Tata Capital's valuations soar in unlisted market

Tata Capital Valuation Triples to ₹3.5 Lakh Crore.

Expert Analysis:

• Valuation Surge: Tata Capital’s valuation soared from ₹300 to ₹900 per share within a year, tripling its market value to ₹3.5 lakh crore.

• Strong Financial Performance: Tata Capital provides mortgage-based loans, business loans, and investment services, with an FY24 top line of ₹11,500 crore, net profit of ₹664 crore, EPS of ₹6.78, a loan book of ₹1.4 lakh crore, and a customer base of 4 million.

• Net Worth and Book Value: With a net worth of ₹20,800 crore, the book value per share is ₹57, highlighting an aggressive valuation.

• High Valuation Metrics: The price-to-book value is 15x, and the price-to-earnings ratio exceeds 120x, signaling caution for new investors.