D-Street cheers Tata Motor's zero debt plan, but is the target achievable?
Tata Motors announcement has therefore rekindled traders’ interest in the stock — it has gained 17% in three days.
Experts say it is a challenging task, company may have to resort to exits from some subsidiaries including stake sale in PV business.
Tata Motors has taken a leaf out of the Reliance Industries playbook to set itself a target of achieving “near-zero debt” in three years, but analysts believe it would be a very challenging task given the down cycle in the automobile business worldwide.Typically, meeting commitment to deleverage leads to a massive re-rating of the stock, as is visible in Reliance Industries’ share price in the past one year. Tata Motors announcement has