The rally in the shares of Tata Investment Corporation Ltd continued as the stock hit fresh new high for the third straight session on Thursday. The counter rose more than 7% on the BSE in early deals to record high of ₹2,886 per share with a market cap of ₹14,227 crore.
The Tata Group stock has turned into a multibagger stock in the last three months by surging more than 110% during the period, from ₹1,300 level in mid June this year, to doubling in value to ₹2,880 currently. In a year’s period, Tata Investment shares are up about 119% as compared to over 2% rise in benchmark BSE Sensex.
Promoted by Tata Sons, Tata Investment Corporation Limited (TICL) 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.
The company’s activities comprises primarily of investing in long term investments in equity shares, debt instruments, listed and unlisted, and equity related securities of companies in a wide range of industries. The major sources of income of the company consist of dividend, interest and profit on sale of investments.
For the first quarter ended June 2022 or Q1 FY23, Tata Investment Corporation reported a 66.5% increase in consolidated net profit at ₹89 crore, driven by higher dividend income. The company had posted a consolidated profit after tax of ₹60 crore in the same quarter of the previous fiscal.
Tata Investment co-promoted Tata Asset Management Company Ltd with Tata Sons Ltd in 1994. Tata Sons holds 68% while TICL holds 32% of Tata AMC. Tata Asset Management (TAM) is one of the first fund management companies in the Indian private sector. The company’s principal activity is to act as investment manager to the Tata Mutual Funds. Tata Sons is the principal investment holding company and promoter of Tata companies.