Tata Group was founded in the year 1868 by Jamsetji Tata. One of India’s largest conglomerates, this company is owned by Tata Sons. The second biggest business house in India with the highest number of companies listed on the stock exchange.
This group boasts of several industry-leading companies like TCS, Tata Motors, Tata Steel, Tata Consumers, etc. This company has been run and managed by leaders and visionaries.
To name a few, this company boasts leaders like Jamsetji Tata, JRD Tata, and Ratan Tata. Moreover, it is one of the most socially conscious and responsible groups in the Indian business ecosystem.
Piotroski score, named after Stanford accounting professor Joseph Piotroski, is a number between ‘0’ and ‘9’ used to assess the strength of a company’s financial position. Financial investors use the score to find the best-value stocks.
Listed below are the Tata Group stocks that have a high Piotrowski score of up to 9:
Tata Motors Ltd
With a market capitalisation of Rs. 3,34,780 crores, the shares of the automobile company started Friday’s trading session on a higher note at Rs. 926 compared to its previous close of Rs. 925.
During the trading session, the shares hit a low of Rs. 906, making a loss of around 2 percent and closed the day at Rs. 915 apiece. The company has a Piotroski score of ‘8’.
Looking at the latest financial statement, the revenue increased by 5 percent from Rs. 1,05,128 crores during the September quarter to Rs. 1,10,577 crores in the December quarter. In addition, the net profits zoomed by 86 percent from Rs. 3,832 crores to Rs. 7,145 crores during the same timeframe.
Coming onto the important financial ratios, the return on equity showcased a transition from a negative RoE of 6.97 percent during FY21-22 to a positive RoE of 12.14 percent in FY22-23. On the other hand, the return on capital employed magnified from 1.07 percent to 9.96 percent during the same period. Furthermore, the net profit margin improved from a negative 2.94 percent in FY21-22 to a positive 4.14 percent during FY22-23.
Tata Power Company Ltd
With a market capitalisation of Rs. 1,25,243 crores, the shares of the power generation company started Friday’s trading session on a higher note at Rs. 412.90 compared to its previous close of Rs. 407.
During the trading session, the shares hit a low of Rs. 384, making a loss of around 5 percent and close the day at Rs. 392 apiece. The company has a Piotroski score of ‘8’.
Looking at the latest financial statement, the revenue increased by 4 percent from Rs. 15,213 crores during the June quarter to Rs. 15,738 crores in the September quarter. In addition, the net profits decreased by 11 percent from Rs. 1,141 crores to Rs. 1,017 crores during the same timeframe.
Due to consistent operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 11.80 percent during FY 21-22 to 14.87 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 8.51 percent to 10.90 percent during the same timeframe. Furthermore, the net profit margin increased from 6.13 percent during FY21-22 to 6.86 percent during FY22-23.
Trent Ltd
With a market capitalisation of Rs. 1,33,621 crores, the shares of the retail company started Friday’s trading session on a higher note at Rs. 3,800 compared to its previous close of Rs. 3,841.
During the trading session, the shares hit a low of Rs. 3,667, making a loss of around 3 percent and close the day at Rs. 3,759 apiece. The company has a Piotroski score of ‘8’.
The company reported a jump in both the prime indicators of business, viz, operating revenues as well as after-tax profits with the former taking a shift from Rs 2,982 crores during the September quarter to Rs 3,467 crores during the December quarter, and the after-tax profits, during the same period, increasing from Rs 228 crores to Rs 371 crores.
Due to consistent operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 1.55 percent during FY 21-22 to 11.55 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 7.15 percent to 11.36 percent during the same timeframe. Furthermore, the net profit margin increased from 0.77 percent during FY21-22 to 3.32 percent during FY22-23.
NELCO Ltd
With a market capitalisation of Rs.1,778 crores, the shares of the electronic company started Friday’s trading session on a higher note at Rs. 789 compared to its previous close of Rs. 788.
During the trading session, the shares hit a low of Rs. 765, making a loss of around 2 percent and close the day at Rs. 779 apiece. The company has a Piotroski score of ‘9’.
Looking at the latest financial statement, the revenue increased by 5 percent from Rs. 76.85 crores during the September quarter to Rs. 83.24 crores in the December quarter. In addition, the net profits improved by 9 percent from Rs. 5.69 crores to Rs. 76.15 crores during the same timeframe.
Due to consistent operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 19.48 percent during FY 21-22 to 20.15 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 17.99 percent to 21.58 percent during the same timeframe. Furthermore, the net profit margin increased from 6.18 percent during FY21-22 to 6.34 percent during FY22-23.
Written By Vaibhav Patil
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