Shares of Tata Investment Corporation fell nearly 4 per cent on Wednesday after announcing quarterly results for the third quarter of current financial year (Q3 FY23). The stock slipped 3.74 per cent to close at Rs 2,227. Immediate support on the counter could be seen at Rs 2,100, an analyst said.
A total of 9,049 shares changed hands today on BSE, which was higher than Tata Investment’s two-week average volume of 6,193 shares. Turnover on the counter stood at Rs 2 crore, commanding a market capitalisation (m-cap) of Rs 11,267.57 crore.
Technical charts hinted that resistance on the counter could be witnessed between Rs 2,300 and Rs 2,500 levels.
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Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, “The stock has been in a consolidation zone for quite some time and is hovering in a slender range. In the recent period, the stock has seen some whipsaw moves but managed to sustain above the major moving averages on the daily chart. Considering the price action, the stock has stiff support around Rs 2,100 levels, breaching below which it may plunge to the swing low of the Rs 1,920-odd zone. On the contrary, a series of resistance could be seen from Rs 2300-2500 levels. A decisive breakthrough on either end could only dictate the near-term trend in the counter.”
AR Ramachandran from Tips2trades, said, “Tata Investment Corp has strong resistance at Rs 2,355. A daily close below Rs 2,166 today could lead to a sharp downtrend with targets of Rs 2,070-2,020 possible.”
The stock traded higher than 20-day and 200-day moving averages but lower than 5-day, 50- and 100-day moving averages. Tata Investment has a one-year beta of 0.99, indicating average volatility.
The counter’s 14-day relative strength index (RSI) came at 52.96. 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 48.22.
Q3 results
Tata Investment Corporation reported a 12.55 per cent decline in consolidated profit after tax (PAT) at Rs 34.74 crore for the third quarter that ended December 31, 2022. The company posted a consolidated PAT of Rs 39.73 crore in the same quarter last fiscal.
Consolidated total income during the quarter under review stood at Rs 37.69 crore as against Rs 50.97 crore in the year-ago period.
The firm, which is a systemically important non-banking financial company and has no activities other than those of an investment entity, said its total expenses during the third quarter stood at Rs 9.45 crore as compared to Rs 6.01 crore in the same period of the last fiscal.
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 December 2022, 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 extended their gains for the second straight session, led by strong buying in financials and metal stocks.
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