Buy Tata Motors, target of Rs 339: Angel

Angel Broking has maintained its buy rating on Tata Motors with a target price of Rs 339 in its November 24, 2008 research report. "Jaguar Land Rover (JLR) is in secret talks with the UK government for a £1-billion loan and an answer to the request would be made in the next fortnight, a media report said. Tata is looking to the government for a bridging loan to help it over the next 24 months, a period in which the industry will come under further financial pressure when it is difficult to access funding markets, the report added. The economic downturn has hit the auto industry hard and at present a number of large UK-based industrial groups are also considering asking the government for financial support."

"The market for JLR cars has fallen 25% around the world and this could further deteriorate in near term. JLR has already cut shifts and production days at Solihull, Halewood and Castle Bromwich. The Society of Motor Manufacturers and Traders, which is representing the interests of the wider British industry, is thought to want between £2 billion and £3 billion of state aid. Meanwhile, Toyota has also cut shifts at its UK plants, and Bentley, the luxury carmaker majority-owned by Volkswagen of Germany, has cut shifts at its plant in Crewe. We maintain Buy on Tata Motors with Target price of Rs 339," says Angel's research report.

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Source: Moneycontrol