Tata Motors’ share up by 5.35 per cent to a close of Rs 587 on October 8. A day earlier, the company had announced that State Bank of India had okayed a loan of Rs 1,300 crore (£175 million) to JLR.

However, a section of market analysts have advocated caution to investors. 'Any fund flow to JLR will have a positive impact on stocks,' said Navin Matta, an analyst with Dolat Capital Market. “Last year, there was a fund crunch, though that issue is getting addressed now. Tatas have money to run the business and, in the future, may look at refinancing their high-cost debt.

There is nothing much in terms of investment opportunity in this stock,' he said. Debt still high 'We have recently upgraded the price of the stock to Rs 560 and it went beyond that. If it goes higher from here onwards, there should be a cautious approach,' said Vaishali Jajoo, Senior Analyst, Angel Broking. JLR has borrowed Rs 3,700 crore from the likes of Standard Chartered Bank, Bank of Baroda and Burdale Financial, a subsidiary of the Bank of Ireland. As part of the revival plan, Tata Motors recently announced a shutdown of one of the two West Midland plants by 2014 and cost-cutting initiatives.