Emkay recommended a BUY on Tata Motors (CMP: Rs 754) with a target price of Rs 905. The analysts at Emkay say that Tata Motors` standalone results were below their expectation at net profits by around 6%. While net sales at Rs 72.5 billion was in line with the estimates, the operting performance was below the expectations. The analysts have lowered their estimates to factor in delay in the launch of its New Indica` platform. They believe that the pressure will be both on volumes as well as profitability front till the new products are not introduced in the markets. At the same time they have upgraded their estimates for the subsidiaries to factor in better than expected performance.

At current juncture, the analysts have not factored in the revenues from Tata NANO as they wait for more clarity on execution aspects of the project. Over next 3 to 6 months, they expect the subsidiaries to provide a cushion to below par performance, if any, in the stand alone business due to delay in recovery in M&HCV cycle or product launches.