Tata Investment shares surge 19%, hit record high; here’s why

Shares of Tata Investment Corporation Ltd gained 19% to a record high in early trade today after the company reported a 53% rise in consolidated net profit in Q3 from the year-ago period. Net profit rose to Rs 53.2 crore in the December 2023 quarter against Rs 34.5 crore in the December 2022 quarter. Consolidated revenue from operations climbed 36.87 percent to Rs 51.6 crore in the last quarter, the Tata Group firm said in an exchange filing on January 23. Revenue stood at Rs 37.7 crore in the year-ago period.

Tata Investment shares gained 19% to Rs 5750 against the previous close of Rs 4832.85 on BSE. Market cap of the firm rose to Rs 28,688 crore. It was the top gainer on BSE today.

The stock opened higher at Rs 4801. Tata Investment stock has surged 33.37% this year and risen 169% in the last one year. Total 1.05 lakh shares of the firm changed hands amounting to a turnover of Rs 56.27 crore on BSE.

The stock has a beta of 0.3, indicating low volatility in a year.

In terms of technicals, the relative strength index (RSI) of Tata Investment stock stands at 72, signaling it's trading in the overbought zone. Tata Investment stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) of the firm rose 40% to Rs 44.2 crore in Q3 on a year-on-year basis. EBITDA margins of the firm climbed to 87.36% from 83.91% in Q3FY23.

Earnings per share (EPS) climbed to Rs 10.5 in Q3 against Rs 6.8 in the December 2022 quarter.

Tata Investment Corporation is primarily involved in investing in long-term investments, such as equity shares and equity-related securities. The company’s activities primarily comprise of investing in listed and unlisted equity shares, debt instruments and mutual funds, and other of companies in a range of industries.

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