Tata Group firm posts 69% jump in Q4 profit, revenue surges 143%; declares dividend — do you hold?

Tata Investment Corporation Ltd reported a sharp rise in its March quarter performance, with net profit increasing 69.22 per cent year-on-year (YoY) to Rs 63.83 crore, compared with Rs 37.72 crore in the same period last year.

Revenue from operations more than doubled, rising 143.33 per cent YoY to Rs 39.98 crore from Rs 16.43 crore. Dividend income during the quarter stood at Rs 25.54 crore, while interest income was Rs 9.88 crore.

Total income increased to Rs 42.16 crore from Rs 16.61 crore a year earlier. Other income also rose to Rs 2.18 crore from Rs 0.18 crore.

On the expense side, total costs increased to Rs 11.69 crore from Rs 10.02 crore in the corresponding quarter last year.

Dividend

The Board has recommended a dividend of Rs 3.4 per share (340 per cent) on a face value of Re 1 per share, subject to shareholder approval.

"The Board of Directors have recommended a dividend of Rs 3.40/- (340 per cent) per Ordinary share of Re 1/- each, which shall be paid after the Annual General Meeting, subject to approval of the Shareholders of the Company at the ensuing Annual General Meeting," the company stated.

Technical setup

Technically, Tata Investment shares are trading above their 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day and 200-day simple moving averages (SMAs). The 14-day relative strength index (RSI) stood at 48.30, indicating the stock is neither in oversold nor overbought territory.

The scrip has a standalone/consolidated price-to-earnings (P/E) ratio of 109.63/49.39 and a price-to-book (P/B) value of 1. Earnings per share (EPS) stood at 6.59/14.62, with return on equity (RoE) at 0.91. According to Trendlyne data, the stock has a one-year beta of 0.96, indicating relatively average volatility.

Tata Investment shares ended 1.24 per cent higher at Rs 722.15 on Tuesday. At this level, the stock has gained 26.45 per cent over the past month.

Tata Sons holds a 68.51 per cent stake in Tata Investment and also maintains a significant majority share in Tata Capital. The company serves as the principal investment holding firm for the Tata Group.