Tata Investment Corporation Limited is a holding company that is primarily engaged in the business of investment in listed and unlisted equity shares, mutual funds, debt instruments, etc of various Tata Group companies associated with a wide range of industries.
Having a glance at the share price movements, the stocks of Tata Investment Corporation Limited rallied nearly 275 percent in the past six months from Rs 2,474 in September 2023 to the current share price level of Rs 9,292 per equity share. Year-to-date, the company’s stock has delivered returns of nearly 120 percent.
Listed below are some of the major factors leading to a bull run in the share prices of the company during the recent period:
Strong Q3 Results of Tata Group Companies
During the results season, the Tata Group Entities, some of which include Tata Motors Limited and Trent Limited, reported a stellar performance during Q3FY24, i.e., for the quarter ended December 2023.
Tata Motors Limited, a leading global automobile manufacturer, reported an increase in its operating revenues from Rs 1.05 lakh crores during Q2FY24 to Rs 1.11 lakh crores during Q3FY24, and the bottom-line numbers, during the same time horizon, rose from Rs 3,832 crores to Rs 7,145 crores.
In congruence with the pattern above, Trent Limited, engaged in retailing of apparel, footwear, accessories, etc, reported an increase in its operating revenues from Rs 2,982 crores during Q2FY24 to Rs 3,467 crores during Q3FY24, and the bottom-line numbers, during the same time horizon, rose from Rs 228 crores to Rs 371 crores.
Cabinet approval for Semiconductor Plants
Recently, the Union Cabinet approved two semiconductor plant proposals by the Tata Group spanning the establishment of a semiconductor fabrication facility in Gujarat and expects to draw an investment of Rs 91,000 crores.
Moreover, it received approval to establish a chip assembly and testing unit in Assam attracting an investment of Rs 27,000 crores.
Demerger move by Tata Motors
During the first week of March 2024, the Board of Directors of Tata Motors approved demerging the company’s business operations into two separate entities, i.e., passenger vehicles and commercial vehicle business. The decision is taken on the potential for synergies and delivering higher growth.
Post demerger, one entity would handle the commercial vehicles business and its related investments while the other would foresee the passenger vehicles business including electric vehicles, Jaguar and Land Rover (JLR), and other related investments.
IPO potential
After the IPO of Tata Consultancy Services (TCS) in the year 2004, the Tata Group came out with its first IPO in nineteen years by listing ‘Tata Technologies’ in November 2023.
Post the bumper IPO of Tata Technologies, the Tata Group is set to launch more IPOs soon, some of which include Tata Sons, Tata Autocomp Systems, Tata Play, Bigbasket, Tata Advanced Systems, etc.
Written by Amit Madnani
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