INSUBCONTINENT EXCLUSIVE:
MUMBAI: CLSA has retained sell rating on Tata Motors with a target price of Rs 295
The brokerage remains concerned on Tata Motors' arm JLR given a weak volume outlook, rising competition in SUVs and cash flow pressure
"Narrowing hedging losses should boost its earnings growth in FY19 but we continue to see operational headwinds for its margin," said CLSA
JLR also targets a better margin with internal cost controls and operating leverage although CLSA believes the benefit from the latter will
be limited given weak demand
"We remain negative on JLR given multiple headwinds for the stock which are unlikely to be offset by its smaller-sized India business
