Subscribe for Tata Capital Ltd IPO; Ajcon Global

Ajcon Global, Tata Capital Ltd

Tata Capital Ltd. (TCL) is the Tata group's flagship financial services company and a subsidiary of Tata Sons Private Limited, the group's parent company and promoter. According to the CRISIL Report, the Tata Group is one of India's most prestigious corporate organizations, with a 150-year record that includes enterprises in ten verticals including automotive, technology, steel, financial services, aerospace and defense, consumer and retail. The "Tata Group" brand was named the most valuable brand in India by the Brand Finance India 100 2025 survey. With total gross loans of ₹2,334.0 billion as of June 30, 2025, it is the third largest diversified NBFC in India, according to the CRISIL Report. It is also one of the fastest growing large diversified NBFCs in India in terms of total gross loan growth, with total gross loans growing at a CAGR of 37.3% from March 31, 2023 to March 31, 2025. Its metrics, including the Gross Stage 3 Loans Ratio of 2.1%, the Net Stage 3 Loans Ratio of 1.0%, and the Provision Coverage Ratio ("PCR") of 53.9%, are among the best among large diversified NBFCs in India as of June 30, 2025.

Valuation and Outlook

At the upper price band of ₹326, the issue is valued at a P/E multiple of ~37.78x on its FY25 EPS of ₹8.63 post IPO. We give a ‘SUBSCRIBE’ rating to the issue for the following reasons.