TATAINVEST - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | TATAINVEST | Market Cap | 36,403 Cr. | Current Price | 720 ₹ | High / Low | 1,185 ₹ |
| Stock P/E | 104 | Book Value | 570 ₹ | Dividend Yield | 0.38 % | ROCE | 1.29 % |
| ROE | 1.17 % | Face Value | 1.00 ₹ | DMA 50 | 665 ₹ | DMA 200 | 682 ₹ |
| Chg in FII Hold | 0.08 % | Chg in DII Hold | 0.01 % | PAT Qtr | 52.1 Cr. | PAT Prev Qtr | 37.0 Cr. |
| RSI | 63.8 | MACD | 26.3 | Volume | 10,40,294 | Avg Vol 1Wk | 8,81,464 |
| Low price | 539 ₹ | High price | 1,185 ₹ | PEG Ratio | 7.83 | Debt to equity | 0.00 |
| 52w Index | 28.0 % | Qtr Profit Var | 48.0 % | EPS | 6.92 ₹ | Industry PE | 25.5 |
📊 TATAINVEST (Tata Investment Corporation Ltd.) shows weak fundamentals despite strong Tata Group backing. ROE (1.17%) and ROCE (1.29%) are extremely low, reflecting poor efficiency. Valuations are highly stretched with a P/E of 104 compared to industry average of 25.5, and PEG ratio of 7.83 indicates overvaluation relative to growth. EPS of ₹6.92 is modest, and dividend yield of 0.38% provides negligible income support. Debt-to-equity ratio is 0.00, ensuring financial stability. Quarterly PAT growth (₹37 Cr → ₹52.1 Cr) shows improvement, but overall profitability remains limited. Technical indicators show moderate strength with RSI at 63.8 and MACD at 26.3, supported by volumes above average.
💰 Ideal Entry Price Zone: ₹600 – ₹675 (near long-term support and below current price).
📈 Exit / Holding Strategy: Suitable for short- to medium-term holding (1–3 years). Consider profit booking near ₹1,150–₹1,180 resistance unless earnings growth improves significantly.
✅ Positive
- Strong Tata Group backing ensures credibility.
- Debt-free structure (Debt-to-equity 0.00) provides financial stability.
- Quarterly PAT growth (+48%) shows operational improvement.
- FII (+0.08%) and DII (+0.01%) holdings increased slightly.
⚠️ Limitation
- Extremely high P/E of 104 compared to industry PE of 25.5.
- Weak ROE (1.17%) and ROCE (1.29%).
- PEG ratio of 7.83 indicates overvaluation relative to growth.
- Dividend yield (0.38%) offers negligible income support.
📉 Company Negative News
- Weak efficiency metrics despite strong brand backing.
- High valuation multiples may limit upside potential.
📈 Company Positive News
- Quarterly PAT growth highlights operational improvement.
- Minor FII and DII inflows reflect investor confidence.
🏦 Industry
- Investment holding companies benefit from exposure to diversified portfolios.
- Returns depend heavily on underlying investments rather than core operations.
🔎 Conclusion
TATAINVEST is a stable investment holding company but trades at unsustainable valuations with weak efficiency metrics. Long-term investors should avoid fresh entry until valuations normalize. Accumulation is only advisable near ₹600–₹675 for safety. Current holders should plan exits on rebounds toward ₹1,150–₹1,180, as long-term compounding potential is limited without significant earnings growth.