Shares of Tata Motors traded in India have gained 10% so far this year, while its ADRs traded in New York have gained 21%.Nomura’s Kapil Singh and Nishit Jalanexplain why they see more upside in Tata Motors:
Demand visibility for JLR is high with 4-6 months waiting period on Range Rover and RR Sport. As well, Discovery sport and Jaguar XE will be launched over the next six months. With the formation of stable and pro development Modi government, we also revise upwards our domestic volume estimates – now building in a faster revival – leading to domestic business value rising to INR34/sh from ~INR -12 earlier.
Shares of Tata Motors dropped 2% to 415.45 rupee in India today, but Nomura thinks they can rise as high as 482 rupee, a 16% gain.
Tata Motors’ ADRs have fallen 1.1% to $37.26 at 2:46 p.m. today.
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