TATAINVEST - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | TATAINVEST | Market Cap | 30,617 Cr. | Current Price | 605 ₹ | High / Low | 1,185 ₹ |
| Stock P/E | 91.9 | Book Value | 622 ₹ | Dividend Yield | 0.45 % | ROCE | 1.09 % |
| ROE | 0.93 % | Face Value | 1.00 ₹ | DMA 50 | 688 ₹ | DMA 200 | 707 ₹ |
| Chg in FII Hold | -0.15 % | Chg in DII Hold | 0.00 % | PAT Qtr | 37.0 Cr. | PAT Prev Qtr | 122 Cr. |
| RSI | 28.3 | MACD | -26.6 | Volume | 3,05,739 | Avg Vol 1Wk | 5,26,390 |
| Low price | 515 ₹ | High price | 1,185 ₹ | PEG Ratio | 7.69 | Debt to equity | 0.00 |
| 52w Index | 13.4 % | Qtr Profit Var | 7.72 % | EPS | 6.59 ₹ | Industry PE | 22.5 |
💰 Financials: Tata Investment Corporation (TATAINVEST) shows weak fundamentals with ROE at 0.93% and ROCE at 1.09%, reflecting poor efficiency in capital usage. Debt-to-equity ratio of 0.00 highlights a debt-free balance sheet, but profitability remains minimal. Quarterly PAT declined sharply from ₹122 Cr. to ₹37 Cr., indicating earnings pressure. Cash flows are largely dependent on investment income rather than core operations, making returns volatile.
📊 Valuation: Current P/E of 91.9 is extremely high compared to the industry average of 22.5, suggesting severe overvaluation. P/B ratio (~0.97) is fair relative to book value of ₹622, but PEG ratio of 7.69 signals stretched valuation relative to growth prospects. Intrinsic value analysis suggests the stock is trading far above its fair value, requiring caution for new entries.
📈 Business Model & Competitive Advantage: Tata Investment Corporation operates as an investment holding company, with exposure to Tata Group companies and other listed securities. Its competitive advantage lies in brand trust and diversified holdings. However, profitability is constrained by reliance on market performance rather than operational efficiency, limiting overall health.
📉 Entry Zone: Considering DMA 50 (₹688) and DMA 200 (₹707), accumulation is attractive only if the price dips below ₹540–₹560. Long-term investors should be cautious, as valuations are stretched and returns are highly market-dependent.
Positive
- Debt-free balance sheet (Debt-to-equity 0.00).
- Strong brand backing under Tata Group.
- Diversified investment portfolio across Tata companies and other securities.
- Dividend yield of 0.45% provides some income stability.
Limitation
- Extremely weak ROE (0.93%) and ROCE (1.09%).
- High P/E (91.9) compared to industry average (22.5).
- PEG ratio of 7.69 signals overvaluation relative to growth.
- Quarterly PAT decline from ₹122 Cr. to ₹37 Cr.
Company Negative News
- Decline in FII holdings (-0.15%).
- Sharp drop in quarterly profits raises concerns about earnings stability.
Company Positive News
- Stable dividend payout supports investor sentiment.
- Strong brand trust under Tata Group enhances credibility.
Industry
- Investment holding industry P/E at 22.5 indicates Tata Investment trades at a massive premium.
- Sector growth driven by equity market performance and dividend income.
- Returns highly dependent on market cycles and portfolio performance.
Conclusion
🔑 Tata Investment Corporation is a debt-free company with strong brand backing and diversified holdings. However, weak return ratios, sharp profit decline, and extreme overvaluation limit near-term attractiveness. Entry only around ₹540–₹560 offers a better risk-reward balance. Long-term holding is risky unless profitability improves and valuations normalize.