Monthly Update | January 2013

February 14, 2013

Tata Motors
Jaguar Land Rover Monthly sales update
Exhibit 1: JLR - wholesale volumes
Jan-13 Jaguar Land Rover Total Jan-12 chg (%) Dec-12 chg (%) YTDFY13 YTDFY12 chg (%)

ACCUMULATE
CMP Target Price
Investment Period
18.3 18.2 18.2 43,089 250,806 293,895 44,463 201,237 245,700 (3.1) 24.6 19.6

`297 `326
12 Months

6,440

4,547

41.6

5,444

Stock Info Sector Market Cap (` cr) Net Debt (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Automobile 94,640 15,773 1.5 337/203 1,427,706 2 19,497 5,897 TAMO.BO TTMT@IN

31,733 24,746 38,173 29,293

28.2 26,838 30.3 32,282

Source: Company, Angel Research

Jaguar and Land Rover (JLR) registered better-than-expected wholesale volume growth of 30.3% yoy (18.2% mom) to 38,173 units; against our expectations of 35,500 units. The growth was driven by strong performance across the Jaguar and Land Rover brands. Jaguar sales registered a robust 41.6% yoy (18.3% mom) growth led by the introduction of the model year 2013 models - XF Sportbrake, XF AWD and smaller engine variants of XF and XJ. Land Rover sales too grew at a robust rate of 28.2% yoy (18.2% mom) primarily driven by Evoque, Freelander and the new Range Rover. While, the Evoque and Freelander models continue to benefit from the availability of additional capacity (due to third shift at Halewood plant); the new Range Rover grew on the back of ramp-up in deliveries. We expect the volume performance to improve in 4QFY2013 led by ramp-up at the Halewood plant which would boost the production of Evoque and Freelander. Further dispatches of the new Range Rover, and AWD and smaller engine variants of XF and XJ will also aid volume growth going ahead.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 34.7 11.9 46.1 7.3

Abs. (%) Sensex Tata Motors

3m 4.7 7.0

1yr 9.2 10.8

3yr 20.7 115.7

Exhibit 2: Global peers wholesale volumes

Jan-13 BMW Audi Mercedes Jan-12 chg (%) Dec-12 chg (%) YTDFY13 YTDFY12 chg (%)

107,276 111,750 94,895

96,183 96,100 86,921

11.5 152,286 16.3 110,250 9.2 125,234

(29.6) 1,291,158 1,155,364 1.4 1,220,650 1,086,200 (24.2) 1,101,112 1,066,847

11.8 12.4 3.2

Source: Company, Angel Research

Global luxury carmakers kicked off 2013 on a strong note driven by continued volume momentum in China. Audi registered a strong growth of 16.3% yoy backed by the success of its mid-size model lines A4, A5 and Q5. Geographically, deliveries in China, US and Europe grew by 38.5%, 7.5% and 8.6% yoy respectively. BMW continued its positive momentum and posted an 11.5% yoy growth, driven by continued traction in X1, and 3 series. While volumes in China grew strongly by 14.7% yoy; US volumes posted a sluggish growth of 2.3% yoy. Mercedes registered a 9.2% yoy growth driven by strong sales in China (up 15.4% yoy) and US (up 10.8% yoy). The Management expects the demand environment to remain volatile in Europe.
Yaresh Kothari
+91 22 39357800 Ext: 6844 yareshb.kothari@angelbroking.com

Please refer to important disclosures at the end of this report

Tata Motors | January 2013

Exhibit 3: Retail volumes - JLR

Jan-13 Jan-12 chg (%) Dec-12 chg (%) YTDFY13 YTDFY12 chg (%)

