New Delhi, Feb. 17 -- Jauguar Land Rover's decision to phase out combustion engine vehicles in the coming decade and target double digit operating margin, earnings before interest and taxes (EBIT), will help improve the valuation of the parent company, Tata Motors Ltd, and reduce its automotive debt in the coming years, said analysts with brokerage firms.

"We appreciate the management taking the hard call to voluntarily move away from ICE technology in near future. We believe this would lead to significant improvement in investor confidence in JLR's ability to create a right to win in the future. This is likely to aid valuation rerating. We upgrade our multiple for JLR to 3.0x (earlier: 2.5x)," said Nishant Vyas and Pratit Vajani, resear...