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Unlisted Shares
TATA TECHNOLOGIES Essentials
As of July 27, 2024, TATA TECHNOLOGIES, Listed Shares are trading at ₹999.00 per share.
ISIN
An International Securities Identification Number (ISIN) is a code that uniquely identifies a specific securities issue. The numbers are allocated by a country's respective national numbering agency (NNA).
Face Value
Value of a security, as stated by its issuer. It has no relation with market price of the stock.
Total Share
Total shares or total number of shares outstanding represents the amount of stock on the open market, including shares held by institutional investors and restricted shares held by insiders and company officers.
Total Income
Gross income refers to the total income earned by an individual on a pay check before taxes and other deductions. It comprises all incomes received by an individual from all sources – including wages, rental income, interest income, and dividends.
Profit After Tax
It is the final profit left over after subtracting all operating and non operating items from net revenue.
EPS
It is the profit allocated to each outstanding share of common stock.
P/E
It is a valuation parameter that measures the company's current share price relative to its per-share earnings. Generally, high P/E is Overvalued & low P/E is Undervalued.
P/B
It shows the relationship between the current price and the book value of each share. A lower P/B ratio can mean that the stock is undervalued.
Market Capitalisation
Market capitalization is the aggregate valuation of the company based on its current share price and the total number of outstanding shares.
Enterprise Value
It measures companys total value, which includes market capitalization, debt and excludes cash.
Book Value
It calculates the per share value of a company based on its equity available to common shareholders
Intrinsic Value
Intrinsic value is the anticipated value of a company or stock determined through fundamental analysis. It is also referred to as the price a rational investor is willing to pay for an investment, given its level of risk.
Dividend Yield
It measures the amount of cash dividends distributed to equity shareholders relative to the market value per share.
Earnings Yield
Sector
A sector is an area in which businesses share the same or a related product or service. It can also be known as an industry or market that shares common operating characteristics
Sub-sector
Subsectors are the divisions of a sector. They are areas that vary from the rest of the sector substantially enough to justify creating a plan just for the subsector.
Category
Category is defined as a class or division of things regarded as having particular shared characteristics.
Cashflow - Operations
It indicates the amount of money a company brings in from its ongoing and regular operations over a fixed period of time.
Cashflow - Financing
It shows the net flows of cash that are used to fund the company, which include transactions involving debt, equity, and dividends.
TATA TECHNOLOGIES Growth
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Highlights
- Prominent Player in ER&D Segment - Tata Technologies Limited functions as a company specializing in product engineering and digital services, serving regions such as North America, Europe, and the Asia Pacific. The company is active in both the Service and Technology sectors, providing a range of services including IT consulting, SAP implementation and maintenance, networking, CAD/CAM engineering, design consulting, educational services, and the resale of third-party software applications.
- Revenue Growth - The company's revenue has experienced a substantial rise, climbing from ₹3,529 crore in FY22 to ₹4,414 crore in FY23, indicating a growth rate of 25.1%. Over the past five years, the company's revenue has consistently increased, achieving a compound annual growth rate (CAGR) of 10.4% from FY18 to FY23.
- Profitability - The company's profitability has consistently improved over time. The EBIT margin, which was 9.8% in FY18, has risen to 16.5% in FY23, reflecting a compound annual growth rate (CAGR) of 10.9%. Likewise, the net profit margin of the company has increased from 9.1% in FY18 to 14.1% in FY23, demonstrating a CAGR of 9.2% from FY18 to FY23.
- Key Stakeholders - Tata Technologies is an integral component of the Tata Group, which is among India's largest and most esteemed conglomerates. This affiliation provides the company with a robust brand image and grants it access to an extensive network of customers and partners. Tata Motors Limited holds the majority of shares, specifically 74.69%, in the company. TPG group is the lead investor in the share purchase agreement in Tata Technologies.
- Investment Thesis - When comparing Tata Technologies to its industry peers, it is reasonably valued with a P/E ratio of 56x, which is in line with the current industry average of 55x. Tata Motors, the parent company of Tata Technologies, has entered into share purchase agreements to divest a 9.9% stake in Tata Technologies at a valuation of ₹16,300 Cr ($2 billion). Under this agreement, the per-share price stands at ₹401.65, resulting in a P/E ratio of 27x, representing an attractive valuation.
- Stellar Returns - The company has delivered an impressive 10-fold return in the last three years. The upcoming IPO is expected to have a price range of ₹480 to ₹550, potentially leading to a higher P/E ratio, potentially reaching 35x. In this context, investors have the opportunity to take advantage of their holdings in the unlisted market, lock in profits, and contemplate reinvesting during the IPO when the P/E ratio is more attractive, offering a promising investment opportunity with potential undervaluation
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