In an update released on July 27, the brokerage said: "We have raised our EPS estimates for FY07 by 7.9% (a 5.2% increase on the consolidated EPS) and for FY08 by 6.5% (a 4% increase) by revisiting our volume expectations for the CV sector in general and adjusting the average realisation in the light of the altered product mix. We believe that the recent upturn in the sector is unlikely to be sustained in the coming months, and expect overall growth in M&H CV sales during the year (FY07) to be flat. For this quarter Tata Motors has managed margins well and would continue to expand them as it has hiked product prices. Hence, we are retaining our rating to MARKET PERFORMER at ruling valuations of 14.8x FY07E diluted EPS of Rs 49.3. On a consolidated basis, the scrip is available at 13.4x FY07E EPS of Rs 54.5."
