Multibagger Tata Stock Hits Upper Circuit On Issuing Clarification On Semiconductor Plants

Mid cap Tata Group company from the Holding sector, Tata Investment Corporation Ltd shares today 5% upper circuit soon after the company issued clarification on news item published in a media group that it received nod to set up two semiconductor plants. Tata Investment Corporation shares witnessed stunning rally of 98% year-to-date and 242% in last 6-months only. The company has a market capitalisation of Rs 42,589.35 crore. Check details below:

Tata Investment Corporation Issues Clarification: As per the regulatory filing of the company dated March 4, 2024, "Tata Investment Corporation Limited (the Company) is a registered NBFC. The Company has not entered into any discussion for investment in any semi-conductor manufacturing or operating activity of the plant as referred to in the news article, as on date." Earlier, a leading media house carried news on March 1, 2024 with the headline, "Tata Investment Corporation Rises 5% As Group Gets Nod To Set Up 2 Semiconductor Plants".

Tata Investment Corporation Shares Performance & Return: Last trading price of Tata Investment Corporation shares is Rs 8417.65 apiece. The 52-week high price of Tata Investment Corporation shares on BSE is Rs 8417.65 apiece and 52-week low price is Rs 1735.00 apiece, respectively. Tata Investment Corporation has a PE of 144.96 and ROE of 1.19. Its EPS (TTM) is 55.31. Tata Investment Corporation stock gave return of 315% in last 1-year only and zoomed 542% in last 2-years. In last 3-years, Tata Investment Corporation Ltd shares gained 643% and 916% in last 5-years.

Why Tata Investment Corporation Ltd Shares Surging In Last Few Days? Tata Investment shares have been witnessing robust rally since the beginning of February month after report emerged that government bagged 9 bids from several companies that included Tata Group and Tower Semiconductor for overhaul of its Semiconductor Laboratory (SCL) in Mohali, as reported in Economic Times. It is worth mentioning that government has allocated approximately $1 billion for modernization of the 48-year old facility.

Tata Investment Corporation Dividend History: Tata Investment Corporation announced 28 dividends since September 4, 2000. In the last 12 months period, Tata Investment Corporation shares announced an equity dividend amounting to Rs 48.00 per share. If the current share price of Rs 8417.65 is taken into consideration, Tata Investment Corporation offers dividend yield of 0.57%.

Tata Investment Corporation Technical Analysis: The stock's RSI is 83.7, RSI above 70 is considered overbought. This implies that stock may show pullback. The Day Momentum score is 77.3. If the score is 77.3, stock is technically moderately strong. Stocks with score between 60 and 70 are considered as technically Moderately Strong. Day MFI is 95.0. MFI above 80 is considered strongly overbought. This implies that stock may show pullback. FII/FPI have increased holdings from 1.12% to 1.20% in Dec 2023 quarter. Number of FII/FPI investors increased from 79 to 82 in Dec 2023 quarter, according to Trendlyne.

Tata Investment Corporation Financials: The company declared its quarterly results on January 29, 2024. It announced a jump of 53% on-year in its consolidated net profit to Rs 53.2 crore for the quarter ended December 2023. The company informed its revenue from operations jumped 36.87% on year to Rs 51.6 crore and EBITDA soared 40% on-year to Rs 44.2 crore for the quarter under consideration. Its EBITDA margins rallied to 87.36% from 83.91% an year ago. Meanwhile, earnings per share (EPS) rose to Rs 10.5 in Q3 FY24.

About: 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, according to its official website.

Disclaimer: The stock highlights the rally in shares 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.

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