Tata Investment's share price surged to ₹6,172.30, up 7.18% from the previous close of ₹5,755.30 as of 11.28 am on 25th February 2025. Tata Investment Corporation (TIC) is one of India's largest financial companies. It has a background of investing in listed and unlisted equity shares, debt securities, and mutual funds. TIC is in the spotlight of investors due to its stability, the Tata Group name, and a history of safe financial handling.
The stock began the day at ₹5,850 and reached an intra-day high of ₹6,344. The trading volume for the day was 938,891 shares, significantly more than its 20-day average volume of 169,059.
TIC shares today have shown resilience in a volatile market, beating its sector by 6.84%. Its beta of 0.85 shows relatively lower volatility than the broader sector in general. The stock is still responsive to economic fluctuations, with a 52-week range of ₹5,145.15 to ₹9,756.85.
TIC has been in a sound financial position, largely due to its minimal level of debt. The company's debt reduction policy has strengthened its balance sheet. Thus providing greater flexibility in terms of future investments.
Over the past five years, TIC has increased its profit at a compounded annual growth rate (CAGR) of 23.5%, indicating consistent business growth. However, its return on equity (ROE) is only 1.55%, which may concern return-seeking investors. Alternatively, the firm has a stable dividend payout, and hence it is suitable for income investors seeking a long-term investment.
The market capitalization of TIC is presently around ₹31,172 crore. The stock is presently at a price-to-book (P/B) ratio of 0.85, which is comparatively lower than its historical levels, suggesting a chance of undervaluation.
However, TIC's twelve trailing months (TTM) price-to-earnings (P/E) ratio of 93.10 is way above the industry average of 30.76. This means that investors are willing to pay a premium to buy TIC's shares, most likely due to its reputation and strong investment portfolio.
One of the events that will influence TIC's share price is Tata Capital's going public. TIC's share price appreciated 8% on the Tata Capital IPO news, which shows investors' optimism. The IPO could introduce new synergies in Tata Group.
In addition, TIC's diversified investment approach makes it a natural fit to exploit new trends in India's emerging economy. It has a spread of investments across several sectors, reducing the possibility of market declines.
Tata Investment Corporation is strong and poised for growth despite issues like a high P/E ratio and low ROE. Its sound financials, judicious investments, and link with Tata Group make it a safe bet for long-term investors. Thus, with changing market trends, TIC is set to exploit new opportunities, consolidating its position as a dominant player in India's investment market.