Tata Motors rises over 8% on strong JLR numbers, seems rerating happening in this Tata Group stock now
CLSA reiterates Buy call on Tata Motors as JLR turns FCF (Free Cash Flow) positive in Q2 as retail volumes improve, target at Rs 220/sh.
Jaguar Land Rover (JLR) retail sales for the quarter ending Sept 2020 were 113,569 vehicles, up over 50% from sales of 74,067 in the prior quarter, while down 11.9% from pre-Covid levels a year ago. China sales were particularly encouraging, up 14.6% on the prior quarter and 3.7% YoY. The month of Sept also saw sales up 28.5% year-on-year in China.
The Tata Motors Group global wholesales in Q2 FY21, including Jaguar Land Rover, were at 2,02,873 vehicles, lower by 16%, as compared to Q2 FY20. Global wholesales of all Tata Motors’ commercial vehicles and Tata Daewoo range in Q2 FY21 were at 56,614 vehicles, lower by 29%, over Q2 FY20. Global wholesales of all passenger vehicles in Q2 FY21 were at 1,46,259 vehicles, lower by 9% as compared to Q2 FY20. Global wholesales for Jaguar Land Rover were 91,367 vehicles. Jaguar wholesales for the quarter were 18,189 vehicles, while Land Rover wholesales for the quarter were 73,178 vehicles.
JLR's UK sales were down by 18.0% in Sept'20 to 15,450. Jaguar sales were down by 33.8% to 4,006 whereas LR sales were down by 10.5% to11,444. Jaguar Land Rover retail sales for the Sept 2020 Quarter were significantly better than sales in the preceding quarter but continue to be impacted by Covid-19.
About Jaguar Land Rover
Jaguar Land Rover is the UK’s largest automotive manufacturer, built around two iconic British car brands. Land Rover is the world’s leading manufacturer of premium all-wheel-drive vehicles. Jaguar is one of the world’s premier luxury marques, as well as being the first ever brand to offer a premium all electric performance SUV.
JLR Management says they have a growing portfolio of electrified products across all model ranges, embracing fully electric, plug-in hybrid and mild-hybrid vehicles, as well as continuing to offer the latest diesel and petrol engines, giving customers even more choice. JLR's mission is to shape future mobility with zero emissions, zero accidents and zero congestion.
Also, they are pleased to see sales recovering across many markets. In China, the first region to come out of lockdown, JLR performance has been particularly encouraging. They are also seeing strong improvement versus the preceding quarter in other key markets, with sales up more than 50% worldwide.
Authored by Rahul Kamdar
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