⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
TATAINVEST - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | TATAINVEST | Market Cap | 31,632 Cr. | Current Price | 626 ₹ | High / Low | 1,185 ₹ |
| Stock P/E | 94.9 | Book Value | 622 ₹ | Dividend Yield | 0.43 % | ROCE | 1.09 % |
| ROE | 0.93 % | Face Value | 1.00 ₹ | DMA 50 | 654 ₹ | DMA 200 | 689 ₹ |
| Chg in FII Hold | -0.15 % | Chg in DII Hold | 0.00 % | PAT Qtr | 37.0 Cr. | PAT Prev Qtr | 122 Cr. |
| RSI | 45.0 | MACD | -8.42 | Volume | 3,75,973 | Avg Vol 1Wk | 5,88,018 |
| Low price | 574 ₹ | High price | 1,185 ₹ | PEG Ratio | 7.94 | Debt to equity | 0.00 |
| 52w Index | 8.51 % | Qtr Profit Var | 7.72 % | EPS | 6.59 ₹ | Industry PE | 24.7 |
📊 Financial Overview
- Revenue & Profit Growth: Quarterly PAT fell sharply from ₹122 Cr. to ₹37 Cr., showing earnings weakness despite a small YoY profit variation (+7.72%).
- Margins: ROE at 0.93% and ROCE at 1.09% reflect very poor profitability and efficiency.
- Debt: Debt-to-equity ratio of 0.00 indicates no leverage, ensuring financial stability.
- Cash Flow: Supported by investment holdings, but earnings volatility raises sustainability concerns.
💹 Valuation Indicators
- P/E Ratio: 94.9 vs Industry PE of 24.7 → extremely overvalued compared to peers.
- P/B Ratio: Current Price ₹626 vs Book Value ₹622 → ~1.01x, indicating fair valuation relative to book value.
- PEG Ratio: 7.94 → signals overvaluation relative to growth prospects.
- Intrinsic Value: Estimated fair value near ₹580–600, suggesting current price is slightly overvalued.
🏦 Business Model & Competitive Advantage
- Operates as an investment holding company under Tata Group, with exposure to multiple Tata businesses.
- Competitive advantage lies in Tata Group backing and diversified portfolio.
- However, profitability is weak and dependent on performance of underlying investments.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive between ₹580–600, closer to intrinsic value.
- Long-Term Holding: Suitable for patient investors seeking exposure to Tata Group companies; hold for 5+ years with caution due to weak ROE/ROCE.
✅ Positive
- Debt-free balance sheet ensures financial stability.
- P/B ratio (~1.01x) indicates fair valuation relative to book value.
- Tata Group backing provides credibility and long-term stability.
⚠️ Limitation
- Extremely high P/E ratio (94.9) compared to industry average.
- Weak ROE (0.93%) and ROCE (1.09%) highlight poor efficiency.
- PEG ratio (7.94) signals overvaluation relative to growth.
📉 Company Negative News
- Quarterly PAT decline from ₹122 Cr. to ₹37 Cr. highlights earnings pressure.
- FII holdings decreased (-0.15%), showing reduced foreign investor confidence.
📈 Company Positive News
- DII holdings remained stable, reflecting domestic confidence.
- Debt-free status provides resilience against market volatility.
- Exposure to diversified Tata Group businesses supports long-term potential.
🏭 Industry
- Investment holding companies are valued based on underlying portfolio performance.
- Industry PE at 24.7 shows sector is moderately valued compared to Tata Investment’s premium.
- Market volatility and performance of Tata Group companies directly impact returns.
🔎 Conclusion
Tata Investment Corporation shows weak fundamentals with poor ROE/ROCE and declining quarterly profits, though debt-free status and Tata Group backing provide stability. Current valuations are stretched with a high P/E and PEG ratio. Entry around ₹580–600 offers better risk-reward. Long-term investors can hold for 5+ years to benefit from Tata Group exposure, but caution is advised due to earnings volatility and modest efficiency.