Tata Investment Corporation Limited Analysis

thumbnail
Reading Time: 4 minutes

History/Business

  • Tata Investment Corporation Limited was promoted by Tata Sons Ltd., in 1937, under the name The Investment Corporation of India Limited.
  • The Company remained a closely held company till 1959, when it became one of the few publicly held investment companies listed on the Stock Exchange, Mumbai
  • The company invests in a diversified portfolio of quoted and unquoted securities of companies, including Tata Companies, which are engaged in various businesses.

Management and shareholding:

  • Chairman N.N. Tata a graduate from Sussex University UK and IEP (INSEAD) who is also a Chairman of Trent ltd & Trent Hypermarket ltd, MD of Tata International and Director of Company like Voltas, Titan etc. He had earlier worked with Nestle UK.
  • Promoter holding stands at 73.38% (Tata Sons holds 68.5%, other Tata’s Holding 4.88%) and Institutional holdings at 3.76%.

FUNDAMENTALS/FINANCIALS:

  • Of the total Assets which is 8179cr as on 31 March, 2020 8127cr is Investments i.e. 99% of total assets and no borrowings.
  • Investments include (As on 31st March 2020)
  • Quoted Equity share Investment 6838.9 cr
  • As on 27 August, 2020 These Quoted Investment is valued at 9768cr i.e. 2.3 times of current Market Cap.
  • Other Unquoted investments and Investment in Debt/Equity Mutual Fund valued at 1210 as of 31st March 2020.

TOTAL INVESTMENT VALUE AS ON 27 August 2020

PARTICULARS

AMOUNT in Cr

Quoted Investment valued as on 27 August 2020

9768

Unquoted and Debt/Equity Mutual fund as on 31 March 2020

1210

TOTAL INVESTMENT AS ON 27 August 2020 (Approx)

10978

Market Cap as on 27 August 2020 of Company

4248

Also Read on FinMedium:  7 Risks in Biosimilar Space

i.e. AROUND 60% DISCOUNT

  • Above that company is virtually debt-free.
  • Company has declared a dividend of Rs 18 per share for FY20 i.e. the dividend yield of around 2.2% at Current Price of 839 or around 2.8% at the Market price as on 31 March 2020 i.e. 663
  • Tata companies holding already included in quoted investments above include
  • Tata Chemicals 5.97%, Trent ltd 4.28%, Voltas 3.01%
  • Tata Elxsi Ltd 2.3% , Titan 2.01%, Indian Hotel 1.35%
  • Tata Power 0.25%, TCS 0.03%, Tata Steel 0.35%, Tata Motors 0.35%
  • The company is trading P/BV of just around 0.53 i.e. around half of its Book value.

Details of Quoted Investments

As at 31.03.2020

As at 26 Aug 2020

Holdings

Fair Value

Fair Value

Banks

Axis Bank Ltd.

1,783,000

6,762.92

8255.29

HDFC Bank Ltd.(Previous Year Face Value ` 2)

1,830,000

15,774.60

20459.4

ICICI Bank Ltd.

2,557,500

8,299.09

9948.675

South Indian Bank Ltd.

6,273,432

361.35

464.233968

State Bank of India.

855,000

1,683.92

1786.95

32,881.88

40914.54897

Cement

ACC Ltd

340,000

3,289.50

4753.2

Grasim Industries Ltd.

292,000

1,388.17

1947.64

Sagar Cements Ltd.

122,000

372.95

611.22

The Ramco Cements Ltd.

425,000

2,186.20

3081.25

7,236.82

10393.31

CHEMICALS & FERTILIZERS

Tata Chemicals Ltd.

15,200,000

33,896.00

50768

33,896.00

50768

ELECTRICITY & TRANSMISSION

Power Grid Corporation of India Ltd.

Tata Power Co. Ltd.

6,840,962

2,247.26

4282.442212

2,247.26

4282.442212

ELECTRICALS & ELECTRONICS

Bharat Electronics Ltd.

5,676,000

4,220.11

6345.768

Voltas Ltd.

9,960,000

47,693.46

64620.48

51,913.57

70,966.25

ENGINEERING, CONSTRUCTION & INFRASTRUCTURE

Bharat Heavy Electricals Ltd.

2,000,000

416.00

798

Engineers India Ltd.

1,190,000

714.6

833

Larsen & Toubro Ltd.

871,750

7,033.71

8447.2575

NBCC (India) Ltd. .(Previous Year Face Value ` 2).

4,135,000

676.07

1174.34

Rites Ltd.

750,000

1,844.63

1905

Thermax Ltd.

105,000

776.48

837.9

11461.49

13,995.50

FAST MOVING CONSUMER GOODS

Asian Paints (India) Ltd.

536,940

8,949.18

10583.0874

Bata India Ltd.

200,000

2,462.30

2622

Colgate-Palmolive (India) Ltd..

145,000

1,816.78

2045.95

Hindustan Unilever Ltd.

70,000

1,608.71

1528.1

ITC Ltd.

2,518,530

4,331.87

4911.1335

Nestle India Ltd.

