Marwadi Financial Services - Tata Technologies IPO Note

Considering the TTM Sept-23/ Annualized FY24 EPS of Rs 17.65/17.34 on a post-issue basis, the company is going to list at a P/E of 28.33x/28.84 x with a market cap of Rs. 2,02,834 mn, whereas its peers namely KPIT Technologies Ltd, L&T Technologies Services ltd and Tata Elxsi Ltd are trading at a P/E of 83.3x, 37.0x, 66.4x. We assign a “Subscribe” rating to this IPO as the company has deep expertise in the automotive industry and differentiated capabilities in new-age automotive trends – electric vehicles (“EVs”), connected, and autonomous. Also, it is available at a reasonable valuation as compared to its peers.