TATAINVEST - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.2
| Stock Code | TATAINVEST | Market Cap | 33,793 Cr. | Current Price | 668 ₹ | High / Low | 1,185 ₹ |
| Stock P/E | 96.5 | Book Value | 570 ₹ | Dividend Yield | 0.51 % | ROCE | 1.29 % |
| ROE | 1.17 % | Face Value | 1.00 ₹ | DMA 50 | 674 ₹ | DMA 200 | 683 ₹ |
| Chg in FII Hold | 0.08 % | Chg in DII Hold | 0.01 % | PAT Qtr | 52.1 Cr. | PAT Prev Qtr | 37.0 Cr. |
| RSI | 44.8 | MACD | -3.19 | Volume | 2,50,808 | Avg Vol 1Wk | 3,65,507 |
| Low price | 539 ₹ | High price | 1,185 ₹ | PEG Ratio | 7.27 | Debt to equity | 0.00 |
| 52w Index | 20.0 % | Qtr Profit Var | 48.0 % | EPS | 6.92 ₹ | Industry PE | 29.9 |
📊 Core Financials
- Revenue & Profit: Quarterly PAT ₹52.1 Cr. vs ₹37.0 Cr. previous quarter, showing growth of 48% but overall earnings remain modest.
- Margins: ROE at 1.17% and ROCE at 1.29% reflect very weak efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.00 indicates no leverage, strong balance sheet stability.
- Cash Flow: Stable due to zero debt, though profitability scale is limited.
💹 Valuation Indicators
- P/E Ratio: 96.5 vs Industry PE of 29.9 — extremely high, signaling severe overvaluation.
- P/B Ratio: Price ₹668 vs Book Value ₹570 → ~1.17x, fairly valued relative to assets.
- PEG Ratio: 7.27 indicates stretched valuations relative to growth.
- Intrinsic Value: Current price appears overvalued compared to fundamentals.
🏢 Business Model & Advantage
Tata Investment Corporation functions as an investment holding company, with exposure to Tata Group businesses and diversified equity holdings. Its competitive advantage lies in brand trust and diversified portfolio, but profitability is modest and valuations are demanding.
📈 Technicals & Entry Zone
- RSI at 44.8 indicates neutral to slightly oversold conditions.
- MACD negative (-3.19) suggests short-term weakness.
- Entry Zone: Attractive accumulation around ₹620–₹650 range.
- Long-term Holding: Suitable for investors seeking exposure to Tata Group investments, but valuation risks must be monitored.
✅ Positive
- Zero debt-to-equity ratio (0.00).
- Quarterly PAT growth of 48% sequentially.
- FII holdings increased (+0.08%).
⚠️ Limitation
- Extremely high P/E ratio (96.5).
- Weak ROE (1.17%) and ROCE (1.29%).
- PEG ratio (7.27) signals stretched valuations.
📰 Company Negative News
- Profitability metrics remain very weak despite growth.
- DII holdings declined (-0.01%).
🌟 Company Positive News
- Quarterly PAT improved from ₹37 Cr. to ₹52.1 Cr.
- FII holdings increased (+0.08%).
- Strong brand backing from Tata Group.
🏭 Industry
Investment holding industry PE at 29.9 reflects moderate valuations. Demand is driven by exposure to diversified portfolios and group companies. However, profitability and returns depend heavily on underlying investments.
🔎 Conclusion
Tata Investment Corporation demonstrates stability with zero debt and diversified holdings, but profitability is weak and valuations are stretched. Long-term investors may consider accumulating in the ₹620–₹650 range, aligning with Tata Group exposure while being cautious of modest returns and high valuation multiples.
For broader context, you could explore a peer comparison or an industry outlook to complement this analysis.