InvestorQ : What impact you see on the Tata Motors stock as it goes into debt reduction?
diksha shah made post

What impact you see on the Tata Motors stock as it goes into debt reduction?

Answer
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Riya Dwivedi answered.
4 weeks ago


One of the major mandates that Mr. Chandrasekharan had when he took charge of Tata Sons was to pare down the debt of the manufacturing companies. Tata Motors has been one of the prime candidates for debt restructuring considering its outstanding debt.

TAMO has now set a clear time line of next 3 years to pare its total debt of Rs.50,000 crore substantially. However, the company has not committed how much it intends to reduce the debt to. That is likely to be a big positive for the stock, which has doubled since March.

Tata Motors also plans to achieve free cash flows by 2021 and debt reduction by 2022. The company has also been badly hit by the pandemic in India even as JLR sales have been hit by the global slump in auto demand.