1:2 Bonus, Rs 401/Sh Dividend; Tata's NBFC Stock Falls On Big Update Related To Dividend Recommendations

Tata Investment Corporation, a funding company of Tata Group fell sharply on April 19 tracking a bearish market. Another reason for its nosedive is the postponement of its Q4 and dividend announcement date which was earlier scheduled on April 24.

At the time of writing, Tata Investment's share price traded at Rs 6795.40 apiece, down by 2.14% on BSE. The stock was near its intraday low of Rs 6651.00 apiece.

The stock's 52-week high and low are at Rs 9,744.40 and Rs 2,030.05 apiece respectively.

Despite the latest fall, Tata Investment shares have gained by a whopping 105% in six months. While the upside is even higher by 228% in a year. YTD, due to significant correction since mid-March, Tata Investment shares gain is now nearly 60%. Tata Investment touched a 52-week high of Rs 9,744.40 apiece which was recorded in early March due to anticipation of Tata Sons IPO.

As per the latest update, Tata Investment said, "The meeting of the Board of Directors of the Company scheduled to be held on April 24, 2024, inter alia, to consider and approve the Audited Standalone and Consolidated financial results of the Company for the financial year ended March 31, 2024; and recommending the dividend, if any, has been postponed to a later date."

Further, it added, "The Company shall inform the revised date of Board meeting in due course."

In 2023, Tata Investment paid a dividend of Rs 48 per share, followed by its all-time high dividend payout of Rs 55 per share in 2022. As per Trendlyne data, Tata Investment has delivered up to 28 dividends since September 2000. Its data showed that in two decades, Tata Investment has delivered a total of whopping Rs 401.1 dividend per share to its shareholders.

Apart from dividend payout, Tata Investment has carried 1 bonus issue. The company issued 1 bonus share on the existing 2 shares with an ex-date in August 2005. Bonus shares are free of cost and are additional shares on existing ones that investors hold.

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.

Meanwhile, Dividends are of two categories interim and final dividend. The latter is announced after the ending of a fiscal year, while also higher in amount compared to the interim dividend. Dividends are incentives which listed companies share from their respective profitability of that fiscal year.

It will be keenly watching the revised date for Q4 and dividend recommendations.

Tata Investment Corporation Limited (TICL) is a non-banking financial company. Earlier named The Investment Corporation of India, the company is primarily involved in investing in long-term investments such as equity shares and equity-related securities.

Tata Investment Corporation Limited was promoted by Tata Sons Pvt 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.

TICL has been rated by CRISIL since 1994 and has been assigned their highest rating of 'AAA' (pronounced triple A) representing the highest safety in payment of interest and principal amount, whose rating has been reaffirmed from year to year and is valid to date.

The Company's activities comprise primarily of investing in long-term investments in equity shares, debt instruments, listed and unlisted, and equity-related securities of companies in a wide range of industries. The major sources of income of the Company consist of dividends, interest and profit on sale of investments.