Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

High Yield Experts

Senior Credit Analyst, Lucror Analytics

Trung Nguyen

Senior Credit Analyst

Credit

We view Tata Motors as “High Risk” on the LARA scale, primarily due to the structural challenges facing Jaguar Land Rover (JLR). These include diesel regulatory issues in Europe, collapsing sales and overcapacity in China, and Brexit. At the same time, India’s auto market seems to be in crisis, and consequently does not provide the group any diversification benefit. Leverage has been increasing rapidly as earnings decline. The group is small in terms of scale and product offerings compared to other major players, while the global market is becoming increasingly consolidated. Ongoing large capex to catch up with electric-vehicle development (as well as petrol, as diesel has fallen out of favour) will restrict Tata Motors' ability to generate FCF and delever. That said, JLR has a decent position in the premium (luxury) auto market, and Tata Motors India has a strong position in the domestic commercial vehicle market. We also view positively the Tata Group’s reputation. Our fundamental Credit Bias on Tata Motors remains "Negative", given the challenges facing the company in China and India, Brexit-related uncertainty and regulatory issues for diesel engines. We view Tata Motors’ corporate governance as “Moderate” on the LAGA scale, mainly due to: [1] its long operating history; [2] well-structured Board, with INEDs accounting for about half of the directors; and [3] the strong reputation of the controlling family.

   We view Tata Motors as “High Risk” on the LARA scale, primarily due to the structural challenges facing Jaguar Land Rover (JLR). These include diesel regulatory issues in Europe, collapsing sales and overcapacity in China, and Brexit. At the same time, India’s auto market seems to be in crisis, and consequently does not provide the group any diversification benefit. Leverage has been increasing rapidly as earnings decline. The group is small in terms of scale and product offerings compared to other major players, while the global market is becoming increasingly consolidated. Ongoing large capex to catch up with electric-vehicle development (as well as petrol, as diesel has fallen out of favour) will restrict Tata Motors' ability to generate FCF and delever. That said, JLR has a decent position in the premium (luxury) auto market, and Tata Motors India has a strong position in the domestic commercial vehicle market. We also view positively the Tata Group’s reputation.    Our fundamental Credit Bias on Tata Motors remains "Negative", given the challenges facing the company in China and India, Brexit-related uncertainty and regulatory issues for diesel engines.    We view Tata Motors’ corporate governance as “Moderate” on the LAGA scale, mainly due to: [1] its long operating history; [2] well-structured Board, with INEDs accounting for about half of the directors; and [3] the strong reputation of the controlling family. 

Tata Motors - Tear Sheet - Lucror Analytics

Tata Motors Ltd

Tata Motors - Tear Sheet - Lucror Analytics