59,000

9,618.42

9552.1

Pidilite Industries Ltd.

899,795

12,207.07

13208.9906

Procter & Gamble Hygiene & Healthcare Ltd.

14,500

1,514.86

1485.09

Tata Consumer Products Ltd. (Formerly Tata Global Beverages Ltd.)

44,273,000

130,516.80

243058.77

Titan Company Ltd.

17,875,640

166,869.10

202709.7576

Varun Beverages Ltd.

190,500

1,010.70

1461.135

VST Industries Ltd.

85,276

2,372.29

2945.43304

343,278.08

496,111.55

FINANCE, SERVICES & INVESTMENTS

CARE Ratings Ltd.

308,000

1,015.01

1262.8

Central Depository Services (India) Ltd.

490,000

1,050.56

1960

General Insurance Corporation of India

438,592

460.08

671.04576

GIC Housing Finance Ltd.

1,900,000

1,129.55

2318

HDFC Asset Management Company Ltd.

HDFC Life Insurance Co.Ltd.

300,000

1,324.80

1776

Housing Development Finance Corporation Ltd.

482,000

7,858.77

8753.12

ICICI Lombard General Insurance Co.Ltd.

140,000

1,507.38

1769.6

ICICI Securities Ltd.

LIC Housing Finance Co. Ltd.

1,325,000

3,116.40

3948.5

New India Assurance

579,538

650.24

689.65022

18,112.79

23,148.72

HEALTHCARE

Cadila Healthcare Ltd.

1,060,000

2,831.26

4112.8

Divi’s Laboratories Ltd.

Sun Pharmaceutical Industries Ltd.

1,674,435

5,897.36

6513.55215

8,728.62

10,626.35

HOTELS

Oriental Hotels Ltd.

1,076,000

196.37

247.48

The Indian Hotels Co. Ltd.

16,071,539

12,037.58

16875.11595

12233.95

17,122.60

INFORMATION TECHNOLOGY

Infosys Ltd.

847,578

5,427.04

8060.46678

Mindtree Ltd

81,506

675.11

955.25032

Tata Consultancy Services Ltd.

1,036,269

18,891.70

23357.50326

Tata Elxsi Ltd.

1,435,000

9,037.63

15785

Tech Mahindra Ltd.

0.00

34,031.48

48,158.22

MEDIA & PUBLISHING

Shemaroo Entertainment Ltd.

375,000

189.38

258.75

189.38

258.75

METALS & MINING

Tata Steel Ltd.

3,926,740

10,592.38

16688.645

Tata Steel Ltd.(Partly Paid)(` 2.504 paid)

270,869

80.18

10,672.56

16,688.65

MOTOR VEHICLES & ANCILLARIES

Bosch Ltd.

27,868

2,622.31

3984.00928

Hero MotoCorp Ltd.

100,000

1,594.20

3161

Mahindra & Mahindra Ltd.

1,180,000

3,363.00

7233.4

Maruti suzuki

138,500

5,938.53

9707.465

SKF India Ltd.

166,756

2,414.71

2771.48472

Swaraj Engines Ltd.

105,761

951.85

1723.9043

Tata Motors Ltd.

11,000,000

7,815.50

15169

24,700.10

43,750.26

OIL & NATURAL RESOURCES

Indian Oil Corporation Ltd.

2,100,000

1,714.65

1845.9

Reliance Industries Ltd.

898,000

9,989.80

19190.26

11,704.45

21,036.16

RETAIL

Shoppers Stop Ltd.

200,000

386.9

388

Trent Ltd.

15,207,540

72,874.53

98849.01

73261.43

99,237.01

TELECOMMUNICATIONS

Bharti Airtel Ltd.

75,000

330.45

385.5

330.45

385.50

TRANSPORTATION & LOGISTICS

Container Corporation of India Ltd.

537,500

1,781.54

2117.75

TCI Express Ltd.

149,075

817.38

1259.68375

Transport Corporation of India Ltd.

350,000

658.52

798

3,257.44

4,175.43

MISCELLANEOUS

Finolex Industries Ltd.

302,368

1,181.35

1542.0768

Mahindra Lifespace Developers Ltd.

500,000

954

1365

Westlife Development Ltd.

505,000

1,617.01

1883.65

3,752.36

4,790.73

Total of Quoted Equity shares Value in Lakhs

683,890.11

976,809.97

Total of Quoted Equity shares Value in Cr

6,838.90

9,768.10

Arman’s Linkedin Profile
Click here to read more Research Reports on FinMedium.

Also Read on FinMedium:  Foray into companies experiencing price momentum backed by quality growth

Cover Image: Stockinforce

Every Wednesday and Saturday, we send Info-Graphic and FinMedium Weekly Digest newsletters to our 25000+ Subscribers.

Join Them Now!

Please Share :)
Arman Nahar
C.A. who is a USA CFA L3 candidate | Cleared L1 & L2 | Doing independent equity research since 2016 | Screens stocks for investment | Makes in-depth valuation models | Crafts portfolios.
Back To Top