Check Before You Invest : Tata Technologies Ltd

BSE: 544028 NSE: TATATECH ISIN: INE142M01025

| Sector: IT & ITES | Industry: IT - Software

Snapshot

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

Tata Technologies Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Tata Technologies Ltd a good quality company?

Tata Technologies Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Tata Technologies Ltd undervalued or overvalued?

Tata Technologies Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Tata Technologies Ltd a good buy now?

Tata Technologies Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Tata Technologies Ltd?

Tata Technologies Ltd revenue growth is 1% for FY-2025, which is below its 5-year CAGR of 12.63%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Tata Technologies Ltd?

Tata Technologies Ltd Return on capital employed is 27.68% for FY-2025, which is in line with its 5-year historical median of 27.68%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of Tata Technologies Ltd?

Tata Technologies Ltd Return on Asset is 11.62%, which is in line with its 5-year historical median of 11.62%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Tata Technologies Ltd?

Tata Technologies Ltd Return on equity is 19.97% for FY-2025, which is in line with its 5-year historical median of 19.97%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Tata Technologies Ltd?

Tata Technologies Ltd Cash conversion cycle is 27 days, in line with its 5-year historical median of 27 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.89	0.92
ROE	19.97	19.97
ROCE	27.68	27.68
Cash Conversion Cycle	27 days	27 days

Q.6 Gross Profit margin of Tata Technologies Ltd?

Tata Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.1% for FY-2025, which is in line with its 5-year median of 20.1%, indicating stable margins.

Q.7 Operating Profit Margin of Tata Technologies Ltd?

Tata Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.07% for FY-2025, which is in line with its 5-year median of 18.2% indicating stable margins.

Q.8 Net Profit Margin of Tata Technologies Ltd?

Tata Technologies Ltd Net Profit Margin is 13.1% for FY-2025, is in line with with its 5-year median of 13.1%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	20.1	20.1
Operating Profit Margin	18.07	18.2
Net Profit Margin	13.1	13.1

Q.9 Debt to Equity ratio of Tata Technologies Ltd?

Tata Technologies Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.11, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Tata Technologies Ltd?

Tata Technologies Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

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

Promoters hold 55.18% of the Tata Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Tata Technologies Ltd vs industry peers?

Tata Technologies Ltd revenue CAGR is 12.63%, compared to the industry median CAGR of 10.86%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	1	10.9
Gross Profit Growth	0.1	19
Operating Profit Growth	-1	NAN
Net Profit Growth	-0.3	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.89	0.5
ROE	19.97	5.83
ROCE	27.68	6.79
Cash Conversion Cycle (days)	27.42	47

Valuation & price assessment

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

Over the last 1 year(s), the stock has delivered a CAGR of -10.13% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-10.1%

Q.3 Valuation ratios of Tata Technologies Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	44.43	50.60	47.37
Price to Book	6.62	8.25	2.63
Price to Sales	4.52	5.65	4.79
EV to EBITDA	22.35	26.73	16.48

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