Analysts' corner

Last Updated: Wed, Jan 15, 2014 04:50 hrs

Reco price/date: Rs 368/January 13;
Current/target price: Rs 372/419
Jaguar Land Rover (JLR) recorded a strong growth in retail sales, posting a better-than-expected growth of 21 per cent y-o-y to 40,635 units. The performance continues to be driven by the strong momentum in the new models, with sustained growth traction across the world markets, specially in China, rest of the world and North America. Jaguar sales maintained a strong run, posting a growth of 41.3 per cent y-o-y to 6,981 units led by the strong growth in the XF and XJ models and aided further by incremental sales from the F type. Land Rover sales, too, recorded a strong growth of 17.5 per cent y-o-y to 33,654 units driven by the healthy growth traction in Range Rover Evoque and ramp-up in the dispatches of the new Range Rover and the Range Rover Sport. Analysts expect headwinds in the stand-alone business to continue in FY14 due to the weak macroeconomic environment, expected to continue impacting domestic volumes. Analysts expect JLR to sustain its strong performance driven by continued momentum in the global luxury vehicle market, success of the recent models and a strong product pipeline. Maintain Accumulate

-Angel Broking

Reco price/date: Rs 464/January 13;
Current/target price: Rs 430/335
Ranbaxy got Form 483s, with certain observations for the Toansa plant (API, or active pharmaceutical ingredients, facility) on January 11 after inspection by the US Food and Drug Administration (USFDA). Analysts say this will not impact the API production/supplies from the facility and earnings. Also, it is difficult for us to assess if the 483s could lead to further action. However, it is negative and will weigh on the stock, as the unit is a critical API manufacturing facility. Maintain Hold
-Edelweiss Securities

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