TATAINVEST - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 2.8

📊 Core Financials Analysis

Profitability & Returns

ROE: 1.02% and ROCE: 1.21% are extremely low — indicating poor capital efficiency.

EPS of ₹61.7 is decent, but not enough to justify the high price of ₹6,718.

PAT dropped 37.6% QoQ (₹37.7 Cr. vs ₹19.6 Cr.), showing earnings volatility.

Debt & Liquidity

Debt-to-equity ratio of 0.00 — completely debt-free, which is a positive.

Dividend yield of 0.40% is minimal, offering limited income for investors.

📉 Valuation Indicators

Metric Value Insight

P/E Ratio 109 Extremely overvalued vs. industry PE of 26.1

P/B Ratio ~1.09 Fairly valued on book basis

PEG Ratio 8.15 Indicates overvaluation relative to growth

Intrinsic Value Likely below CMP Due to weak returns and high valuation multiples

🏢 Business Model & Competitive Advantage

Business Model: Tata Investment Corporation is a holding company investing in equities, debt instruments, and other financial assets — essentially a portfolio play on Tata Group companies.

Strengths

Exposure to high-quality Tata Group businesses.

Low debt and stable asset base.

Weaknesses

Passive investment model with limited operational upside.

Very low ROE/ROCE and high P/E make it unattractive from a fundamental standpoint.

📌 Entry Zone & Investment Guidance

Entry Zone: ₹5,600–₹5,900 range would offer better margin of safety, especially near 52-week low.

Long-Term View

Suitable only for conservative investors seeking indirect exposure to Tata Group.

Avoid fresh entry at current levels due to valuation excess and weak return metrics.

Hold if already invested, but expect modest returns and low growth.

Would you like a comparison with other holding companies like Bajaj Holdings or Mahindra & Mahindra Financial Services to explore better alternatives?

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