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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 12.6% , indicating slower growth.
Q.2 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.3 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 below its 5 year median of 18.2% indicating decreasing margins.
Q.4 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 Historic Median
Gross Profit Margin 20.1 20.1
Operating Profit Margin 18.07 18.2
Net Profit Margin 13.1 13.1
Q.5 Return on Asset of Tata Technologies Ltd?
Tata Technologies Ltd Return on Asset is 11.62(x), which is in line with its 5 year historical median of 11.62(x), indicating stable asset utilization efficiency.
Q.6 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 historical median of 19.97%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Tata Technologies Ltd?
Tata Technologies Ltd Return on capital employed is 27.68% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Tata Technologies Ltd?
Tata Technologies Ltd Cash conversion cycle is 27 , above its historical median of 27 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.89 0.92
ROE 19.97 19.97
ROCE 27.68 27.68
Cash Conversion Cycle 27 27
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 0.01 , 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, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Tata Technologies Ltd?
Promoters hold 55.21% 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 2.48% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 5,168.5 23.6
Gross Profit 1,038.8 1.9
Operating Profit 932 1.2
Net Profit 677 0.8
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.89 0.45
ROE 19.97 4.09
ROCE 27.68 6.4
Cash Conversion Cycle 27.42 36

Valuation & price assessment

Q.1 Stock return of Tata Technologies Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 0% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - - -11.4%
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 measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 42.82 62.92 22.96
Price to Book 6.38 12.66 2.61
Price to Sales 4.36 8.36 4.40
EV to EBITDA 21.53 39.59 17.20

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