During a competitive year for premium car sales, I am
delighted to see strong demand for our products and that we are still performing well
across many of our key markets. Calendar year to date Jaguar Land Rover has
delivered solid growth, up an impressive 11% versus last year.”
JLR’s whole volumes have been impacted due to several transitory events including a)
brownfield capacity expansion at Solihull (by Dec-14) impacting production at existing
lines, b) captive engine plant (started in Oct-14), c) China Chery JV plant (started in
Oct-14) resulting in gradual transition of manufacturing of select products from UK to
China, d) Launch of Discovery Sport (phasing out of Free Lander 2), and e) Jaguar XE
launch (4QFY15). We expect JLR’s wholesale volumes to normalize from 4QFY15
onwards.
The stock trades at 8.3x/6.2x FY15/FY16 consol EPS of INR63/84. Maintain Buy with TP
of INR620 (FY16 SOTP-based) for ordinary shares and INR433 for DVR (~30% discount
to TP for ordinary shares).
TATA MOTORS : JLR [Wholesale]
Source: Company, MOSL
Jinesh Gandhi
(Jinesh@MotilalOswal.com); +91 22 3982 5416
Investors are advised to refer through disclosures made at the end of the Research Report.

Automobiles | Update
TATA MOTORS : JLR [Retails]
YoY
Company Sales
JLR
Jaguar
Land rover
Oct-14
33,512
5,363
28,149
Oct-13
34,101
5,750
28,351
YoY (%)
chg
-1.7
-6.7
-0.7
MoM
Sep-14
46,299
8,504
37,795
(%) chg
YTD
FY15YTD
(%) chg
-27.6
259,889
12.3
-36.9
44,566
3.1
-25.5
215,323
14.4
Source: Company, MOSL
Retail Volumes
Region-wise Retail Sales
Region
UK
US
Europe
China
Asia Pacific
RoW
Total JLR
Brand-wise Retail Sales
Brands
XF
XJ
XK
Others (incl. F-type)
Total Jaguar
Defender
Discovery
Freelander
Range Rover (incl. new)
RR Evoque
RR Sport (incl. new model)
Total Land Rover
Oct-14
5,717
5,167
6,952
7,463
2,155
6,058
33,512
Oct-14
3,135
1,167
205
856
5,363
1,695
3,094
4,212
4,433
9,389
5,326
28,149
Oct-13
5,471
6,381
6,939
7,243
1,773
6,294
34,101
Oct-13
3,412
1,395
215
728
5,750
1,459
3,537
3,995
3,796
9,991
5,573
28,351
YoY %
4.5
-19.0
0.2
3.0
21.5
-3.7
-1.7
YoY %
-8.1
-16.3
-4.7
17.6
-6.7
16.2
-12.5
5.4
16.8
-6.0
-4.4
-0.7
Sep-14
15,299
4,831
6,304
11,130
2,436
6,299
46,299
Sep-14
5,300
1,627
337
1,240
8,504
2,043
4,610
6,590
5,063
11,743
7,746
37,795
MoM % FY15YTD YoY %
-62.6
46,752
11.2
7.0
41,319
0.3
10.3
46,801
8.0
-32.9
70,161
35.0
-11.5
15,299
20.6
-3.8
39,557
-1.6
-27.6
259,889 12.3
MoM % FY15YTD YoY %
-40.8
25,257
0.1
-28.3
9,944
-9.4
-39.2
2,002
13.2
-31.0
7,363
40.4
-36.9
44,566
3.1
-17.0
9,720
7.6
-32.9
24,140
-10.5
-36.1
34,676
10.9
-12.4
30,620
24.6
-20.0
70,833
4.5
-31.2
45,334
58.4
-25.5
215,323 14.4
Source: Company, MOSL
14 November 2014
2

Automobiles | Update
NOTES
14 November 2014
3

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Automobiles | Update
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