Jaguar Total

5,759

4,106

40.3

4,939

16.6 1.6 3.8

44,175 249,867 294,042

42,902 190,704 233,606

3.0 31.0 25.9

Land Rover 29,118 22,249 34,877 26,355

Source: Company, Angel Research

30.9 28,650 32.3 33,589

JLR posted a strong retail volume growth of 32.3% yoy (3.8% mom) to 34,877 units, driven by strong growth in Jaguar and Land Rover volumes. Total volumes ex-Evoque too posted a robust growth of 32.6% yoy (2.9% mom) led by easing of capacity constraints on the Freelander model and dispatches of the new Range Rover, smaller engine and AWD variants of XF and XJ. According to the Management, the first deliveries of the all-new Range Rover have created a strong buzz around the brand which should drive the growth going ahead. Jaguar sales registered a robust 40.3% yoy (16.6% mom) growth, led by strong growth in the XF and XJ models, which grew by 36.8% and 70.4% yoy respectively. The introduction of the model year 2013 models - XF Sportbrake, XF AWD and smaller engine variants of XF and XJ were the primary growth drivers. Jaguar sales were up in all the major markets with China and UK witnessing a growth of 164% (53.2% mom) and 33.1% yoy (12.5% mom) respectively. Land Rover sales too grew at a robust rate of 30.9% yoy (1.6% mom) primarily driven by Evoque, Freelander and the new Range Rover. The Evoque and Freelander models benefitted from the availability of additional capacity which led to a 31.6% (6% mom) and 56.5% yoy (28% mom) growth in their sales, respectively. The new Range Rover too posted a strong growth of 80.7% mom as the company continues to ramp-up the deliveries of the new model. Land Rover sustained its growth momentum across all the geographies and registered record January sales in several countries, including the UK, US and Germany. While China sales grew strongly by 61.2% yoy; the sales in UK, US and Rest of the World increased by 33.2%, 29.1% and 23.3% yoy respectively.

Exhibit 4: Jaguar retail sales by car-type

Jan-13 Jan-12 chg (%) Dec-12 chg (%) YTDFY13 YTDFY12 chg (%)

XF New XJ XK Total Jaguar

3,685 1,854 220 5,759

2,694 1,088 324 4,106

36.8 70.4 (32.1) 40.3

3,399 1,245 295 4,939

8.4 48.9 (25.4) 16.6

28,391 12,663 3,121 44,175

26,173 12,697 4,032 42,902

8.5 (0.3) (22.6) 3.0

Source: Company, Angel Research

February 14, 2013

Tata Motors | January 2013

Exhibit 5: Land Rover retail sales by car-type

Jan-13 Defender Discovery Freelander Range Rover Range Rover Evoque Range Rover Sport New Range Rover Total Land Rover Jan-12 chg (%) Dec-12 chg (%) YTDFY13 YTDFY12 chg (%)

1,388 3,861 5,401 373 10,578 4,850 2,667

1,222 3,383 3,451 2,005 8,035 4,153 -

13.6 14.1 56.5 (81.4) 31.6 16.8

1,535 4,477 4,221 1,393 9,977 5,571 1,476

(9.6) (13.8) 28.0 (73.2) 6.0 (12.9) -

12,677 36,847 41,755 17,646 90,005 46,492 4,445

15,831 36,433 38,362 24,026 30,745 45,307 -

(19.9) 1.1 8.8 (26.6) 192.7 2.6 31.0

29,118 22,249

30.9 28,650

1.6 249,867 190,704

Source: Company, Angel Research

Exhibit 6: Jaguar monthly retail sales trend by car-type

(units) 10,000 8,000 6,000 4,000 2,000 0

Exhibit 7: Land Rover monthly retail sales trend by car-type

(units) 50,000 40,000 30,000 20,000 10,000 0

Dec-12

Jun-12

Jan-12

Mar-12

Aug-12

Apr-12

Dec-12

Jun-12

Jan-12

Mar-12

Aug-12

Feb-12

Apr-12

May-12

Nov-12

Sep-12

Oct-12

Jan-13

XF

New XJ

XK

Defender Range Rover Evoque

Discovery Range Rover Sport

May-12

Jul-12

Freelander New Range Rover

Range Rover

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 8: JLR retail sales region wise

Jan-13 Jan-12 chg (%) Dec-12 chg (%) YTDFY13 YTDFY12 chg (%)

Asia Pacific China Region Europe North America UK Rest of the world

1,916 1,310 8,432 4,849 7,549 6,840 5,614 4,533 6,413 4,816 4,953 4,007

46.3 73.9 10.4 23.8 33.2 23.6

1,631 8,201 6,960 6,678 4,118 6,001

17.5 2.8 8.5 (15.9) 55.7 (17.5)

