Tata Stock: Investors become poorer by 30% in 2 months
tata stock: investors become poorer by 30% in 2 months in tata investment corporation
Tata Stock: There’s a lot of excitement on D-Street about stocks that have turned investors into crorepatis practically overnight. And when these discussions come up, you can bet Tata Group stocks do often find a mention in such conversations. But today, we are going to talk about a Tata Group stock that did the opposite – it wiped out investors’ wealth, leaving them worse off.
Shares of a Tata Group stock has tanked by 29.53 per cent from its all-time peak. This stock, which is a constituent of S&P BSE 500 and enjoys a market cap of Rs 34,577.84 crore (as on May 9), had rallied a staggering 463 per cent from its April 2023 lows of Rs 1,731 to its all-time high of Rs 9,756.85, made on March 7, 2024.
The stock under discussion is none other than Tata Investment Corporation Ltd. Tata Investment Corporation is mainly engaged in the business of investment in listed and unlisted equity shares, debt instruments and mutual funds, etc. of companies in a wide range of industries. The company is a NBFC registered with the RBI under the category of Investment Company.
Tata Investment: From Riches to Rags
If you would have invested Rs 1,00,000 in Tata Investment’s shares at its peak of Rs 9756.85, you would be left with just Rs 70,470, a massive Rs 29,530 loss over the initial investment.
To break even and return to their initial investment of Rs 1,00,000, they would need a whopping 41.90 per cent return on their reduced investment amount.
Tata Investment: From Rags to Riches
If we look at the long-term chart of Tata Investment post-Covid, we find that its shares once touched Rs 591.55 on March 25, 2020. From there, it travelled to Rs 9,756.85 in just about 4 years, making investors richer by a whopping 1,549.37 per cent or about 16 times.
Tata Investment Corporation Ltd Company Profile
As per the company’s official website, Tata Investment Corporation Ltd. 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. During the 1960s and 1970s the Company’s activities underwent a gradual transformation from assisting in the establishment of new ventures, to acting as an investment company with a diversified portfolio of investments. The company became a subsidiary of Tata Sons Ltd. in February, 2008. Tata Sons, together with other Tata companies, holds approximately 72.98% of the paid-up capital of Tata Investment Corporation Limited. as on 31th March, 2018.
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