Reviews

TATA MOTORS

Ticker: 500570 FV: Rs.2
52-Week H/L: Rs.485.95/282.05 

We had recommended Tata Motors in Volume No 34, Issue No 26 (dated Apr 16, 2018), when the scrip was trading at Rs 358. Our recommendation was backed by factors like strong performance of commercial and passenger vehicles and attractive valuations. In Q4FY18, on a consolidated basis, the revenue was up by 15.9 per cent YoY, with sales from Jaguar and Land Rover growing by 13 per centYoY. Due to pressures from Europe and the UK, JLR continued to face headwinds. The EBITDA margin contracted by 145 bps to 12.3 per cent due to higher input costs. Its PAT tanked by 49.8 per cent YoY due to high depreciation costs and tax payments. In the short run, we expect limited upside in the stock price and hence urge investors to gradually REDUCE their exposure to the scrip.




SIEMENS

Ticker: 500550 FV: Rs.2
52-Week H/L: Rs.1470/994.80

We had recommended Siemens in Volume No 34, Issue No 16 (dated Feb 5, 2018), when the scrip was trading at Rs 1317. Our recommendation was backed by factors like strong financial performance and technology upgradation and smart grids. The company follows financial year from October to September. Thus, for Q2FY18, the revenue grew by 10.6 per cent YoY on a standalone basis. The net profit jumped by 18 per cent to Rs 219.7 crore due to growth in its topline . The company's order book stood at Rs 2923.6 crore, giving decent revenue visibility. The order has grown by 22 per cent in Q2FY18 on a YoY basis. Digitisation initiatives will continue to drive the revenue and profitability of the company. We urge investors to HOLD the scrip.