14,246 63,780 62,937 50,960 52,980 49,139

10,010 38,351 51,806 47,295 43,072 43,072

Nov-12

Feb-12

Sep-12

Oct-12

42.3 66.3 21.5 7.7 23.0 14.1

Source: Company, Angel Research

February 14, 2013

Jan-13

Jul-12

Tata Motors | January 2013

Exhibit 9: JLR retail sales-mix by region

(%) 100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0

16.4 18.3 17.2

20.7 5.0 17.8

14.1

17.5 14.7 18.9

16.2 18.8 17.1 21.3

17.8 16.9 16.0 23.8

17.3 17.9 18.0 21.2

22.0 3.9 23.5

14.3

17.0 18.2 16.7

15.5 17.6 16.2 22.8

17.9 12.3 19.9 20.7

14.2 18.4 16.1 21.6

33.9

34.2

28.0 26.0 23.6

13.1 22.6 20.2 14.6 21.8 22.2 20.7 20.7

18.9

13.6 17.3 24.6

17.7

25.9

16.6

18.5

23.0

24.4

24.2

Mar-12

Aug-12

May-12

Nov-12

Dec-12

Apr-12

Jul-12

Feb-12

Sep-12

Oct-12

Jan-12

Jun-12

Asia Pacific

China Region

Europe

North America

UK

Rest of the world

Source: Company, Angel Research

Outlook and valuation: We retain our positive view on JLR and expect a
~15% volume CAGR over FY2012-14 driven by Evoque and new product launches (Range Rover, Range Rover Sport, Jaguar XF Sportbrake and AWD and smaller engine options in the XF and XJ models). Further, a favorable market and product-mix and stable commodity prices will help mitigate raw-material cost pressures. We maintain our Accumulate rating on Tata Motors with a sum-of-the-parts (SOTP) target price of `326.

February 14, 2013

Jan-13

Tata Motors | January 2013

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Tata Motors No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

February 14, 2013

Tata Motors | January 2013

6th Floor, Ackruti Star, Central Road, MIDC, Andheri (E), Mumbai- 400 093. Tel: (022) 39357800
Research Team Fundamental: Sarabjit Kour Nangra Vaibhav Agrawal Bhavesh Chauhan Viral Shah Sharan Lillaney V Srinivasan Yaresh Kothari Ankita Somani Sourabh Taparia Bhupali Gursale Vinay Rachh Amit Patil Shareen Batatawala Twinkle Gosar Tejashwini Kumari Technicals: Shardul Kulkarni Sameet Chavan Sacchitanand Uttekar Derivatives: Siddarth Bhamre Institutional Sales Team: Mayuresh Joshi Hiten Sampat Meenakshi Chavan Gaurang Tisani Akshay Shah Production Team: Tejas Vahalia Dilip Patel Research Editor Production tejas.vahalia@angelbroking.com dilipm.patel@angelbroking.com VP - Institutional Sales Sr. A.V.P- Institution sales Dealer Dealer Sr. Executive mayuresh.joshi@angelbroking.com hiten.sampat@angelbroking.com meenakshis.chavan@angelbroking.com gaurangp.tisani@angelbroking.com akshayr.shah@angelbroking.com Head - Derivatives siddarth.bhamre@angelbroking.com Sr. Technical Analyst Technical Analyst Technical Analyst shardul.kulkarni@angelbroking.com sameet.chavan@angelbroking.com sacchitanand.uttekar@angelbroking.com VP-Research, Pharmaceutical VP-Research, Banking Sr. Analyst (Metals & Mining) Sr. Analyst (Infrastructure) Analyst (Mid-cap) Analyst (Cement, FMCG) Analyst (Automobile) Analyst (IT, Telecom) Analyst (Banking) Economist Research Associate Research Associate Research Associate Research Associate Research Associate sarabjit@angelbroking.com vaibhav.agrawal@angelbroking.com bhaveshu.chauhan@angelbroking.com viralk.shah@angelbroking.com sharanb.lillaney@angelbroking.com v.srinivasan@angelbroking.com yareshb.kothari@angelbroking.com ankita.somani@angelbroking.com sourabh.taparia@angelbroking.com bhupali.gursale@angelbroking.com vinay.rachh@angelbroking.com amit.patil@angelbroking.com shareen.batatawala@angelbroking.com gosar.twinkle@angelbroking.com tejashwini.kumari@angelbroking.com

Angel Broking Ltd: BSE Sebi Regn No : INB 010996539 / CDSL Regn No: IN - DP - CDSL - 234 - 2004 / PMS Regn Code: PM/INP000001546 Angel Securities Ltd:BSE: INB010994639/INF010994639 NSE: INB230994635/INF230994635 Membership numbers: BSE 028/NSE:09946 Angel Capital & Debt Market Ltd: INB 231279838 / NSE FNO: INF 231279838 / NSE Member code -12798 Angel Commodities Broking (P) Ltd: MCX Member ID: 12685 / FMC Regn No: MCX / TCM / CORP / 0037 NCDEX : Member ID 00220 / FMC Regn No: NCDEX / TCM / CORP / 0302

February 14, 2013