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Tata Motors is worth nothing without Jaguar Land Rover, says CLSA

The $3.7 billion Indian auto firm faces a significant increase in debt due to the crisis, and its plan to deleverage may be delayed by four to six quarters, CLSA said.

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The virus has also been a setback for Jaguar Land Rover, which was beginning to show signs of a turnaround late last year from the combined negative impact of a slowdown in China, Brexit and European emissions rules.

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With the coronavirus pandemic crippling demand for automobiles worldwide, Tata Motors is worth nothing without its luxury unit Jaguar Land Rover, according to CLSA.

The $3.7 billion Indian auto firm faces a significant increase in debt due to the crisis, and its plan to deleverage may be delayed by four to six quarters, CLSA said. It has already received a lifeline from parent Tata Sons in the form of a preferential equity allotment, and the brokerage thinks further aid could be required.

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First Published: May 13 2020 | 12:27 AM IST

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