1:2 Bonus, Rs 401/Sh Dividend: Tata's NBFC To Announce Dividends Soon, 721% Returns In 5 Years; Fundamentals

 Tata Investment Corporation, the funding giant of Tata Group, is in the limelight for its upcoming dividend rewards and Q4 results. Tata Investment is among the dividend king stocks and has a long track record of consistent payouts. Despite periodic hiccups in its share price performance, Tata Investment is still a multi-bagger with gains of more than 120% in six months.


Tata Investment's stock ended at Rs 6951.40 apiece on BSE with a market cap of Rs 35,170.81 crore after a trading session on April 12. This would be the second consecutive upside this week. 

Tata Investment shares are cheaper by nearly 27% from its 52-week high of Rs 9,744.40 apiece which was recorded in early March due to anticipation of Tata Sons IPO. Nonetheless, the stock has given 253.69% returns from its 52-week low of Rs 1,965.35 apiece as of now.

In six months, Tata Investment shares have zoomed by 120.30%, while YTD, the upside is a little over 64% on BSE. In a year, the stock rallied by 239% as of now. In 5 years, the gains are mind-boggling by 721%. 5-years ago, Tata Investment shares were merely around Rs 850 levels. 

Tata Investment Dividend: 

In its regulatory filing this week, Tata Investment said, "The meeting of the Board of Directors of the Company is scheduled on April 24, 2024, inter alia, to consider and approve i. The Audited Standalone and Consolidated financial results of the Company for the financial year ended March 31, 2024 and ii. Recommendation of dividend, if any, on the equity shares of the Company for the financial year ended March 31, 2024."

This will be the first dividend announcement of 2024. Tata Investment has a long history of paying final dividends, and most likely the upcoming recommendation will be final as well for FY24. 

Dividends are of two categories interim and final dividend. The latter is announced after the ending of a fiscal year, while also higher in amount compared to the interim dividend. Dividends are incentives which listed companies share from their respective profitability of that fiscal year.

In 2023, Tata Investment paid a dividend of Rs 48 per share, followed by its all-time high dividend payout of Rs 55 per share in 2022. As per Trendlyne data, Tata Investment has delivered up to 28 dividends since September 2000. Its data showed that in two decades, Tata Investment has delivered a total of whopping Rs 401.1 dividend per share to its shareholders. 

Currently, Tata Investment has a dividend yield of 0.7%. 

Tata Investment Bonus Issue:

 Apart from dividend payout, Tata Investment has carried 1 bonus issue. The company issued 1 bonus share on the existing 2 shares with an ex-date in August 2005. 

Bonus shares are free of cost and are additional shares on existing ones that investors hold. 

Tata Investment Share Fundamentals: 

As per Trendlyne data, the key fundamentals of Tata Investment shares are:

 - - Debt to Equity Ratio of 0.01 is less than 1 and healthy. This implies that its assets are financed mainly through equity. 

- Mutual Fund Holding increased by 0.01% in the last quarter to 0.06. 

- Interest Coverage Ratio is 29.78, higher than 1.5. This means that it can meet its interest payments comfortably with its earnings (EBIT). 

- Price to Earning Ratio is 102.02, higher than its sector PE ratio of 27.33. 

- Return on Equity(ROE) for the last financial year was 1.28%, less than 10%, indicating an inefficient use of shareholder's capital to generate profit.


- Promoter Share Holding stayed the same in the most recent quarter at 73.38%. 

- Promoter Pledges are zero. 

Tata Investment has no brokerage coverage and has never carried a split. 

During Q3 of FY24, Tata Investment reported revenue from operations of Rs 30.61 crore, rising from Rs 24.71 crore in Q3FY23, but down from Rs 113.71 crore in Q2FY24. Meanwhile, PAT stood at Rs 24.08 crore in Q3FY24 versus Rs 14.85 crore in Q3FY23 and Rs 113.24 crore in Q2FY24. 

Disclaimer: The write-up is for information purposes, and is not a 

recommendation to buy, sell or hold. We have not done fundamental or 

technical analysis and have no opinion on the stock mentioned. Neither, 

the author nor Greynium Information Technologies should be held liable 

for any losses. Please consult a professional advisor.







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