1 Bonus Share: From Rs 300-To-8,000, 1 Tata-Led NBFC Stock Hits New All-Time High, Gives 2,365% Returns

While the stock market held its special trading session on Saturday, there was one Tata Group-backed NBFC stock which created history by hitting a new lifetime high and only recording buyers in the shorter period of trading sessions. That means the stock had frozen to its upper circuit. But that's not all, this stock has journeyed from merely Rs 300 to more than Rs 8,000 since its first bonus issue, making many investors rich. It is none other than Tata Investment Corporation.

On BSE, Tata Investment shares froze at 5% upper circuit while hitting its all-time high of Rs 8,016.85 apiece. The market cap is at Rs 40,561.49 crore. With that, Tata Investment is currently up by 362% from its 52-week lows of Rs 1,735 apiece.

Notably, Tata Investment has been on a gaining spree for the past three consecutive sessions. On the previous day, the stock zoomed by 5% upper circuit, while on February 29, the stock was up by 4%.

The latest upbeat performance in Tata Investment comes after the Union Cabinet approved the establishment of three semiconductor units under the Development of Semiconductors and Display Manufacturing Ecosystems in India. Tata Group is at the heart of India's semiconductor mission. Of the three units, Tata Group's two companies received approval for semiconductor units with an investment of a whopping Rs 1,18,000 crore.

These are:

- Tata Electronics set up a semiconductor fab in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan. The fab will be constructed in Dholera, Gujarat. Investment in this fab will be Rs.91,000 crore. PSMC is renowned for its expertise in logic and memory foundry segments. PSMC has 6 semiconductor foundries in Taiwan.

- Meanwhile, Tata Semiconductor Assembly and Test Pvt Ltd ("TSAT") will set up a semiconductor unit in Morigaon, Assam. This unit will be set up with an investment of Rs.27,000 crore. TSAT Semiconductor is developing indigenous advanced semiconductor packaging technologies including flip chip and ISIP (integrated system in package) technologies.

How does this move make investors bullish on Tata Investment? Well, for starters, 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.

Following the bullish trend, Tata Investment has now given massive returns to its investors since August 2005, the time when it announced its first bonus issue. Tata Investment has paid bonus shares only once and has had no stock splits up till now. Further, it has been a dividend-paying stock. Since September 2000, Tata Investment has delivered 28 dividends payout.

How does 1 bonus issue by Tata Investment multiply their portfolio and increase their corpus?

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.

Let's suppose, you bought 500 shares of Tata Investment just a day before the ex-bonus date, at that time your investment was valued at Rs 1,62,965 at a share price of Rs 325.93 apiece as of August 19, 2005. After ex-bonus, on 500 shares you receive 250 bonus shares, taking your total shareholding to 750 shares in Tata Investment. On August 22, 2005, the share price of Tata Investment was Rs 325.30 apiece, which would result in your 750 shares aggregating at Rs 2,43,975

Assuming you did not modify your portfolio as of March 2, 2024. Then your 750 shares are now valued at Rs 60,12,637.5, and that is a multi-fold return since August 2005.

Since its ex-bonus date, Tata Investment shares have gained by a breathtaking 2,364.5%.

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.

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.

As per Trendlyne data, Tata Investment's weekly average delivery volume is 52.14%. The stock is trading above 8 out of 8 SMAs and above 6 out of 9 Oscillators in the bullish zone.

Disclaimer: The write-up highlights the latest 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.