Tata Motors PV, Hero MotoCorp, Siemens, Relaxo Footwear, Apollo Tyres Q2 Results Review — HDFC Securities

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HDFC Securities Institutional Equities

Tata Motors Passenger Vehicles - Headwinds galore for JLR

Management has indicated that even without the cyber incident, it would have amended JLR’s guidance at this point. Weaker demand for JLR in key markets like Europe and China continues, leading to higher variable marketing expense (VME).

Also, higher US tariffs and China’s luxury tax—both currently being absorbed by the OEMs to some extent—have structurally impacted the company’s cost base over the medium term.

However, the India PV division is in a stronger position, aided by recent GST rate rationalization and improved EV profitability (including PLI).

We value Tata Motors Passenger Vehicles Ltd. on SOTP basis: JLR is valued at Rs 156, using 3.0x Sep-27 EPS (~1/4th discount to key competitor Mercedes Benz); the India PV business is valued at Rs 154, using 23x Sep-27 EPS (~15% discount to market leader Maruti Suzuki), and the stake in Tata Technologies is valued at Rs 32.

This results in a target price of Rs 342, and we maintain our Reduice rating.

Hero MotoCorp - Good operational performance with improving outlook

Demand remains robust for Hero MotoCorp Ltd., with management highlighting that demand momentum has historically sustained for a couple of years post each of the three excise duty cuts done over the past couple of decades.

While the price cut then was in the range of 5-8%, the recent GST rate cut has provided for a price cut equivalent to the higher end of that range. In recent times, exports and EVs too have been consistently outperforming the respective industries.

However, we view recent management changes in CY25 as a key overhang and prefer to wait for the new leadership to discuss its business strategy and vision.

We value the company at 19x Sep-27 EPS, adding the value of its stakes in Hero FinCorp (Rs 313) and Ather Energy (Rs 386), arriving at a target price of Rs 7,145. We maintain a Buy rating.

Siemens - Muted financial performance; stable order booking

Siemens India Ltd.’s revenue/Ebitda/APAT of Rs 46.3/5.2/4.2 billion was a (miss)/beat of 5.4/-1.3/-9.4% respectively. Revenue growth was driven by strong performance in the Mobility and Smart Infrastructure businesses while Digital Industries volumes were impacted by a lower reach in the order backlog from the previous year and muted private sector Capex.

In this quarter, the worst seems to be behind for the segment, with business showing recovery signs indicating that the de-stocking phase is now largely over.

Siemens’ order inflow stood at Rs 48 billion (+10.5% YoY) as of Sep’25, with order book standing at Rs 422.5 billion (+6% YoY). Siemens has completed the demerger of its energy segment, resulting in the creation of a separate entity that was listed in Jun’25.

Additionally, Siemens has changed its financial year from Oct-Sept to April-March. The current FY has been changed to cover the period from Oct 01 2024 to March 31, 2026 (18 months). Thereafter, the FY will follow the April 1 to March 31 cycle.

Siemens’ segments are exposed to government capex, which is expected to grow 10% YoY, while private capex recovery is contingent on pick-up in consumption.

We have marginally lowered our estimates. Given the robust order backlog and stable order inflows, we maintain Buy, with increased target price of Rs 3,736 (rolled over to 55x Sep-27 EPS).

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