Tata Capital
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Tata Capital's management has expressed a cautiously optimistic outlook, emphasizing growth in unsecured retail, affordable housing, and gold loan segments. The company anticipates a 23-25% growth in assets under management (AUM) for FY27, driven by broad-based growth across its diversified loan portfolio. This aligns with Vista's forecast of accelerating revenue growth and improving margins, supported by a strong balance sheet and favorable market conditions. The anticipated regulatory approval for the gold loan business acquisition is a significant catalyst that could enhance Tata Capital's competitive position and market share. However, challenges such as rising borrowing costs and geopolitical uncertainties may impact net interest margins (NIMs) and the motor finance segment. The NBFC lending sector's overall stability and improving pricing power further bolster Tata Capital's growth prospects. Over the next 12-24 months, key opportunities include the expansion of the gold loan franchise and the integration of Cleantech financing, while watchpoints include potential margin pressures and asset quality risks in unsecured lending segments
Why We Like This Stock
- Management's focus on expanding the gold loan franchise is expected to drive significant AUM growth
- The company's strong balance sheet and diversified funding sources enhance its competitive position
- Improving pricing power in the NBFC sector supports Tata Capital's margin expansion
Things To Watch Out For
- Rising borrowing costs may pressure net interest margins and profitability
- Geopolitical uncertainties could adversely affect the motor finance segment
- Intensifying competition in the retail unsecured lending space poses risks to asset quality
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 8,610 | 13,294 | 15,555 | 15,890 | 19,561 |
| Profit Before Tax (Cr.) | 4,376 | 4,910 | 6,606 | 8,372 | 10,043 |
| PBT Margin | 50.8% | 36.9% | 4246.9% | 52.7% | 51.3% |
| Net Profit (Cr.) | 3,315 | 3,771 | 4,955 | 6,318 | 7,510 |
| Earnings Per Share | 7.4 | 8.9 | 11.6 | 14.7 | 17.7 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Emkay Global | ► Hold | 390 | 19-Jun-2026 |
| HDFC Securities | ► Add | 335 | 24-Apr-2026 |
| Kotak Securities | ► Add | 390 | 24-Apr-2026 |
| Motilal Oswal | ► Neutral | 390 | 29-Jul-2026 |
| Nomura | ▲ Buy | 400 | 19-Jun-2026 |
Company Overview
Show Company Profile
Tata Capital Limited, through its subsidiaries, provides various financial services to retail, SME, corporate, and institutional customers in India, Singapore, and the United Kingdom. The company operates through three segments: Financing Activity, Investment Activity, and Others. It offers loans for retail and corporate borrowers, including asset financing, term loans, channel financing, credit substitutes, investments linked to/arising out of lending business, bill and invoice discounting, and power project finance. It also offers home loans, loans against property, personal loans, business loans, two wheeler loans, car loans, commercial vehicle loans, construction equipment loans, loans against securities, microfinance loans, and education loans. Additionally it provides supply chain finance, equipment finance, cleantech and infrastructure finance, and developer finance. The company also engages in the provision of corporate investment, advisory, wealth management, private equity fund management, and leasing services, as well as the distribution of financial products. In addition, it offers insurance and credit card distribution services. Tata Capital Limited was formerly known as Primal Investments and Finance Limited and changed its name to Tata Capital Limited in May 2007. Tata Capital Limited was incorporated in 1991 and is based in Mumbai, India. Tata Capital Limited operates as a subsidiary of Tata Sons Private Limited.