31 May 2018 Automobiles We assess liquidation value at ~INR256/share or ~10% downside from current level. This is after considering the intangible assets of JLR and India business at 35% of book value (based on 35% capitalization rate v/s JLRs 80%). While stocks have traded below their liquidation values in the past, barring any global macro events, we do not see TTMT sustaining at such levels for a long time. At ~INR256/share, TTMT would be valued at ~0.9x FY18 P/B, which is close to its floor P/B valuation of 0.9x in the last 10 years. Interestingly, even during the Global Financial Crisis (GFC) and worst financials ever for JLR (EBIT margin of -6.5% in FY09), similar health of India financials (EBITDA margins at 6.7% in FY09) and negative CFO, the bottom valuation for TTMT was at 0.9x in 3QFY09. Coincidentally, JLRs peers BMW (0.98x) and Daimler's (0.76x) bottom valuations are also around ~0.87x P/B (ex GFC).