This Tata Group firm in 'phase of more stable growth, improving margins', says Systematix; shares price target
Tata Group stock: Brokerage Systematix estimates AUM and EPS CAGR of 23% and 37% over FY26-28E, respectively for this Tata Group firm.
- Apr 7, 2026,
- Updated Apr 7, 2026 9:08 AM IST
Shares of Tata Capital are set for a 30% upside, according to brokerage Systematix. The NBFC is transitioning into a phase of more stable growth, improving margins and stronger operating leverage, positioning it well to deliver sustainable earnings growth over the medium term.
Meanwhile, Tata Capital shares ended on a flat note at Rs 307.95. Market cap of the firm stood at Rs 1.30 lakh crore. The stock trades near its 52 week low of Rs 300.30 reached on April 2, 2026. The stock hit an all-time high of Rs 367.65 on January 20, 2026.
The stock is in bear grip as the scrip trades below the 5 day, 10, day, 20 day, 30 day, 50 day and 100 day simple moving averages.
"Tata Capital represents a well-diversified NBFC franchise backed by strong parentage from Tata Sons, a broad product suite, extensive distribution, and a CRISIL AAA credit rating. While profitability metrics currently trail leading peers, we expect operating leverage, NIM expansion, and lower credit costs to drive a gradual improvement in ROAs," said Systematix.
The brokerage estimates AUM and EPS CAGR of 23% and 37% over FY26-28E, respectively.
It initiated covertage with a BUY rating and a target price of Rs 400, valuing the company at 2.7x FY28E P/ABV.
The brokerage says FY27/FY28 PAT estimates are 5-8% ahead of consensus largely driven by lower Credit cost and higher growth, as we believe the street remains conservative despite the company’s solid execution track record and clear levers for ROA improvement.
Tata Capital cited prolonged global tensions impacting economic activity, sharp crude price increases affecting asset quality in the vehicle finance segment and rising competitive intensity across retail lending markets as key risks to its assumptions.
Shares of Tata Capital are set for a 30% upside, according to brokerage Systematix. The NBFC is transitioning into a phase of more stable growth, improving margins and stronger operating leverage, positioning it well to deliver sustainable earnings growth over the medium term.
Meanwhile, Tata Capital shares ended on a flat note at Rs 307.95. Market cap of the firm stood at Rs 1.30 lakh crore. The stock trades near its 52 week low of Rs 300.30 reached on April 2, 2026. The stock hit an all-time high of Rs 367.65 on January 20, 2026.
The stock is in bear grip as the scrip trades below the 5 day, 10, day, 20 day, 30 day, 50 day and 100 day simple moving averages.
"Tata Capital represents a well-diversified NBFC franchise backed by strong parentage from Tata Sons, a broad product suite, extensive distribution, and a CRISIL AAA credit rating. While profitability metrics currently trail leading peers, we expect operating leverage, NIM expansion, and lower credit costs to drive a gradual improvement in ROAs," said Systematix.
The brokerage estimates AUM and EPS CAGR of 23% and 37% over FY26-28E, respectively.
It initiated covertage with a BUY rating and a target price of Rs 400, valuing the company at 2.7x FY28E P/ABV.
The brokerage says FY27/FY28 PAT estimates are 5-8% ahead of consensus largely driven by lower Credit cost and higher growth, as we believe the street remains conservative despite the company’s solid execution track record and clear levers for ROA improvement.
Tata Capital cited prolonged global tensions impacting economic activity, sharp crude price increases affecting asset quality in the vehicle finance segment and rising competitive intensity across retail lending markets as key risks to its assumptions.