Tata Investment share price target 2024, 2025, 2026, 2028, 2030

Tata Investment Corporation Ltd. (TATAINVEST), established in 1937, is a renowned financial services company in India. Headquartered in Mumbai and a subsidiary of Tata Sons Limited, TATAINVEST boasts a diverse portfolio including broking services, investment management, and wealth management solutions. Listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE), the company holds the valuable legacy of the Tata Group, which inspires significant investor confidence.

As the Indian financial landscape continues to evolve, investors seek clarity on the future potential of TATAINVEST. This analysis aims to shed light on the anticipated share price targets for the company across a significant timeframe (2024-2030), offering valuable insights for informed investment decisions.

Tata Investment Company Overview

Historical Evolution

TICL was incorporated on 1st April 1937 under the stewardship of Sir Dorabji Tata with an initial capital of INR 20 lakhs. It has grown into a premier investment firm managing assets over INR 9000 crores. TICL has navigated many economic cycles and market disruptions, consistently delivering superior long-term returns. It has also incubated and promoted various Tata Group financial services firms.

Financial Indicators

Market Cap: ₹36,108.09 Cr
P/E Ratio: 129.01
P/B Ratio: 1.53
ROE: 1.24%
ROCE: 1.33%
Debt to Equity Ratio: 0 (company has no debt)
Profit Margin: 83.70%

Income Growth (1 Year)	Income Growth (3 Year)	Income Growth (5 Year)
13.66%	24.41%	12.34%
Profit Growth (1 Year)	Profit Growth (3 Year)	Profit Growth (5 Year)
19.64%	26.63%	13.72%
ROE (%) (1 Year)	ROE (%) (3 Year)	ROE (%) (5 Year)
1.24%	1.14%	1.35%
ROCE (%) (1 Year)	ROCE (%) (3 Year)	ROCE (%) (5 Year)
1.33%	1.26%	1.48%

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Recent Developments

As of March 31, 2022, their portfolio had a book value of over Rs. 3,000 crores and an approximate market value of Rs. 20,700 crores, spread across 87 companies in various industries [Tata Investment Corporation Limited].

Role in the Financial Services Sector

Core Business Model

Tata Investment Corporation Ltd. (TATAINVEST) is a non-banking financial company (NBFC) under the Tata Group.
The company offers a range of financial products and services, including broking, distribution of financial products, investment management, and wealth management.
TATAINVEST has been experiencing strong growth in recent years, driven by factors such as:
- Increasing demand for financial products and services in India
- Expansion of the company’s product portfolio
- Growth in the digital distribution channel

Price: ₹7,136.65 (up 0.79% from the previous day)
52-week high: ₹7,136.65 (reached on February 26, 2024)
Recent performance: Strong – Up 312.52% from the 52-week low of ₹1,730

Technical Analysis

Overall:

Bullish trend: Most indicators point towards a bullish trend, with the stock price trading above key moving averages and several bullish candlestick patterns present.
Overbought: However, RSI and MFI are in the “strongly overbought” zone, suggesting a potential pullback in the near future.

Key Points:

Price: ₹7,136.65 (as of Feb 27, 2024)
52 Week Range: ₹1,730 – ₹7,306.50
Change: +0.79% today, +312.52% from 52-week low
Day Trendlyne Momentum Score: 76.8 (considered technically strong)
Moving Averages: Trading above all 8 moving averages.
Oscillators: Trading above 6 out of 9 oscillators in the bullish zone.
Beta: Very low volatility (0.05 for 3 months)

Shareholding Pattern of Tata Investment

Shareholder Type	Percentage
Promoters	73.38%
Domestic institutional investors	0.45%
Foreign Institutional Investors	2.18%
Public & Other	21.62%
Government Holding	0.50%
Corporate Holding	1.87%

Annual Results and Financial Performance

In-Depth Analysis of Recent Annual Results

Overall Performance:

Revenue: Tata Investment Corporation’s revenue increased modestly by 8.1% in FY2023 compared to FY2022, reaching ₹277.4 crore.
Net Income: Net income after taxes grew by 17.6% year-on-year, reaching ₹251.8 crore in FY2023. This increase was driven primarily by a significant rise in interest income, which outpaced the rise in interest expenses.
Profitability: Net profit margin improved from 84.4% in FY2022 to 90.9% in FY2023, indicating efficient use of resources to generate profit.

