Headquartered in Mumbai, the Tata Group is an Indian multinational conglomerate established in 1868. It is India’s largest conglomerate, with products and services in over 150 countries, and operations in 100 countries across six continents.
Listed below is one stock under Tata Group that is engaged in the EV sector, which has a low debt-equity ratio and is trading at a discount from its 52-week high:
Tata Chemicals Ltd
With a market capitalization of Rs. 24,470 crores, the shares of Tata Chemical Ltd started Monday’s trading session flat at Rs. 960.60. The share hit a high of Rs. 1,110 making a gain of around 1 percent and currently trading at Rs. 964 apiece.
The company touched its 52-week high in September 2023 at Rs 1,956.85, and, comparing the current stock price levels with the same, the stock portrays a discount of around 14 percent from the high levels mentioned.
Looking at the financial statement, the revenue decreased by 5 percent from Rs. 4,218 crores during the June quarter to Rs. 3,998 crores in the September quarter. In addition, the net profit declined by around 16 percent from Rs. 587 crores to 495 crores during the same timeframe.
Coming onto the important ratios, Coming onto the important ratios, the company has a low debt-to-equity ratio of 0.31 times which means that the business hasn’t relied much on borrowing to finance operations. Furthermore, the return on equity (RoE) was at 12 percent during FY 22-23 and the return on capital employed was recorded (RoCE) at 11.6 percent during the same period.
According to the latest shareholding pattern, the promoters hold a 37.98 percent stake in the company, the Public or Retail Investors have a holding of 26.92 percent, DIIs have a considerable stake of 20.91 percent, and the remaining 14.16 percent shares are with the FIIs.
Tata Chemicals is a Tata Group company that was incorporated in 1939. It is a multinational company that manufactures and exports basic and specialty chemicals for various industries like EVs, glass, detergents, pharma, biscuit manufacturing, bakeries, and other industries.
Written By Vaibhav Patil
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