Stock P/E, Current Price, and Intrinsic Value Over Time
Competitors of Tata Investment Corporation Ltd
Stock Name
Market Cap
Current Price
High / Low
Stock P/E
Book Value
Dividend Yield
ROCE
ROE
Face Value
Industry Average
0 Cr
0
0
0
0%
0%
0%
0
Quarterly Result
Month
Dec 2020
Mar 2021
Jun 2021
Sep 2021
Dec 2021
Mar 2022
Jun 2022
Sep 2022
Dec 2022
Mar 2023
Jun 2023
Sep 2023
Dec 2023
Sales
27
31
62
89
51
52
102
107
38
31
152
124
51
Expenses
5
24
6
7
6
23
11
7
6
8
9
10
6
Operating Profit
22
7
56
82
45
29
91
100
32
22
143
114
44
OPM %
82%
23%
91%
92%
89%
56%
89%
94%
84%
73%
94%
92%
87%
Other Income
9
0
1
28
6
0
7
11
11
7
14
13
17
Interest
0
0
0
0
0
0
0
0
3
5
5
5
1
Depreciation
0
0
0
0
0
0
0
0
0
0
0
0
0
Profit before tax
31
7
57
109
51
29
97
111
39
24
152
122
60
Tax %
9%
59%
6%
8%
22%
30%
8%
4%
11%
18%
3%
-1%
11%
Net Profit
28
3
54
101
40
20
90
107
35
20
148
124
53
EPS in Rs
5.44
0.53
10.64
19.86
7.87
3.98
17.78
21.17
6.82
4.01
29.02
24.60
10.52
Last Updated: August 9, 2024, 6:40 pm
Quarterly Chart
Profit & Loss - Annual Report
Last Updated: August 9, 2024, 6:40 pm
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
TTM
Sales
201
218
229
247
270
158
177
144
163
254
277
344
Expenses
15
16
17
19
32
19
30
42
20
25
32
33
Operating Profit
186
202
213
229
237
139
147
102
144
229
246
311
OPM %
93%
93%
93%
92%
88%
88%
83%
71%
88%
90%
88%
90%
Other Income
0
2
0
0
0
8
0
0
25
18
36
46
Interest
0
0
0
0
0
0
0
0
0
0
8
18
Depreciation
0
0
0
0
0
0
0
1
1
1
1
1
Profit before tax
186
204
213
229
237
147
147
101
167
246
272
338
Tax %
13%
14%
14%
14%
16%
11%
9%
11%
8%
13%
8%
Net Profit
174
186
186
194
200
131
134
90
155
214
252
326
EPS in Rs
31.55
33.81
33.73
35.28
36.37
23.79
26.44
17.89
30.43
42.34
49.78
64.45
Dividend Payout %
51%
50%
50%
48%
49%
84%
76%
101%
79%
130%
96%
Profit & Loss Yearly Chart
YoY Net Profit Growth
Year
2013-2014
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
2019-2020
2020-2021
2021-2022
2022-2023
YoY Net Profit Growth (%)
6.90%
0.00%
4.30%
3.09%
-34.50%
2.29%
-32.84%
72.22%
38.06%
17.76%
Change in YoY Net Profit Growth (%)
0.00%
-6.90%
4.30%
-1.21%
-37.59%
36.79%
-35.13%
105.06%
-34.16%
-20.31%
Growth
Compounded Sales Growth
10 Years:
6%
5 Years:
17%
3 Years:
33%
TTM:
14%
Compounded Profit Growth
10 Years:
8%
5 Years:
24%
3 Years:
36%
TTM:
19%
Stock Price CAGR
10 Years:
29%
5 Years:
57%
3 Years:
79%
1 Year:
197%
Return on Equity
10 Years:
2%
5 Years:
1%
3 Years:
1%
Last Year:
2%
Last Updated: August 31, 2024, 2:04 am
Balance Sheet
Last Updated: August 9, 2024, 6:40 pm
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Equity Capital
55
55
55
55
55
55
51
51
51
51
51
51
Reserves
2,000
2,096
2,178
2,257
2,463
8,247
7,874
8,007
14,188
19,625
19,521
29,915
Borrowings
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
240
-0
Other Liabilities
117
123
125
14
19
1,564
1,554
122
647
1,314
1,277
2,905
Total Liabilities
2,172
2,274
2,358
2,326
2,537
9,866
9,478
8,179
14,886
20,990
21,089
32,870
Fixed Assets
13
14
14
14
14
14
14
15
14
16
15
14
CWIP
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
Investments
2,006
2,212
2,302
2,259
2,480
9,816
9,432
8,128
14,836
20,893
21,009
32,485
Other Assets
153
48
43
53
44
37
33
37
36
82
65
371
Total Assets
2,172
2,274
2,358
2,326
2,537
9,866
9,478
8,179
14,886
20,990
21,089
32,870
Reserves and Borrowings Chart
Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating ActivityÂ
104
84
92
90
68
67
92
117
86
122
230
235
Cash from Investing ActivityÂ
-70
-45
18
146
-78
41
496
12
3
4
-189
366
Cash from Financing ActivityÂ
-135
-103
-110
-225
-1
-119
-584
-123
-95
-122
-47
-495
Net Cash Flow
-101
-64
1
11
-11
-12
4
7
-6
4
-6
106
Free Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Free Cash Flow
186.00
202.00
213.00
229.00
237.00
139.00
147.00
102.00
144.00
229.00
6.00
Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)
Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.
Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.
Undervalued: 26.62% compared to the current price ₹7,133.00
Intrinsic Value: 11,671.12
Calculation basis:
Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.
This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.
Undervalued: 63.62% compared to the current price ₹7,133.00
Last 5 Year EPS CAGR: 29.22%
*Investments are subject to market risks
Strength and Weakness
Strength
Weakness
The stock has a low average Working Capital Days of -16.42, which is a positive sign.
The company has higher reserves (9,864.25 cr) compared to borrowings (20.00 cr), indicating strong financial stability.
The company has shown consistent growth in sales (223.50 cr) and profit (207.25 cr) over the years.
The stock has a low average ROCE of 4.33%, which may not be favorable.
The stock has a high average Cash Conversion Cycle of 12.08, which may not be favorable.
Stock Analysis
Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Tata Investment Corporation Ltd:
Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
ROE%: 1.28% (Industry Average ROE: 0%)
ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
Stock P/E: 98 (Industry average Stock P/E: 0)
Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
Total Debt / Equity: 0
Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions. Stock Rating:
About the Company - Qualitative Analysis
Tata Investment Corporation Ltd. is a Public Limited Listed company incorporated on 05/03/1937 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L67200MH1937PLC002622 and registration number is 002622. Currently Company is involved in the business activities of Trusts, funds and other financial vehicles. Company’s Total Operating Revenue is Rs. 253.38 Cr. and Equity Capital is Rs. 50.60 Cr. for the Year ended 31/03/2022.
Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Tata Investment Corporation Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE
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