Analysts expect Tata Motors' India business to turn around by FY19

Strong volumes in recent months and cost-cutting in standalone business, with margin improvement in JLR, could lead to a re-rating

The Tata Motors' stock has gained about six per cent since the start of the month, on expectation of improved volumes, both at Jaguar Land Rover (JLR), its entity abroad, and the standalone level (largely India operations).

What will help at JLR is that the management has retained its margin expectation of 14-15 per cent for the medium term, citing a winding down of unfavourable foreign exchange hedging (likely over the next couple of quarters), higher scale from new launches such as the Discovery and Velar, and a better sales mix. What adds to the stock's attraction is the single-digit