This Tata group stock which deals in engineering services by offering Digital Solutions and Product Development is in focus after the company signed an MoU with the Department of Industries & Commerce, Government of Tripura for an ITI upgrade project worth Rs. 95.65 crore.
Price Action
With a market capitalization of Rs. 38,149 Crores, the shares of Tata Technologies Limited were up by 0.70 percent in the day’s trade touching a day’s high of Rs. 955.50 per share. The stock reiterated from the day’s high and was trading at Rs. 936.90 per share 1.21 percent lower from the previous closing price of Rs. 948.40 apiece.
What Happened
Tata Technologies Limited has signed a Memorandum of Association with the Department of Industries and Commerce Government of Tripura, for the ITI Upgrade project for upgrading 19 ITI across Tripura worth Rs. 95.65 crore. The upgrade is planned in two phases.
Following the upgrade, six new long-term trades and 23 short-term courses will be launched systematically. The government will construct a total of 13,500 square feet of new infrastructure in each ITI to support this initiative. The Memorandum of Agreement lasts for 5 years and 9 months, with an additional 5-year extension with added scope and associated commercials.
About the Company
Tata Technologies, a subsidiary of Tata Motors and under the Tata group, specializes in engineering and product development services across industries like aerospace, automotive, and industrial machinery.
The company was founded in 1989 and headquartered in Pune. They offer end-to-end solutions, including digital transformation and electric vehicle engineering.
With operations in over 20 countries, Tata Technologies leverages a global delivery model to provide cost-effective solutions while focusing on innovation, sustainability, and enhancing client competitiveness in the rapidly evolving manufacturing landscape.
Products and services
Tata Technologies offers a range of products and services which is primarily in engineering and digital solutions. Their key offerings include end-to-end electric vehicle engineering, embedded engineering solutions, and turnkey vehicle development across the automotive, aerospace, and industrial machinery sectors.
They provide digital transformation services such as digital twins, Industry 4.0 solutions, and connected vehicle platforms. Additionally, Tata Technologies specializes in maintenance, repair, and overhaul solutions for aerospace. Their expertise is benefits validation, product lifecycle management, simulation, and upskilling programs to improve manufacturing capabilities and drive innovation for clients globally.
Financials & Ratios
Its Revenue from operations grew by 2.15 percent year on year from Rs. 1,269.17 Crores in Q2FY24 to Rs. 1,296.45 Crores in Q2FY25, accompanied by profits of Rs. 160.38 Crores to Rs. 157.41 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 21.88 percent and a return on capital employed (ROCE) of 28.07 percent. It has reported a debt-to-equity ratio of 0.08.
Shareholding Pattern
As of September 2024, the shareholding pattern with promoters stake holding a major share of 55.22 percent in Tata Technologies, Foreign Institutional Investors (FII) holdings stood at 3.62 percent, Domestic Institutional investors (DII) standing at 3.58 percent, and public holdings standing at 37.58 percent.
Written by Santhosh S
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