Key Highlights:

Interest Income: Interest income grew by 9.2% year-on-year in FY2023, primarily due to increased investments in long-term debt instruments.
Interest Expense: Interest expense surged by 8,971.4% year-on-year in FY2023. This significant increase is attributed to the company taking on short-term debt for the first time in FY2023.
Operating Expenses: Operating expenses saw a moderate increase of 27.9% year-on-year in FY2023.
Net Interest Margin (NIM): NIM improved slightly from 1.2% in FY2022 to 1.3% in FY2023.

Financial Position:

Long-Term Investments: Long-term investments grew significantly by 29.2% year-on-year, reaching ₹21,041.2 crore in FY2023. This indicates a strategic shift towards long-term investment strategies.
Total Debt: Total debt increased from ₹1.88 crore in FY2022 to ₹241.6 crore in FY2023, primarily due to the addition of short-term debt. However, the debt-to-equity ratio remains low, indicating a healthy financial position.
Cash and Cash Equivalents: Cash and cash equivalents decreased from ₹10.33 crore in FY2022 to ₹4.54 crore in FY2023. This suggests increased investment activity and potential use of short-term debt to finance operations.

Revenue: The company’s revenue grew by 13.66% year-on-year (YoY) in 2023 to ₹ 287.81 Cr.
Profit: Net profit increased by 19.64% YoY to ₹ 240.90 Cr. in 2023.
Profitability Ratios:
- PAT Margin: 83.70%
- ROE: 1.24%
- ROCE: 1.33%
Other Highlights:
- Strong promoter holding (73.38%)
- High debt-to-equity ratio (company has no borrowings, but this ratio is based on total liabilities)
- Low return on equity (ROE) and return on capital employed (ROCE)

Evaluation of Financial Health and Stability

Overall: Tata Investment Corporation shows a mixed bag of financial indicators, with some positive signs and some areas needing improvement.

Strengths:

Strong PAT Margin: The company boasts a high PAT margin of 83.70%, indicating efficient use of its resources and profitability.
Trading Below Book Value: The company is currently trading at a P/B ratio of 1.53, which suggests it might be undervalued compared to its book value.
Healthy Operating Income Growth: Operating income has grown steadily over the past 3 years, with a CAGR of 24.41%.
Profitable Growth: The company has delivered a decent profit growth of 19.64% in the last year and 26.63% over the past 3 years.
High Promoter Holding: Promoters hold a significant shareholding of 73.38%, which can be seen as a positive sign for long-term commitment.

Limitations:

Poor ROE and ROCE: The company has a concerning low ROE of 1.24% and ROCE of 1.33% for the past year. These ratios measure the company’s ability to generate returns on equity and capital employed, respectively. The low figures indicate a need for improvement in profitability and efficiency.
Increased Provisions: Provisions and contingencies have increased significantly by 32.88%, which might indicate potential risks or liabilities in the future.

tata investment share price target graph

Year	Target Price (₹)
2024 (Mid-year)	₹ 7,299 – ₹ 8,000
2024 (End-year)	₹ 8,000 – ₹ 9,000
2025	₹ 9,000 – ₹ 11,000
2026	₹ 11,000 – ₹ 13,000
2027	₹ 13,000 – ₹ 15,000
2028	₹ 15,000 – ₹ 18,000
2029	₹ 18,000 – ₹ 22,000
2030	₹ 22,000 – ₹ 28,000

Factors to Consider:

Market conditions: The overall stock market performance can significantly impact individual stock prices.
Company performance: The company’s future financial performance, including revenue, profitability, and growth, will directly affect its share price.
Industry trends: The growth prospects of the financial services industry, specifically the non-banking financial company (NBFC) sector, will influence the company’s valuation.
Interest rates: Changes in interest rates can impact the company’s profitability and borrowing costs.
Regulations: Regulatory changes in the financial services sector could impact the company’s operations and profitability

The share price of Tata Investment Corporation is expected to be in the range of Rs 8,000 – Rs 9,000 by the end of 2024. The company has exhibited steady growth in revenue and profits over the past few years. Its focus on diversifying the investment portfolio into high-growth sectors provides further upside potential. However, macroeconomic headwinds and volatility in equity markets pose downside risks.

