Tata Investment Corporation Limited

Financial Services — Asset Management · NSE

₹613.65+₹2.70 (+0.44%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Tata Investment Corporation Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Tata Investment Corporation Limited is a publicly owned investment firm. The firm operates as an investment company in India.

IndustryAsset Management

SectorFinancial Services

Employees22

Annual revenue₹520 Cr

How does it make money?

Turns over ₹520 Cr a year. Of every ₹100 of sales, about ₹83 reaches shareholders as profit. Each of its 22 employees supports ₹23.65 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹23.65 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +70% while net margin moved +1% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+70%

Margin effect+1%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 104.4x is demanding — it needs sustained high growth to justify
✗ P/E is 709% above its own historical median of 12.9x — expensive by its own standards
✓ P/B of 1.06x is modest against book value

Quality vs. Valuation

Company Quality

78/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

29/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

104.4x

3Y Median

12.9x

40 monthly readings · mean 47.6x · range 4.9x–167.4x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 709% above its 3y median of 12.9x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 514% above the peer median of 17.0x.

vs. its own history

Expensive

12.9x median over 40 months · +709%

vs. sector peers

Expensive

17.0x median of 4 peers · +514%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

—

PEG

5.26

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 900% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 709% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 15% a year✓ 19.5% CAGR
Latest reported year was 4.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2Return on equity stays above 8%✗ 1.5%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 12.9x✗ 104.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 9 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹31,048 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

104.4x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.06x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹5.88

Profitable

Profitable on a per-share basis

ROE

1.5%

Weak

Weak capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

0.01x

Low

Conservative leverage

Revenue Growth (YoY)

4.1%

Modest

Modest growth

Profit Growth (YoY)

-1.8%

Falling

Profits are shrinking

Dividend Yield

0.55%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹279 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

91.7%

Good

Healthy core-business profitability

Net Margin

105.2%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.32

Defensive

Steadier than the market

52W Range Position

21%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

635.3 / 647.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

32.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹305 Cr	₹440 Cr	₹409 Cr	₹520 Cr	+19.5%
PAT (Net Profit)	₹252 Cr	₹385 Cr	₹312 Cr	₹434 Cr	+19.9%
EPS	₹49.78	₹76.09	₹6.17	₹8.57	-44.4%
ROE	1.3%	1.3%	1.0%	1.5%	—
Total Debt	₹242 Cr	₹0 Cr	₹2 Cr	₹1 Cr	-82.0%
Free Cash Flow	₹229 Cr	₹235 Cr	₹205 Cr	₹279 Cr	+6.7%

🟢 Revenue has grown at 19.5% a year over 3 years.

🟢 PAT (Net Profit) has grown at 19.9% a year over 3 years.

🔴 EPS has shrunk at 44.4% a year over 3 years.

🟡 ROE has held roughly flat at 1.5% over 3 years.

🟢 Total Debt has shrunk at 82.0% a year over 3 years.

🟢 Free Cash Flow has grown at 6.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹32,652 Cr

Total Liabilities

₹3,431 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹279 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

2.0%

Insider Holding

73.8%

Corporate Actions

Dividend Rate

₹3.4

Ex-Dividend Date

10 Jun 2026

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

1 positive3 mixed2 general

Tata Investment (NSEI:TATAINVEST) - Stock Analysis

Simply Wall Street, 15 Oct

Tata Investment Corporation share price rises 7% after Q1 results

Business Standard, 07 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Tata Investment Corporation shares fall 2.20%

Moneycontrol.com, 17 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Tata Investment standalone PAT rises 18% in Q1FY26 on dividend surge

scanx.trade, 04 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Tata Investment Corporation Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 06 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Tata Investment set 1:10 split date for Tata Investment stock

ad-hoc-news.de, 13 Oct

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Risk

MiddlingProfitability

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you.

2 of 3 tripwires tripped — Return on equity stays above 8%; Valuation vs its own median of 12.9x · see Key things to watch ↑