22 November 2023
Tata Technologies Limited (TTL), a subsidiary of Tata Group, has a rich history of innovation and growth in the engineering services industry.
Tata Technologies has delivered an impressive 10-fold return in the last three years. Looking back three years, TATA Tech. shares were available for just Rs. 90-100 in the pre-IPO market. In the 3 years, the stock soared to a high of Rs. 1000+levels, delivering remarkable returns between 500% to 1100%, depending upon the tenure of investment. For the past year, we had given the sell call for the investors so that they would be able to lock in the profits because the IPO price was expected to be low.
When comparing Tata Technologies’ unlisted share price to its industry peers, it was reasonably valued with a P/E of 56x, which was in line with the current industry average of 55x. However, based on our analysis in relation to the listed world, the band was expected to release at a lower P/E. The announced IPO price band ranges from ₹475 to ₹500, leading to a P/E ratio of 32.5x, offering an undervalued investment opportunity for the investors.
As per the GMP anticipations the Tata Technology stock is expected to get listed at a premium of 10% – 20%, which describes the potential of the investment opportunity.