Tata Motors' High Debt Seen as Risk, Analyst Says

The transcript discusses the financial challenges faced by Tata Motors, including liquidity issues, investment needs, and debt risks. It explores potential strategies for debt reduction through strategic partnerships and equity participation. The possibility of selling JLR is considered unlikely, with a focus on technology partnerships instead. The transcript also touches on government assistance options in the UK and US, highlighting the company's long-term investment commitments.

What is a significant risk for Tata Motors as discussed in the first section?

• Excessive liquidity

• High market cap compared to debt

• Low CapEx commitments

• Debt exceeding market cap

What could further delay Tata Motors' recovery according to the second section?

• A second wave of COVID-19

• Increased market cap

• Improved earnings

• Reduced investment requirements

What strategy is Tata Motors considering for debt reduction?

• Selling JLR

• Increasing debt

• Equity participation with a strategic partner

• Reducing CapEx commitments

What is Tata Motors' stance on selling JLR?

• They are likely to sell it

• They may sell a minority stake

• They are unlikely to sell it

• They have already sold it

What kind of assistance might Tata Motors seek from the government?

• Reduction in market cap

• No assistance

• Financial aid from the UK Government

• Increased CapEx funding