SBI Securities - Tata Technologies IPO Note

Valuation: At the upper price band of Rs 500, Tata Technologies is trading at 32.5x FY23 P/E multiple. Its peers are trading at a relatively expensive valuation with FY23 P/E multiple of 108.9x for KPIT, 68.5x for Tata Elxsi, and 40.1x for LTTS. We believe Tata Technologies is well placed to encash the growth opportunities in the ER&D space and looking at the relatively cheaper valuations, we recommend investors to SUBSCRIBE to the issue.