Tata Capital Unlisted Share Price, IPO, and Valuation

TATA Capital, a financial powerhouse under the esteemed TATA Group, stands as a symbol of trust and commitment in the financial landscape. From providing flexible and tailored loan solutions to nurturing wealth through innovative investment avenues, TATA Capital seamlessly integrates financial expertise with a deep understanding of the evolving needs of its customers. Whether home loans, personal loans, business loans, or wealth management services, TATA Capital diverse portfolio reflects its dedication to fostering growth and prosperity. TATA Capital Upcoming IPO is set to be launched in the ongoing FY24.

This allows investors to take the first mover advantage by investing in TATA Capital Pre IPO shares. TATA Capital Share Price is valued at ₹660 only & is available exclusively on the Planify platform. Investors can expect to gain exponential returns by investing in TATA Capital pre-IPO shares.

Before investing, Investors should consider studying the business model of TATA Capital. Through this article, investors can learn about TATA Capital’s Business Model, its Financial Performance in recent years & comparison with industry peers. A world of caution on valuation would also be presented before the investors.

TATA Capital Services can be divided into 5 sectors namely TATA Capital Financial Services Limited (TCFSL), TATA Capital Housing Finance Limited (TCHFL), and TATA Cleantech. Capital Limited (TCCL), TATA Securities Limited (TSL) & TATA Capital Private Limited (TCPL). Now let’s try to understand each of these models:

1. TATA Capital Financial Services (TCFSL): TCFSL’s main area of expertise lies in Retail finance, SME & Commercial Finance. The products offered by TCFSL include Auto loans, Construction Equipment and Commercial Vehicle Loans, Business Loans, Consumer Durable Loans, and loans against Securities and assets.

2. TATA Capital Housing Finance Limited (TCHFL): TCHFL primarily offers home loans & affordable housing finance loans, loans against property & loans to developers for constructing residential & commercial premises.

3. TATA Cleantech. Capital Limited (TCCL): TCCL is a Joint Venture between TCL & International Finance Corporation, Washington DC, USA. TCCL is registered with RBI as an Infrastructure Finance Corporation (IFC) & it deals in providing finance & advisory services to cash-flow-based renewable energy projects. 

4. TATA Securities Limited (TSL): TATA Securities currently operates as an AMFI registered Distributor, engaged in the business of distribution of Mutual Fund units. TATA Securities is also registered as a Depository participant with Central Depository Services (India) Limited & National Securities Depository Limited (NSDL) & is also registered with SEBI as a Research Analyst. 

5. TATA Capital Pte. Limited, Singapore: TCPL carries out the business of proprietary investments & fund management, either on its own or through subsidiaries.

Beyond financial services, TATA Capital's commitment extends to fostering a sustainable future through initiatives that prioritize environmental and social responsibility. This holistic approach aligns with the TATA Group's ethos of making a positive impact on society while delivering excellence in every financial endeavor.

A good business model is the cornerstone of sustainable success, seamlessly aligning value creation with profitability. It identifies a clear target market, addresses customer needs effectively, and outlines a revenue strategy that stands the test of time. Investors shall also pay attention to the financials of a company. This might help investors in their decision-making & also become a bit cautious about certain ratios where the stock might be over-valued.

Let's begin by assessing TATA Capital's Market Cap in comparison to its industry counterparts. With a robust market cap of Rs. 2.34 Lakh Cr., TATA Capital outshines its closest peer, L&T Finance Holding. The company's strong financial performance is evident in its expanding Operating Profit Margin, reaching an impressive 46.01%, 53.07%, and 71.56% in FY21, FY22, and FY23, respectively. The Net Profit Ratio follows a similar upward trajectory, standing at 42.85% and 55.62% over the last two years.

Additionally, TATA Capital exhibits a positive trend in Returns on Assets (RoA), indicating efficient asset utilization with RoA figures of 1.94 and 2.48 for the corresponding years. Investors will find encouragement in the company's healthy Return on Equity (RoE), recording 15.23% and 19.01% in the same period.

Despite these commendable performances, caution is warranted, especially in considering the Price to Book Value (P/BV) and Price to Earnings (P/E) ratios. TATA Capital's P/BV ratio is notably high at 15.2, approximately 12 times that of its peers, and a staggering 14 times higher than the industry average P/E of 1.5. Similarly, the P/E ratio is reported at 78.0, nearly 4 times higher than its nearest industry peer at 20.9. The industry P/E of 21.0 underscores the perception that the stock may be currently overvalued, urging potential investors to weigh the risks carefully.

All being said & done, as the TATA Capital unlisted share price reflects the strength of investor confidence, anticipation is building for TATA Capital Upcoming IPO. The trajectory of TATA Capital's unlisted shares hints at an exciting journey ahead, providing investors with a glimpse into the company's potential growth. The fact that TATA has just launched a spectacular IPO with TATA Tech. , getting listed at a premium of over 162% only solidifies investor’s interest further. Just a quick reminder for the investors as they get a chance to gain exponentially byb investing in TATA Capital Unlisted Shares, exclusively available on the Planify platform. Stay tuned for an opportunity to be part of TATA Capital's next chapter in the financial landscape.