Motilal Oswal Securities has a buy call on Tata Motors Ltd. with a target price of Rs 431. The current market price of Tata Motors Ltd. is Rs 277.4. Time period given by the brokerage is a year when Tata Motors Ltd. price can reach defined target. Tata Motors Ltd., incorporated in 1945, is a largecap company with a market cap of Rs 83689.80 crore.

Investment rationale by Motilal Oswal

We have cut our consol EPS estimates by 7%/15% for FY19/20 to factor in for a) weaker volumes, b) GBP appreciation and c) lower capex guidance. The stock trades at 6.8x FY20E EPS, 2.3x EV/EBITDA and 0.8x BV. Buy with TP of ~INR431 (SOTP). Key risks to our thesis: a) persistent weakness in demand environment for JLR, b) trade barriers impacting competitive positioning of JLR and c) adverse FX movement.