107% Returns: Tata's NBFC Doubles Investors Money, Rs 53,440 Profits On Rs 50K; Key Parameters To Buy/Sell

Tata Investment Corporation, the NBFC giant of Tata Group, has continued to witness volatile trading sessions after the hopes for a Tata Sons IPO dulled. In a month, the stock has dipped at least 4.4% on BSE, but the temporary hiccups couldn't stop Tata Investments to still double investors' money in a six-month span. The latest price level is still cherries on the cake for investors who entered this NBFC stock 6 months ago or 1 year ago, or in the long term.

The next big sentiment driver for Tata Investment is its upcoming Q4 results and final dividend recommendations.

On BSE, Tata Investment's share price stood at Rs 6844.15 apiece, down by 0.64% on April 16th with a market cap of Rs 34,628.18 crore.

Broadly, Tata Investment has held between Rs 6,000 to Rs 7,000 levels, despite the possibility of Tata Sons not opting for an IPO which was the main cause of why sentiments dampened in Tata Investment, after it hit a new 52-week high of Rs 9,744.40 apiece in the first week of March 2024.

Tata Sons is the largest shareholder of Tata Investment, and the IPO was seen as good news among investors.

Nonetheless, Tata Investment is still up by 237.14% from its 52-week low of Rs 2,030.05 apiece. But in the short term, like six months, Tata Investment shares have gained by a whopping 107%. If an investor had bought Tata Investment shares for Rs 50,000, 6 months ago. Their investment value has recorded a return of Rs 53,440, more than doubling its corpus to Rs 1,03,440.

Six months ago, Tata Investment shares were merely at Rs 3,311.15 apiece. So, an investor would earn up to Rs 53,440 profit on just 15 shares (Rs 50,000/3,311.15). This is far better returns than traditional FD schemes.

YTD, the stock is up by 61%, while in a year, the shares have gained by 228.81%. In 5-years, the upside is whopping 705.55%.

In its regulatory filing this week, Tata Investment said, "The meeting of the Board of Directors of the Company is scheduled on April 24, 2024, inter alia, to consider and approve i. The Audited Standalone and Consolidated financial results of the Company for the financial year ended March 31, 2024 and ii. Recommendation of dividend, if any, on the equity shares of the Company for the financial year ended March 31, 2024."

This will be the first dividend announcement of 2024. Tata Investment has a long history of paying final dividends, and most likely the upcoming recommendation will be final as well for FY24.

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.

Meanwhile, in 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.

Critical Parameters of Tata Investment Shares For Making A Decision:

The following key parameters are as per the Axis Direct website on Tata Investment. They are both technical and fundamental parameters. Here are the details:

- In the last 1 year Tata Investment Corporation, has beaten the Nifty 500 by 192.6% (CAGR difference).

- In the last 1 year, the volatility of Tata Investment Corporation is Higher than the Nifty 500 volatility by 2.62%.

- For 8 out of the Last 12 Months, i.e. 67% of the time it has beaten Index returns.

- 3 out of the last 5 years, PAT Growth has been high.

- 5 out of the last 5 years, the ROE has been high.

- 5 out of the last 5 years, Debt - The equity ratio has been low.

- MF's shareholding in Tata Investment Corporation has increased by 101.99% in the past 1 Year

- FII shareholding in Tata Investment Corporation has increased by 86.88% in the past 3 Months

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.

Disclaimer: The write-up is just for information purposes, 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.