By 2025, Tata Investment’s share price is estimated to reach Rs 9,500 – Rs 11,500 on the back of its stable business model and earnings growth visibility. Strategic initiatives to digitize operations and the positive outlook for India’s economy and financial services sector will act as catalysts. However, rich valuations may limit significant upsides.

The share price is projected to be within Rs 12,000 – Rs 14,000 in 2026. The growth trends are expected to sustain driven by diversification, margin expansion and favorable market conditions. The valuation gap with industry peers is also estimated to narrow. However, adverse regulatory changes or global risks could play spoilsport.

The target range for 2027 is Rs 14,500 – Rs 16,500 owing to the longevity of the business model and patient capital allowing long-term value creation. New product launches and digital transformation efforts will likely aid growth. But intermittent profit-booking at higher levels can induce volatility.

By 2028, the share price is envisioned to reach Rs 17,000 – Rs 19,500 levels on the back of steady double-digit earnings growth and benign interest rate scenario. Strategic portfolio rejigs and asset monetization can unlock value. But unforeseen events like governance issues or black swan events pose risks.

For 2029, the share price target stands at Rs 20,000 – Rs 23,000 based on the company’s financial stability, robust risk management and appetite for attractive but calculated investment risks. Expanding into global markets provides additional revenue streams. However, rich valuations may limit sharp upsides.

The long-term share price target for 2030 is estimated at Rs 23,000 – Rs 28,000 subject to consistent execution of the core investment-focused strategy. The valuations can rerate further given the longevity and parentage. But outcomes remain contingent on broader equity market conditions.

Comparative Analysis with Competitors

Company	Price (₹)	Market Cap (Cr)	P/E Ratio	ROE (%)	ROCE (%)
Tata Investment Corporation	7,136.65	36,108.09	129.01	1.24	1.33
Aditya Birla Capital	187.85	48,840.28	3.68	1.84	2.50
Sundaram Finance	4,198.80	46,650.29	5.48	8.50	11.53
L&T Finance Holdings	169.05	42,075.54	3.01	20.82	25.04
Indian Renewable Energy	154.90	41,633.48	5.11	8.17	11.96

Tata Investment Corporation Limited: SWOT Analysis

Strengths:

High PAT Margin: The company has a high PAT margin of 83.70%, indicating efficient use of resources and strong profitability.
Low P/B Ratio: The company is trading at a P/B ratio of 1.53, which is lower than the industry average, suggesting that the stock may be undervalued.
Promoter Holding: Promoters hold a significant 73.38% stake in the company, indicating long-term commitment and alignment with shareholder interests.
Profit Growth: The company has delivered substantial profit growth of 26.63% over the past 3 years.

Weaknesses:

Low ROE and ROCE: The company has a poor track record of ROE (1.14%) and ROCE (1.26%) over the past 3 years, indicating low returns on equity and capital employed.
Increasing Provisions: Provision and contingencies have increased by 32.88%, which could indicate potential future liabilities or expenses.

Opportunities:

Growth Potential: The company operates in the growing financial sector, which presents opportunities for future expansion.
Strong Parentage: Being part of the Tata Group can benefit the company from brand recognition, access to resources, and potential synergies.

Threats:

Market Volatility: The stock market is volatile, and the company’s share price could be affected by broader market movements.
Competition: The company faces competition from other established players in the non-banking financial sector.

