Dramatic change in Tata Motors' domestic biz, analysts give it more weight

Equity value of India business comprised of commercial and passenger vehicles now accounts for over half the value in SOTP calculations as compared to 0-30% two years ago

Tata Motors’ domestic business which was not accorded as much importance by brokerages in the overall sum-of-the-part (SOTP) valuation, has seen a reversal in fortunes.

Analysts have now started giving it a higher weight in the overall valuation as compared to the company’s UK subsidiary, Jaguar Land Rover (JLR). The equity value of the India business comprising commercial and passenger vehicles now accounts for more than half the value in the SOTP calculations as compared to 0-30 per cent two years ago.

CLSA in May 2020 had assigned nil value to the India business. "JLR is the only driver of