Tata Investments share price: The trend of decline in the share prices of Tata Investment Corporation Ltd continued on Friday as well. In fact, this stock has seen a decline of about 3 percent in the last 5 days, whereas about 4 months ago this stock was at its highest level in 52 weeks and has given more than 46 percent positive return so far in 2024. However, there has been a period this year when this stock has seen continuous lower circuit.
a long period of decline
This phase of decline in the shares of Tata Investment Corp has been continuing for the last 4 months. The stock of this Tata Group company touched its highest level of 52 weeks with a price of Rs 9,756.85 on 7 March 2024. But the same stock was seen trading around Rs 6230 on Friday afternoon. In fact, between March 7 and March 26, 2024, the price of this stock fell by more than Rs 4000. On March 26, 2024, the share price of the company (Tata Investment Share Price) fell to Rs 5663.50. However, at the beginning of 2024, the share price of the company was even lower. On January 1, 2024, the price of one share of Tata Investment Corp was only Rs 4258. This is the reason why despite the weakness in the last 4 months, the stock of Tata Investment Corporation has given a return of more than 46 percent so far this year (YTD).
Also read: SIP in Mutual Fund: Made 1.40 crores from monthly SIP of 10 thousand, this scheme of SBI Mutual Fund gave 6 times return
What is the reason behind the fluctuations in Tata Investment
This question may arise in the minds of investors that why is there a decline in the share price of Tata Investment Corporation after the rise in March 2024? Around March 15, there was a continuous lower circuit in the company’s stock for several days. To know the answer to this question, it is important to understand why there was a tremendous rise in the stock of Tata Investment in March 2024.
Also read: High Return: These 5 mutual funds outperformed all in 10 years, turned SIP of Rs 20,000 into Rs 1 crore
Actually, the main work of Tata Investment is to invest in equity shares and other long term assets and it is a subsidiary of Tata Sons Pvt Ltd. More than 73 percent of the shares of Tata Investment Corporation are held by Tata Sons and other companies of Tata Group. Whereas Tata Sons Private Limited is the principal investment holding company and promoter of all the companies of Tata Group. The Reserve Bank of India (RBI) had put Tata Sons in the category of Upper Layer NBFC in September 2023. Under the rules, it is necessary for a company of this category to get public listing within 3 years. Due to this move of RBI, speculations intensified that the IPO of Tata Sons is about to come. After which the shares of many companies of the group including Tata Investment saw a lot of boom. But later there were reports that the listing of Tata Sons is not going to happen now, because the company has time till September 2025 for this. After this, the trend of rise turned into a period of decline.
Also read : Pension: Do you invest in NPS Tier 1 for pension? Where is your money going, how much return are you getting
The impact of the results that came on 31 July
The recent quarterly results (Tata Investment Corporation Q1 Results) have also contributed to the ongoing decline in the stock of Tata Investment. According to the results announced on 31 July 2024, Tata Investment’s profit declined by 10.72 per cent and revenue by 1.39 per cent during April-June 2024 as compared to the June quarter of last year. However, this has improved the company’s revenue by 139.9 per cent and profit by 116.75 per cent as compared to the previous quarter. The company’s earnings per share (EPS) in Q1 stood at Rs 25.91, which reflects a decline of 10.72 per cent in profit on an annual basis.