Stacking Up Profits: How Tata Investment Gave 5667% Returns

Published by Trinkerr Academy on

Had you invested ₹1 lakh in Tata Investment in September 2002, you could have had ₹66.7 lakhs today! This multibagger gave its investors ₹56,67,307 in profits and ₹10,11,428 in dividends with 56x growth in 20 years. Let’s have a closer look at this company.

🏦 Stock Name: Tata Investment Corporation Ltd.

🤔 What Does It Do?
Tata Investment is a non-banking financial company (NBFC) which invests in various instruments across industries, including:
📄 Listed & unlisted equity shares of companies
📄 Debt instruments
📄 Mutual funds

💸 Investment Portfolio
📄 Invested in 88 companies out of which 69 are listed and 19 are unlisted.
📄 Invests in both Tata and non-Tata companies, however, Tata companies form the majority of their portfolio.
📄 Portfolio comprises of:
◾Quoted equity shares: 85%
◾ Unquoted equity shares: 6%
◾ Bonds & debentures: 5%
◾ Debt & equity mutual funds: 2%
◾ ETFs: 1%

🌟 Key Developments
📄 Investments have grown by 5.5 times during the period. Its revenue includes dividend income from equity holdings and interest income from bonds & debentures. Presently, dividend income accounts for 66% of their revenues and interest income accounts for the rest of the 34%.

📄 Earns revenue in the form of profits from the sale of long-term equity investments. It has earned ₹126 crores and ₹118 crores from the sale of equity investments in FY’20 and FY’19, respectively.

📈 Stock Value
On August 22, 2005, the company issued a bonus issue of shares in the ratio of 1:2. The stock price was adjusted to ₹34.57 from ₹51.85.

On September 13, 2002, the shares of the company were trading at ₹51.85, while they were priced at ₹1959.65 as of September 12, 2022.


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