Overall, Tata Investment Corporation is a company with a mix of strengths and weaknesses. The high PAT margin, low P/B ratio, and promoter holding are positive factors. However, the low ROE and ROCE, and increasing provisions are points of concern

Expert Opinions and Market Sentiments

Expert Opinions:

There is no recent analyst coverage available for Tata Investment Corporation. However, based on the financial ratios, analysts might have mixed opinions on the stock. The high profit margin, strong promoter holding, and good growth rates are positive signs. However, the low ROE and ROCE, and increase in provisions are negative factors.

Market Sentiments:

Market sentiments for Tata Investment Corporation Ltd. appear to be mixed. The stock is currently trading slightly higher, but the company’s low ROE and ROCE might be a concern for some investors. The recent increase in provisions and contingencies could also be a negative factor. However, the company’s strong PAT margin, healthy operating income growth, and profitable growth could

Catalysts for Growth or Potential Challenges

Catalysts for Growth:

Diversification: The Tata Group’s presence in various sectors allows them to capitalize on diverse growth opportunities. They can leverage their expertise and resources across different industries, mitigating risk and fostering cross-pollination of ideas.
Strong Brand Reputation: The Tatas have built a strong brand reputation for trust, reliability, and innovation. This brand image attracts talent, investors, and customers, creating a fertile ground for growth.
Focus on Innovation: The Tata Group emphasizes research and development, constantly innovating and adapting to evolving market trends. This focus on innovation ensures their investments remain relevant and competitive in the long run.
Global Presence: The Tata Group has a strong global presence, allowing them to access new markets and opportunities. This international reach diversifies their revenue streams and fosters knowledge exchange.
Strategic Acquisitions: The Tata Group has a history of successful strategic acquisitions, enabling them to expand their market share and gain access to new technologies and expertise.

Potential Challenges:

Managing Complexity: Managing such a diverse portfolio can be complex, requiring efficient resource allocation, effective coordination across various entities, and a robust risk management framework.
Economic Slowdowns: Economic downturns can impact various sectors simultaneously, posing a challenge for the Tata Group’s diversified portfolio.
Regulatory Environment: Navigating the evolving regulatory landscape across different sectors and geographical locations can be challenging for the Tata Group’s investments.
Competition: The Indian and global business landscape is fiercely competitive, requiring the Tata Group to constantly innovate and adapt to maintain their market position.
Execution Risks: Implementing ambitious investment plans and realizing their full potential can be challenging, requiring careful execution and risk mitigation strategies.

Comprehensive Risk Analysis

Market Risk: Fluctuations in the market value of investments can significantly impact Tata Investment’s portfolio and profitability.
Credit Risk: Potential defaults by issuers of debt instruments held by Tata Investment can lead to financial losses.
Liquidity Risk: Difficulty in selling assets quickly at a fair price can restrict Tata Investment’s ability to meet its financial obligations.
Regulatory Risk: Changes in government regulations and policies can affect Tata Investment’s business operations and profitability

Mitigation Strategies

Diversification: Spreading investments across different asset classes and sectors to reduce exposure to any single risk factor.
Hedging: Using financial instruments to offset potential losses from adverse market movements.
Strong risk management framework: Identifying, assessing, and monitoring potential risks, and implementing appropriate mitigation strategies.
Robust governance: Maintaining sound corporate governance practices and adhering to relevant regulations.

Conclusion

Investing in Tata Investment Corporation Ltd. (TATAINVEST) carries both potential and inherent risk. While the company exhibits positive trends in key areas like profit margins and promoter shareholding, its low ROE and ROCE raise some concerns. This article outlined potential future share price targets based on current information and estimations, ranging from ₹7,299 to ₹28,000 by 2030.

References and Citations

Company Website: https://tatainvestment.com/
Annual Reports: https://tatainvestment.com/annual-report/
Financial News: https://www.moneycontrol.com/india/stockpricequote/finance-investments/tatainvestmentcorporation/TIC

Disclaimer: This analysis of Tata investment share price targets is for informational purposes only, not investment advice. I’m not a SEBI-authorized expert. Data and analysis are based on public info and AI tools, but may not be fully accurate or timely. Market conditions and company performance can change, leading to actual results differing from projections. Always do your own research and consult a qualified financial advisor before making any investment decisions

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