Goldman Sachs’ Equity Research team said Tata Motors, India’s largest automobile company, has the potential to reach a market cap of $30 billion by FY17.
Tata Motors, which has a market capitalisation of $13.8 billion, can see its cash flows nearly doubling in four years Goldman Sachs report said.
Giving a buy call on the stock, Goldman Sachs said, in order to achieve the market cap, JLR will have to move to a new lighter aluminum platform for Range Rover and Discovery to improve the fuel efficiency and pricing and the British marquees will also have to increase their focus on smaller engines and lower-priced vehicles.
The FII’s equity research team wrote that getting consumers buying into its brand, tightening regulations in Europe and overcoming the macro-economic uncertainties of volatile currency are the biggest challenges in front of Tata Motors.
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