1:2 Bonus, 28 Dividend: Tata's NBFC Stock Up By Rs 1,850 In 5 Days, At Record High; 258% Surge In 6 Months

Tata Group-backed investment holding firm, Tata Investment Corporation has been the talk of the town once the billion dollars worth conglomerate got approval from Union Cabinet to build two semiconductor units. Tata Group is at the heart of India's semiconductor, and the impression was that its investment firm will fund the projects. However, Tata Investment has shunned the rumours of it funding the units. But that has not stopped the bull run in Tata Investment.

The fundamentals of Tata Investments are pretty stable with the exceptions of its priceo-to-equity ratio which is higher than the industry, and return on equity (RoE) which is quite less.

But Tata Investment stocks have been rising non-stop for the past five consecutive trading sessions, hitting back-to-back upper circuits.

On the back of continuous 5% upper circuits from February 29th to March 5th, Tata Investment shares have risen by a whopping Rs 26.52% or Rs 1,852.95 on BSE. Year-to-date, the stock has recorded more winning streaks with period profit bookings.

Mostly, Tata Investment has seen gains in 2024 so far and continues to be a multi-bagger. YTD, Tata Investment shares have doubled investors' money with gains of 107.56%. In the past six months though, the stock rallied by 258.11%. And in a year, the stock has skyrocketed by 335.27%.

Currently, Tata Investment is locked at its historic high. On March 5, 2024, the stock price is at Rs 8,838.50 apiece, at 5% upper circuits. From its 52-week low of Rs 1,735 apiece, Tata Investment has soared by more than 409% on the exchange.

Its market cap is at Rs 44,718.65 crore.

As per Trendlyne data, here are the key fundamentals for Tata Investment's share price:

- Stock Price rose 335.82% and outperformed its sector by 276.81% in the past year.

- Debt to Equity Ratio of 0.01 is less than 1 and healthy. This implies that its assets are financed mainly through equity.

- Mutual Fund Holding increased by 0.01% in the last quarter to 0.05.

- Interest Coverage Ratio is 29.78, higher than 1.5. This means that it can meet its interest payments comfortably with its earnings (EBIT).

The price to Earning Ratio is 129.87, higher than its sector PE ratio of 25.56.

- Return on Equity(ROE) for the last financial year was 1.28%, less than 10%, indicating an inefficient use of shareholder's capital to generate profit.

- Promoter Share Holding stayed the same in the most recent quarter at 73.38%.

- Promoter Pledges are zero.

Tata Investment funds a diversified portfolio of quoted and unquoted securities of companies, including Tata Companies, which are engaged in various businesses with a history of strong operating and financial performance.

Tata Investment Corporation Limited was promoted by Tata Sons Ltd., in 1937, under the name The Investment Corporation of India Limited. The Company remained a closely held company till 1959, when it became one of the few publicly held investment companies listed on the Stock Exchange, Mumbai. During the 1960s and 1970s, the Company's activities underwent a gradual transformation from assisting in the establishment of new ventures to acting as an investment company with a diversified portfolio of investments.

Although, Tata Investment has never carried a stock split, but it has paid dividends and bonus shares. Tata Investment first paid a bonus share in the ratio of 1:2 on August 22, 2005. That meant Tata Investment issued 1 bonus share on every two existing bonus shares.

Meanwhile, as the Trendlyne data, Tata Investment paid up to 28 dividends. In the last 12 months, the company has dividends of Rs 48 per share. It currently has a dividend yield of 0.54%.

During Q3 of FY24, Tata Investment reported revenue from operations of Rs 30.61 crore, rising from Rs 24.71 crore in Q3FY23, but down from Rs 113.71 crore in Q2FY24. Meanwhile, PAT stood at Rs 24.08 crore in Q3FY24 versus Rs 14.85 crore in Q3FY23 and Rs 113.24 crore in Q2FY24.

Disclaimer: The write-up highlights about the latest development and stock performance, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.