TATATECH - Investment Analysis

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

Investment Rating: 3.8

📊 Fundamental Analysis Summary

Metric Value Interpretation

Market Cap ₹28,693 Cr Mid-cap, growth potential

Current Price ₹707 Near 52-week low (₹595)

Stock P/E 41.9 Slightly overvalued vs. industry PE of 31.8

PEG Ratio 2.67 High — suggests expensive relative to growth

ROE / ROCE 19.9% / 25.8% Excellent profitability

Dividend Yield 1.18% Modest, but consistent

Debt-to-Equity 0.07 Very low leverage — strong balance sheet

EPS (TTM) ₹16.9 Solid earnings base

FII/DII Change +1.77% / +0.83% Institutional buying — positive sentiment

📈 Technical & Trend Analysis

RSI (44.6): Slightly oversold — potential for bounce.

MACD (-3.66): Bearish crossover — short-term weakness.

DMA 50 / 200: ₹719 / ₹796 — trading below both, long-term bearish.

Volume: Slightly below average — low momentum.

Price Trend: Down 29% from 52-week high — correction phase.

🧠 Long-Term Investment Outlook

Tata Technologies is a digital engineering powerhouse with exposure to

Automotive, aerospace, and industrial clients

AI, IoT, and Industry 4.0 solutions

Global partnerships with JLR, Airbus, Honda, Ford

Growth drivers

Strong ROE/ROCE

Debt-free balance sheet

Expanding into high-margin verticals

Challenges

PEG ratio suggests overvaluation

Recent revenue and PAT decline

Technical indicators show bearish sentiment

🎯 Ideal Entry Price Zone

Based on valuation and support levels

Buy Zone: ₹645–₹685

Near key support and below 50 DMA

Offers margin of safety with upside potential

Avoid buying above ₹750, unless fundamentals improve or trend reverses.

🧭 Exit Strategy / Holding Period

If you already hold the stock

Holding Period: 3–5 years to benefit from digital transformation and global expansion.

Exit Triggers

Price > ₹850–₹900 — consider partial profit booking

PEG remains elevated without earnings growth

ROE/ROCE decline or margin compression persists

Hold if

Price stabilizes above ₹700 with volume support

Quarterly earnings rebound

Strategic wins in aerospace and embedded software materialize

Would you like a side-by-side comparison with KPIT or Tata Elxsi to evaluate sector peers?

Edit in a page