Tata Investment Corp shares more than double in three months, how long can the rally last?

Shares of Tata Investment Corporation have more than doubled in nearly three months. The stock hit a fresh all-time high today despite a correction in the broader market. Tata Investment Corporation stock rose 19.73 per cent intraday to a fresh high of Rs 2,618.2 today against the previous close of Rs 2,186.75 on BSE. It had hit a 52-week low of Rs 1,218 on June 6, 2022, translating into returns of 115 per cent in over three months.

The share of Tata Group's NBFC arm has zoomed 47 per cent in the last five sessions. The stock of Tata Investment Corporation is trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. In a year, the stock has risen 100 per cent and gained 88 per cent in 2022.

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The mid cap stock has zoomed 70 per cent in a month. Total 2.74 lakh shares of the firm changed hands amounting to a turnover of Rs 66.69 crore on BSE. Market cap of the firm rose to Rs 12,817 crore on BSE. Earlier, shares of Tata Investment Corporation opened lower at Rs 2,151 on BSE.

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Here' s a look at what analysts said about the outlook of stock after the huge upmove on counter.

AR Ramachandran, Co-founder & Trainer, Tips2Trades

"A very strong uptrend in financials led by Nifty Bank due to expectations of milder interest rate hikes has led to an excellent rally even in the NBFC space including Tata Investment Corporation. Investors should book profit in Tata Investment Corporation at current levels as the stock is technically very overbought. Levels only close to Rs 1,675- Rs 1,700 should be used to initiate fresh buy positions."

Manoj Dalmia, founder and director, Proficient Equities

"Tata Investment has given a huge move recently. Investors can wait for a small retracement for entry. There is a small retracement expected to Rs 2,299 levels which can be a good point to accumulate. Aggressive investors can even buy at current levels with a stop loss of Rs 2,229. We can expect a target of Rs 3,343 from the current levels."

Ravi Singh, vice President and head of Research, Share India

"Tata Investment Corporation has shown a massive rally on the back of its robust revenue from the higher dividend income, interest and profit on sale of investments. The stock is also witnessing potential surge in volumes on technical setup and the momentum indicators on daily and weekly chart are reflecting strong upside move ahead. The counter may touch the levels of  Rs 3,000 in near to medium term."

In Q1 of the current fiscal, net profit zoomed 67.05 per cent to Rs 89.94 crore against a profit of Rs 53.84 crore in the corresponding quarter of the previous fiscal. Sales zoomed 64.73 per cent to Rs 101.97 crore in the June quarter against Rs 61.90 crore in the June quarter of last fiscal. Profit before tax climbed 70.19 per cent YoY to Rs 97.28 crore in Q1 June 2022. Total expense climbed 88.4 per cent YoY to Rs 11.17 crore in Q1 June 2022.

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On a quarter-on-quarter basis, the firm reported a 346.57 per cent rise in net profit from Rs 20.14 crore in the March quarter. Sales zoomed 96.32 per cent from Rs 51.94 crore in Q4 of the previous fiscal.

Tata Investment Corporation Limited is an investment company. The company is engaged in the business of investment in listed and unlisted equity shares, debt instruments, and mutual funds companies in a wide range of industries. It invests in a portfolio of quoted and unquoted securities of companies, including Tata Companies, which are engaged in various businesses. Its primary sources of income consist of dividends, interest, and gains on the sale of long-term investments.

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The company also invests in units of mutual funds, bonds, and venture capital funds. The company's subsidiaries include Simto Investment Company Limited, Tata Asset Management Limited, Tata Trustee Company Limited, and Amalgamated Plantations Private Limited.