Shares of Tata Investment Corporation rose sharply in Wednesday’s trade, extending their gains for the fourth straight session amid heavy volumes. The stock jumped 7.29 per cent to hit a day high of Rs 2,337.20 over its previous close of Rs 2,178.40. At today’s high level of Rs 2,337.20, the scrip has gained 11.93 per cent in four sessions. Yet, Tata Investment traded 19.03 per cent lower from its 52-week high of Rs 2,886.50, hit on September 15 last year.
Support on the counter could be seen at Rs 2,196, an analyst said.
A total of 13,000 shares changed hands today on BSE, which was around four times higher compared to Tata Investment’s two-week average volumes of 3,187 shares. Turnover on the counter stood at Rs 3.05 crore, commanding a market capitalisation (m-cap) of Rs 11,636.67 crore.
There were 3,774 buy orders on BSE against sell orders of 2,842 orders. On NSE, 3.36 lakh shares traded for a value of Rs 77.26 crore.
AR Ramachandran from Tips2trades said, “Rs 2,327 will be a strong resistance for Tata Investment on the daily chart. A close above this level could lead to Rs 2,619-2,740 in the coming days. Support will be at Rs 2,196.”
The stock was last seen trading higher than 5-day, 20-, 50-, 100- and 200-day moving averages. Tata Investment has a one-year beta of 0.99, as per data publicly available with Trendlyne, suggesting average volatility on the counter.
The counter’s 14-day relative strength index (RSI) came at 63.12. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 41.63.
In Q2 of the current fiscal, Tata Investment’s net profit jumped 28.93 per cent to Rs 86.19 crore against a profit of Rs 66.85 crore in the corresponding quarter of the previous year. The total income of the company increased by 18.27 per cent to Rs 96.02 crore in the September quarter as compared to Rs 81.19 crore recorded in the same period a year ago.
The company, in an exchange filing, said its board of directors would meet on January 17 to consider and approve the financial results for the third quarter and nine months that ended December 31, 2022.
Promoted by Tata Sons, Tata Investment is a non-banking financial company (NBFC) registered with the Reserve Bank of India (RBI). Earlier named The Investment Corporation of India, the company is primarily involved in investing in long-term investments such as equity shares and equity-related securities. As of September 30, promotors held a 73.38 per cent stake in the company.
The company also invests in units of mutual funds, bonds, and venture capital funds. The company’s subsidiaries include Simto Investment Company, Tata Asset Management, Tata Trustee Company, and Amalgamated Plantations.
Meanwhile, Indian equity benchmarks were trading slightly lower today amid a volatile session.
