Shares of Tata Investment Corporation fell sharply in Monday’s trade, extending their losing run for the third straight session. The stock tanked 5.06 per cent to hit a day low of Rs 2,099 over its previous close of Rs 2,210.75. The scrip eventually settled 4.63 per cent lower at Rs 2,108.50. A total of 6,319 shares changed hands today on BSE, which was higher than the two-week average volume of 3,337 shares. Turnover on the counter stood at Rs 1.34 crore, commanding a market capitalisation (m-cap) of Rs 10,668.02 crore.
On the earnings front, 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.
Support on the counter could be seen at Rs 2,095, a technical analyst said; while another analyst hinted at a bearish stance. One more analyst opined that the stock may correct further in the near term.
“Tata Investment is witnessing selling pressure post the fabulous run seen in September 2022. Today, this counter plunged around 5 per cent and looks poised for further correction in the near term. Technically, it has breached the rising trend line support on the daily charts and follow-up selling can bring it towards the Rs 1,920-1,940-odd zone which is the previous swing low, and it also coincides with the 200-SMA. On the upside, Rs 2,230 followed by Rs 2,280 levels should now act as a sturdy hurdle for this counter,” said Sneha Seth, Derivatives Research Analyst at Angel One.
“From December 2022 till January 2023, the stock gave a return of 22 per cent. At current levels, it looks lucrative but one needs to look at the price action of the last month which failed to cross its previous swing of Rs 2,260. In addition, Rs 2,260 was one of the previous support which later turned out to be a resistance zone. From the indicator perspective, daily RSI has made an impulsive structure which is a matter of concern. That said, even daily MACD has made a negative cross and thus hinted at a bearish stance. As of now wait and watch and no fresh longs are advised,” said Jigar S Patel – Senior Manager, Technical Research Analyst at Anand Rathi Shares and Stock Brokers.
“Tata Investment Corporation looks bearish on the daily charts with strong support now at Rs 2,095. Investors should buy only if a daily close is above the resistance level of Rs 2,234. Targets will be Rs 2,395-2,460,” said AR Ramachandran from Tips2trades.
The stock traded higher than 200-day moving averages but lower than 5-day, 20-, 50- and 100-day moving averages. The counter’s 14-day relative strength index (RSI) came at 38.19. 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 46.08. The earnings per share (EPS) of the firm came at 47.98, slightly higher than the P/E ratio.
Tata Investment has a one-year beta of 1.01, indicating average volatility on the counter.
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 losses for the second straight session, dragged by banks, financials and energy stocks. At close, the 30-share BSE Sensex pack was down 311 points, or 0.51 per cent, at 60,692. The broader NSE Nifty index fell 100 points, or 0.56 per cent, down to close at 17,845.
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