May 24, 2018 / 4:15 AM / 3 months ago

BUZZ-India's Tata Motors falls on Q4 disappointment; analysts bearish on JLR

** Tata Motors Ltd falls as much as 3.2 pct to 299.5 rupees

** The automaker’s fourth-quarter profit plunged 50.5 pct to 21.25 bln rupees ($311.08 mln) due to higher expenses and a one-off charge

** Jefferies analysts say near-term demand outlook for Jaguar Land Rover (JLR) remains challenging due to weakness in key markets of UK, Europe and US but for standalone business outlook is strong helped by strong macro

** CLSA says JLR outlook remains weak and margin commentary subdued. Cut EPS estimates for current and next FY by 7 pct and 8 pct respectively to factor in lower volume and margin and higher depreciation for JLR

** Deutsche Bank says pricing and margin outlook at JLR continues to be challenging due to weakness in EU/UK, which could be partially offset by strength in China; cuts PT to 430 rupees from 465 rupees, retains “buy”

** Morgan Stanley analysts lowers earnings by 31/21 pct in FY19/20 due to lower volumes and margins for JLR

** Jefferies cuts PT to 440 rupees from 510 rupees, keeps “buy” rating; CLSA analysts keep “sell” rating, cut PT to 295 rupees from 330 rupees while Morgan Stanley cut PT to 339 rupees from 407 rupees and retained an “equal-weight” rating

** Twenty-seven of 40 brokerages rate the stock “buy” or higher, 11 “hold” and 2 “sell” or lower; their median PT is 443 rupees

** Stock down 28.34 pct this year as of Wednesday’s close compared to Nifty Auto index’s 9.6 pct fall ($1 = 68.3100 Indian rupees)

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