TATA Capital Unlisted Shares

A Comprehensive Overview of Tata Capital Unlisted Share Price & Journey

In the vast expanse of the Indian financial sector, certain names reverberate with a history of trust and reliability. Tata Sons Limited, one of the country’s premier business conglomerates, has consistently been at the forefront of driving excellence in numerous sectors. A notable subsidiary under its umbrella is Tata Capital.

Understanding Tata Capital’s Inception and Growth

Born out of the esteemed lineage of Tata Sons Limited, Tata Capital embodies the principles of trust and customer-centricity that the Tata Group is renowned for. As a one-stop financial solutions partner, Tata Capital is not just an entity; it’s a promise to its wide spectrum of retail, corporate, and institutional customers.

This promise transcends into various financial avenues, ensuring a comprehensive bouquet of services that cater to the diverse financial requirements of its clientele.

At the heart of Tata Capital’s offerings are its many specialized subsidiaries, each adeptly catering to a niche segment, ensuring that the needs of every customer, be it individual or corporate, are meticulously addressed.

Diving Deeper: A Closer Look at Tata Capital’s Services

Tata Capital Financial Services Limited: Operating under this subsidiary, Tata Capital offers a wide range of financial services. From corporate finance and commercial finance to leasing and rural finance, the company has covered a broad spectrum of services. This diversification ensures that no matter the financial need, Tata Capital is equipped to provide an effective solution.

Tata Capital Housing Finance Limited: Venturing into the real estate and housing sector, this subsidiary is where dreams of homeownership come true. It’s not just about providing home loans. Tata Capital recognizes the multifaceted needs of the housing sector, offering services like construction finance and even catering to the affordable housing segment, ensuring that everyone, irrespective of their income bracket, can own a piece of their dream.

Tata Cleantech Capital Limited: Recognizing the increasing global emphasis on sustainable and clean energy, Tata Capital, through this subsidiary, has established itself in the renewable sector. By providing both financing and advisory services, the company has positioned itself as a major player in promoting and enabling the shift towards renewable resources.

Tata Securities Limited: Diversifying further, Tata Capital has marked its footprint in the investment banking sector. This subsidiary offers services related to investment banking and also acts as a distributor for mutual funds and third-party financial products, specifically tailored for institutional customers.

Brief overview of TATA Capital’s product portfolio:

Consumer Loans: TATA Capital provides loans for various consumer needs, such as personal loans, home loans, auto loans, and two-wheeler loans. These loans are designed to help individuals fulfill their aspirations, whether it’s buying a home, a car, or funding other personal expenses.

Business Loans: The company offers business loans for small and medium-sized enterprises (SMEs) to support their growth and expansion plans. These loans could be used for working capital, business expansion, equipment purchase, and more.

Two-Wheeler and Auto Loans: TATA Capital provides financing options for purchasing two-wheelers and automobiles, making it easier for individuals to own their preferred mode of transport.

Home Loans: TATA Capital offers home loans to assist individuals in buying or constructing a house. These loans typically cover a significant portion of the property’s cost and can be repaid over an extended period.

Personal Loans: Personal loans from TATA Capital are unsecured loans that can be used for a variety of purposes, such as medical emergencies, weddings, travel, education, and other personal expenses.

Loan Against Property: Customers can avail loans by pledging their residential or commercial property as collateral. These loans are typically used for business expansion, debt consolidation, or other substantial financial requirements.

Business Working Capital Loans: TATA Capital provides working capital financing solutions to help businesses manage their day-to-day operational expenses and maintain a healthy cash flow.

Business Equipment Loans: This type of loan assists businesses in acquiring machinery, equipment, or tools necessary for their operations.

Loan Against Securities: Customers can leverage their investments in stocks, mutual funds, bonds, and other financial securities to secure loans for various needs.

Insurance Services: TATA Capital offers insurance products, including general insurance and life insurance, to provide financial protection against unexpected events.

Credit Cards: TATA Capital offers credit cards that come with different features and benefits, catering to various spending and lifestyle preferences.

