The drive is missing

Tata Motors is the cheapest stock trading in the entire Sensex pack. But that is for a reason

Tata Motors, India’s largest auto manufacturer by revenues, is increasingly turning into a study in contrast with its star acquisition, the UK-based Jaguar Land Rover, churning out strong numbers quarter on quarter, while its domestic passenger vehicle (PV) business keeps hitting new lows. JLR, which was bought in 2008 from Ford Motor Co for $2.3 billion, besides accounting for 80% of the auto maker’s earnings, also continues to be its topline driver. In fact, for the just concluded third quarter, consolidated revenues were up at ₹63,877 crore, driven by a 61.1% y-o-y increase in revenues in rupee terms at JLR, while consolidated profit was up 173% to ₹4,929 crore, driven by record operating margins of 18%. While the volume performance was backed by the new launches (Range Rover, Range Rover Sport, Jaguar F type, XF Sportbrake and smaller engine options of XF and XJ), net average realisation growth was led by favourable product-mix (higher share of Range Rover and Range Rover Sport) and richer geography mix (higher share of China).