Stock Market Tips - Tata Motors close to 52-week low – is it a good buy?

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Tata Motors (TTMT) reported an extremely disappointing set of numbers for the quarter ended June, marred by higher raw material prices, meager growth in volumes, higher incentives, and higher foreign exchange (FX) hedge losses. However, reasonable valuations, growth prospects of JLR (Jaguar Land Rover) and the Tata Group’s top management’s focus on domestic business revival warrant investors' attention. Albeit short-term gyrations, we believe that the long-term outlook is positive for the business.

JLR posted a meager volume growth of 3.1 percent (YoY) on the back of lower wholesale volumes. The EBITDA margin was down by 460 bps (YoY) due to higher variable marketing expenses (particularly in the US) and material and operating costs.