Global Reach: Beyond Borders

While Tata Capital’s heart beats in Mumbai, where it’s headquartered, its influence is not limited to the Indian shores. Recognizing the global nature of finance and the interconnectedness of today’s world, the company has registered offices for its subsidiaries in international financial hubs like Singapore and London.

This global presence ensures that Tata Capital remains in sync with international financial trends, thereby offering its customers a world-class service.

Tata Capital Share Price: A Mirror to Its Success

The market’s faith in a company is often reflected in its share price. The Tata Capital share price, oscillating between INR 550 to 600 per share, offers insights into the company’s robust performance and the trust it enjoys in the market. While it’s not listed on the major stock exchanges, Tata Capital unlisted share price within this range is a testament to its stability and growth trajectory.

Current Tata Capital Unlisted Share Price:

The Tata Capital Unlisted share price is ₹525 with an AUM of ₹1,16,756 Crores.

Note: Check the Latest Tata Capital Unlisted Share Price at UnlisteZone Android or iOS Mobile App.

Financial Performance of Tata Capital Unlisted Share in FY21-22

1. Tata Capital Limited, registered with RBI as a Core Investment Company, primarily holds investment in its subsidiaries, mainly engaged in lending and offering a wide range of services and products in the financial services sector.

2. Tata Capital Finance Services Limited, Tata Capital Housing Finance Limited and Tata Cleantech Chemical Limited are the three main subsidiaries engaged in lending business.

3. Tata Capital reported the highest profit during FY22. The firm has achieved this by expanding Net Interest Margin (NIM), focused management of operating cost and tightening Credit policies.

4. PAT has increased to Rs. 1,801 Crore from Rs.1,245 Crore.

5. The Consolidated Net Interest Income and Other Income for the year was Rs. 5,364 crore. It was Rs. 4,775 crore in FY21, an increase of 12%.

6. NPA has decreased from 0.9% in FY21 to 0.6% in FY22.

7. The Return on Equity increased from 12.4% in FY 2020-21 to 15.3% in FY 2021-22.

8. Total loan Book stood at Rs. 90,121 Crore as on march 31st 2022, up by 22%.

9. Additionally, the book value has risen from 28.79 to 33.82.

Financial Performance of Tata Capital Unlisted Share in FY22-23

1. Highest-ever PAT of Rs. 2,975 Cr, displayed sharp growth of 80% Y-o-Y in FY23 driven by healthy Net Interest Margin (NIM)and other Revenue growth while keeping the operational and credit costs under check.

2. The Net Interest Margin (NIM) of FY23 is 7,023 Crore. It was 5,253 Crore in the previous year, y-o-y growth of 34%.

3. NPA has further decreased to 0.4%.

4. As on 31st March 2023, total Loan Book stood at 1,20,940 Crore , grew by 28%

5. Book Value has also increased from 33.82 to 48.36.

6. RoE is 17.3% in FY23 up from 15.6% in FY22

Valuation Risk in Tata Capital Unlisted Share

Tata Capital Unlisted Shares are currently being offered at a price range of INR 550 to INR 600 per share. As of 31st March 2023, the book value of Tata Capital stands at approximately INR 50 per share. This implies a Price-to-Book (P/B) ratio of more than 11x, which appears to be significantly higher compared to the common P/B ratios observed in the financial world of NBFCs, Banks, and SFBs, where listed shares typically trade at a P/B ratio below 5.

The elevated P/B ratio of Tata Capital raises concerns about the sky-high valuation of the stock. It is essential to exercise caution and prudence when considering an investment in this stock, especially given the discrepancy in valuation compared to industry norms. It is advisable to carefully assess the potential risks and rewards associated with investing in Tata Capital Unlisted Shares before making any decisions. 

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Q1FY25 Results of Tata Capital

Particulars (In Cr)	Q1FY25	Q1FY24
NII	4900	3672
Fees and Commission	317	145
Revenue from Operations	5372	3976
Employees Benefit Expenses	557	408
Other Expenses	445	282
Operating Profit	4370	3286
Other Income	5	3
Depreciation	78	67
Finance Cost	2903	2143
Provisioning	237	85
Profit After Provisioning	1155	985
Tax	284	260
PAT	871	725