Tata Capital Share Price Target: Domestic brokerage firm JM Financial has initiated coverage on Tata Capital Ltd. (TCL) with an ADD rating. The brokerage has set a target price of Rs 360 on the Tata stock.
The brokerage firm said that the Tata Capital Ltd. is a leading diversified NBFC backed by the Tata Group, with nearly 80 per cent of its loan book in secured segments. The company offers a wide range of products, with retail finance making up 61 per cent of its loans. TCL delivered strong AUM CAGR of 31 per cent during FY22-24 and average RoA/RoE of 2.3 per cent/18 per cent in FY23/24.
The brokerage also mentioned that TCL’s merger with Tata Motors Finance (TMFL) negatively impacted its performance in FY25 with AUM YoY growth moderating to ~17 per cent. The brokerage firm expect improvement in financials going ahead and project a ~20 per cent/34 per cent AUM/PAT CAGR over FY25-27.
Established in 2007, TCL is one of the leading, diversified NBFC in India with the strong backing of the Tata group. The company operates largely in secured business segments (80 per cent secured mix).
Tata Capital Ltd. has a highly diversified product mix, offering 25+ distinct lending products broadly classified into three businesses: 61% of its loan book comprising retail finance, 26 per cent SME and 13 per cent corporate loans.
