Check Before You Invest : Tata Investment Corporation Ltd

BSE: 501301 NSE: TATAINVEST ISIN: INE672A01026

| Sector: BFSI | Industry: Finance - NBFC

Snapshot

Q.1 Which industry/sub-sector does Tata Investment Corporation Ltd belong to?

Tata Investment Corporation Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Tata Investment Corporation Ltd a good quality company?

Tata Investment Corporation Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Tata Investment Corporation Ltd undervalued or overvalued?

Tata Investment Corporation Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Tata Investment Corporation Ltd a good buy now?

Tata Investment Corporation Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of Tata Investment Corporation Ltd?

Tata Investment Corporation Ltd Operating Income growth is 14.22% for FY-2025, which is below its 5-year CAGR of 19.77%, indicating slower growth.

Q.2 Return on Assets of Tata Investment Corporation Ltd?

Tata Investment Corporation Ltd Return on Asset is 0.8%, which is below its 5-year historical median of 1.1%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	76.7	79.52
PPOP%	13.73	13.73
RoA%	0.8	1.1

Q.3 Return on Equity (ROE) of Tata Investment Corporation Ltd?

Tata Investment Corporation Ltd Return on Equity is 0.9% for FY-2025, which is below its 5-year historical median of 1.2%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Tata Investment Corporation Ltd?

Tata Investment Corporation Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 13.73% for FY-2025, which is in line with its 5-year median(13.73%), indicating stable margins.

Q.5 Net Profit Margin of Tata Investment Corporation Ltd?

Tata Investment Corporation Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 76.7% for FY-2025, which is below its 5-year median( 79.52%), indicating decreasing margins.

Q.6 Total Asset growth of Tata Investment Corporation Ltd?

Tata Investment Corporation Ltd Total Asset growth is 6.04% for FY-2025, which is below its 5-year CAGR of 33.1%, indicating slower growth.

Q.7 Capital Adequacy ratio of Tata Investment Corporation Ltd?

Tata Investment Corporation Ltd Capital Adequacy ratio (CAR) is 102.98% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Tata Investment Corporation Ltd?

Promoters hold 73.38% of the Tata Investment Corporation Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Tata Investment Corporation Ltd vs Industry Peers?

Tata Investment Corporation Ltd AUM CAGR is 33.1%, compared to the 5-year industry median CAGR of 9.9%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Tata Investment Corporation Ltd vs industry peers

Tata Investment Corporation Ltd profit metrics are in line with the industry median level of 7.31%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	76.7	15.95
PPOP%	13.73	4.54
RoA%	0.8	1.45

Q.3 Operating efficiency of Tata Investment Corporation Ltd vs industry peers?

Tata Investment Corporation Ltd ROCE (1.2) is below the industry median of (4.4); while the current ROE (1.2) are below than the 5-year average Industry ROE (2.7). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	76.7	15.95
PPOP%	13.73	4.54
RoA%	0.8	1.45
ROCE%	1.1	4.4
ROE%	0.9	2.7

Valuation & price assessment

Q.1 Stock return of Tata Investment Corporation Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 30.6% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	30.6%	47.6%	49.4%	21.5%

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	103.99	64.65	28.96
Price to Book	1.26	0.79	1.11
Price to Sales	89.28	55.39	9.10
EV to EBITDA	94.01	60.76	11.77

Q.4 Valuation ratios of Tata Investment Corporation Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 1.26% is higher than its historical median of 0.79%, indicating that at the current price the stock is overvalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Tata Investment Corporation Ltd return on invested capital (ROIC) is 0.93% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 11.25%, indicating value erosion.

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