This Tata Group stock hits fresh one-year high, up 36% in 7 sessions. Details here

This Tata Group stock hits fresh one-year high, up 36% in 7 sessions. Details here

Shares of Tata Investment Corporation Ltd continued their upward march for the seventh straight session in Thursday’s trade. The stock jumped 9.86 per cent to hit a one-year high of Rs 7,115. At this price, it has gained 36.15 per cent in seven trading days. That said, the scrip has given multibagger returns in the past one year by rallying around 250 per cent.

Bourses BSE and NSE have put the securities of Tata Investment under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

The company has reported a 54.19 per cent jump in its third-quarter consolidated net profit (Q3 FY24), at Rs 53.24 crore, compared to Rs 34.53 crore in the year-ago fiscal. During the quarter under review, revenue from operations rose 34.23 per cent to Rs 50.55 crore from Rs 37.66 crore in Q3 FY23.

Support on the counter could be seen at Rs 6,700, followed by Rs 6,500 level, technical analysts suggested. On the higher side, immediate resistance may be found at Rs 7,500.

Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, “Support will be at Rs 6,700 and resistance at Rs 7,000. A decisive close above Rs 7,000 level may trigger a further upside till Rs 7,200. Expected trading range will be between Rs 6,500 and Rs 7,300 for a month.”

AR Ramachandran from Tips2trades said, “Tata Investment is bullish but also very overbought on daily charts with next resistance at Rs 7,663. Investors should book profits at current levels as a daily close below support of Rs 6,700 could lead to target of Rs 5,740 in the near term.”

DRS Finvest founder Ravi Singh said, “The stock looked strong on daily charts. It has potential to hit a target of Rs 7,500. Keep stop loss placed at Rs 6,500.”

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter’s 14-day relative strength index (RSI) came at 83.58. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 117.11 against a price-to-book (P/B) value of 1.39.

Earnings per share (EPS) came at 55.31 with a return on equity (RoE) of 1.19.

Promoted by Tata Sons, Tata Investment is a non-banking financial company (NBFC) registered with Reserve Bank of India (RBI). Earlier named The Investment Corporation of India, the company is primarily involved in investing in long-term investments such as equity shares and equity-related securities. As on December 2023, promoters held 73.38 per cent stake in the company.

The Tata Group firm also invests in units of mutual funds, bonds, and venture capital funds. Its subsidiaries include Simto Investment Company, Tata Asset Management, Tata Trustee Company, and Amalgamated Plantations.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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