Reco: BUY

CMP: Rs654

Target Price: Rs830

In line, maintain BUY

·      Sales (Rs 61.2bn) and EBIDTA (Rs 9.2bn) were in line with est. APAT at Rs 6.2bn was below est. of Rs 6.5bn due to higher tax rate (28.6% vs our est. of 25%)

·      Company maintains FY12 industry growth of 15%-18%/ 10%-12% for automotive/tractors. In last few weeks headwinds  (higher RM, interest rate outlook, inc in excise) have increased

·      Upgrade volume by 6.5%/7.5% for FY11/FY12 for higher sales across segments. However, net profits est. remains unchanged as we are factoring in cost pressures

·      Maintain BUY but lower TP to Rs 830(-5.6%) due to 3% equity dilution and higher strategic inv. Valuing core business at Rs 695 (9x FY12E EV/EBIDTA) and listed subs at Rs 135 per share