Tata Motors' JLR Q2 Wholesales At 96,800 Units: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Tata Motors Ltd.’s all three businesses are in a recovery mode. The India commercial vehicle business is expected to see a cyclical recovery, while the India passenger vehicle business is in a structural recovery mode. Jaguar Land Rover is also seeing a cyclical recovery, supported by a favorable product mix. However, supply-side issues may delay the recovery process. While there will be no near-term catalysts from the JLR business, the India business (~50% of SoTP) will continue to see a recovery. The stock trades at 15 times/14.4 times FY24E/FY25E consolidated earnings per share, and 4.6 times/4.1 times FY24E/FY25E consolidated enterprise value/Ebitda. We maintain our 'Buy' rating on the stock with a target price of Rs 740 (based on September-25 SOTP)..Wholesale volumes grew 29% YoY and 4% QoQJLR’s wholesale volumes (excluding China joint venture) grew 29% YoY/4% QoQ to 96,800 units (est. 92,500 units). H1 FY24 wholesales grew 29% YoY to 190,100 units.A breakup between Jaguar and Land Rover wholesale was not shared in the press release. Higher-than-expected wholesales despite an annual two-week summer shutdown indicate that supply-side constraints continue to ease..Retail volumes (including China JV) up 21% YoY/35% QoQ Q2 retails grew 21% YoY (+35% QoQ) to 106,600 units, while H1 FY24 retails increased by 25% to 208,500 units. Retails were higher in all the markets, with strong growth witnessed in the rest of world (+56% YoY), North America (+32% YoY), China (+7% YoY), UK (+9% YoY) and Europe (+16% YoY). The order book declined by 17,000 units QoQ to 168,000 units in Q2 FY24 (versus Q1 order book of 185,000 units) due to increased order fulfilment. RR/RR Sport/ Defender account for 77% of the order book..Click on the attachment to read the full report:.Bulls And Bears - India Valuation Handbook; Top Idea Picks For Large, Mid, SmallCap Stocks: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Tata Motors' JLR Q2 Wholesales At 96,800 Units: Motilal Oswal

Q2 free cash flow guidance at around £300 million.

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