MUMBAI: Tata Motors, a homegrown vehicle manufacturing giant, has no equity value due to rising net debt levels, covid-19-related disruptions delaying the much-needed deleverage cycle and no hope of recovery in the commercial and passenger vehicle segments, according to a report by brokerage firm, CLSA.
CLSA said, “we assign zero equity value to (Tata Motors’) India business." This comes at a time when auto industry experts estimate that the covid-19-led disruptions will lead to a fall of up to 40% in volumes in case of a flat GDP growth this fiscal.
Tata Motors’ luxury car unit, Jaguar Land Rover (JLR), is the only driver of the company's valuation, the report said. Revenues from JLR contributed to 79% of Tata Motors’ consolidated