1. At a Glance
Tata Investment Corporation Ltd (TICL) is basically a glorified mutual fund that doesn’t do mutual things — no SIPs, no redemptions, no flashy ads — just long-term holdings in Tata and other blue-chip companies. Sounds cool till you see the P/E of 107 and a ROE of 1.02%. Yup, this is a real company, not a finance meme.
2. Introduction with Hook
Imagine Warren Buffett’s Berkshire Hathaway but with the excitement of a PowerPoint presentation from 1997. That’s TICL — a holding company with great assets but performance that moves slower than Doordarshan buffering in the ’90s.
- Market Cap: ₹33,292 Cr
- Book Value: ₹6,145
- EPS (FY25): ₹61.68
- Dividend Payout: 44%
- Listed Investments: 62, Unlisted: 23
- Zero debt. But also, almost zero thrill.
3. Business Model (WTF Do They Even Do?)
TICL is a non-banking finance company (NBFC) registered with the RBI under the “Investment Company” category.
Core Biz:
- Invests in equity (listed & unlisted), debt, and mutual funds.
- Major chunk is in Tata group companies like TCS, Tata Motors, Tata Chemicals etc.
- Occasionally sprinkles some non-Tata names like HDFC, Infosys, and ITC — for spice.
Revenue Sources:
- Dividend income
- Sale of securities
- Minimal operating expenses (basically a finance guy’s dream cost structure)
Think of it as an Indian-style permanent capital vehicle — no operating biz, just investment play.
4. Financials Overview
| Metric | FY25 |
|---|---|
| Revenue | ₹304 Cr |
| Operating Profit | ₹266 Cr |
| Net Profit | ₹312 Cr |
| EPS | ₹61.68 |
| OPM | 87% |
| ROCE | 1.21% |
| ROE | 1.02% |
Yes, these are real numbers. No, this is not a PSU.
5. Valuation
CMP: ₹6,580
Book Value: ₹6,145
P/E: 107
P/B: 1.07
Fair Value depends heavily on the value of its underlying investments (NAV).
Let’s estimate:
- Value of holdings in TCS, Titan, Tata Motors, etc. = ₹30,000–₹32,000 Cr (based on last filings)
- NAV/share estimated: ₹6,300–₹6,700
Fair Value Range: ₹6,200–₹6,900
So, current price is at slight NAV premium — rare for holding companies, but it’s Tata, and people love Tata more than Rasna in summer.
6. What’s Cooking – News, Triggers, Drama
- No operating biz, so drama is limited.
- Recent Leadership Change: Mr. Amit N. Dalal elevated as MD (Oct 2024).
- Merger of TSR Consultants with Link Intime — backend stuff.
- Other income (₹105 Cr) drives a chunk of FY25 profits.
- Market volatility = portfolio swings = you cry when they cry.
Most of TICL’s “news” is market-dependent. If Tata group stocks rally, TICL becomes a rocket. If not… it’s a sleeping elephant.
7. Balance Sheet
| Item | FY25 |
|---|---|
| Equity Capital | ₹51 Cr |
| Reserves | ₹31,040 Cr |
| Total Assets | ₹34,842 Cr |
| Borrowings | ₹0 Cr |
| Investments | ₹34,626 Cr |
| Fixed Assets | ₹174 Cr |
💡Key Takeaway:
- Debt-free
- 99% of total assets are investments
- No real liabilities = ultra clean
This is the “I brush twice a day and eat chia seeds” of balance sheets.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹230 Cr | -₹189 Cr | -₹47 Cr | -₹6 Cr |
| FY24 | ₹235 Cr | ₹366 Cr | -₹495 Cr | ₹106 Cr |
| FY25 | ₹206 Cr | -₹166 Cr | -₹143 Cr | -₹102 Cr |
Mostly positive cash from ops. Investing cash flow swings wildly depending on market timing of buys/sells. Financing outflow = dividends.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 1.02% |
| ROCE | 1.21% |
| OPM | 87% |
| D/E | 0.00 |
| EPS | ₹61.68 |
| Dividend Yield | 0.41% |
| P/B | 1.07 |
Low ROE because it doesn’t run operations. It is an Excel sheet wearing a suit.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | Net Profit | EPS |
|---|---|---|---|
| FY23 | ₹277 Cr | ₹252 Cr | ₹49.78 |
| FY24 | ₹385 Cr | ₹385 Cr | ₹76.09 |
| FY25 | ₹304 Cr | ₹312 Cr | ₹61.68 |
Boring but consistent. Profits mostly track capital markets. OPM always sky-high due to low operating cost.
11. Peer Comparison
| Company | P/E | ROE | Mcap (₹ Cr) | OPM | Yield | CMP/BV |
|---|---|---|---|---|---|---|
| Tata Inv Corp | 107 | 1.02% | ₹33,292 | 87% | 0.41% | 1.07x |
| JSW Holdings | 124 | 0.69% | ₹24,217 | 94% | 0.00% | 0.78x |
| Mah. Scooters | 95 | 0.61% | ₹16,668 | 93% | 0.96% | 0.54x |
| TVS Holdings | 21 | 30.5% | ₹24,699 | 15.2% | 0.77% | 5.25x |
TICL commands higher valuation thanks to Tata premium and better disclosures. But ROE is still potato-level.
12. Miscellaneous – Shareholding, Promoters
| Category | % Stake |
|---|---|
| Promoters | 73.38% |
| FIIs | 2.46% |
| DIIs | 0.53% |
| Govt | 0.49% |
| Public | 23.12% |
| Shareholders | 1.59 lakh+ |
No dilution, no sudden stake sales — just gradual FIIs interest picking up. Very retail-heavy thanks to Tata branding.
13. EduInvesting Verdict™
Tata Investment Corporation is a clean, boring, zero-debt, zero-hype wealth vehicle. You’re essentially buying a basket of Tata companies through a legal wrapper — no fund manager, no fees, no drama.
The catch?
- Low liquidity
- Returns entirely depend on group stocks
- No “active” alpha
- ROE and ROCE so low, they might be confused with GDP growth in Antarctica
⚖️ If you’re a long-term Tata believer with a Zen mindset and patience of a monk, TICL may work for you. For thrill-seekers? Stick to roller coasters or small caps.
Metadata
– Written by EduInvesting Team | 15 July 2025
– Tags: Tata Investment Corporation, Holding Companies India, Long-term Equity Investing, NBFC Passive Investing, Tata Group Stocks, NAV Premium
