Tata Investment shares surge 25% in 2 days: 2 key reasons behind the rally

Shares of Tata Investment Corporation Ltd extended their upward momentum for the second consecutive session on Wednesday, rising 11.73 per cent to hit a fresh 52-week high of Rs 9,100. Over the past two trading days, the stock has surged 25.01 per cent.

The rally was primarily driven by the company securing shareholders' approval for the stock split it had announced earlier. The investment firm approved the subdivision of each fully paid-up equity share with a face value of Rs 10 into 10 fully paid-up equity shares with a face value of Re 1 each. Tuesday, October 14, 2025, has been designated as the "Record Date" for this corporate action.

The second factor fueling the rally is the much-anticipated initial public offering (IPO) of the group's financial services arm, Tata Capital, expected in October 2025.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, recommended that existing Tata Investment shareholders remain invested with a long-term perspective but advised prudence for new entries at current levels.

From a technical standpoint, the stock was trading above its 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 87.14, indicating an overbought condition (values above 70 are considered overbought, while below 30 is oversold).

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher (PL), noted that the stock could retest Rs 9,757, its March 2024 peak, in the coming sessions, with support seen at Rs 7,650. He added that the RSI has turned highly overbought, so profit booking cannot be ruled out.

According to BSE data, the stock has a price-to-earnings (P/E) ratio of 133.37 against a price-to-book (P/B) value of 1.13. Earnings per share (EPS) are reported at 61.07, with a return on equity (RoE) of 0.85.

Tata Sons, holding a 68.51 per cent stake in Tata Investment, also maintains a significant majority share in Tata Capital. Tata Sons is the group's principal investment holding company.