>TATA MOTORS (ICICI DIRECT)

On high speed…

Tata Motor’s share price surged ~13% touching Rs 574 creating a new high in the last one year. We have valued the company on a sum of the parts (SOTP) basis to arrive at our target price of Rs 560. Since the stock has crossed our target price, we advise booking profits on the counter and reentering at low levels around Rs 464 per share.

Valuations
We maintain our earning estimates for the company and price target of Rs 560 (refer our report dated August 24 2009). With the recent run up in prices, the target price has been achieved. Hence, at the CMP of Rs 574, we advise BOOK PROFIT. At the CMP, the stock is trading at 11.1x and 9.7x its standalone FY10E and FY11E EPS, respectively.

To see full report: TATA MOTORS