The rally follows strong momentum seen in the previous session, where the stock closed nearly 8% higher on Thursday after touching an intraday high of Rs 727.40 on the BSE — marking a gain of as much as 13% during the day.
The development is significant for Tata Investment Corporation, as Tata Sons holds a majority stake of 68.51% in the company, according to December quarter shareholding data from NSE. In the December quarter (Q3), the company also witnessed a notable rise in retail investor participation, with the shareholder base expanding from 1.57 lakh to 2.35 lakh — an addition of 78,000 investors, reflecting growing investor interest.
Chandrasekaran’s proposed reappointment would require an exception to the group’s retirement policy, which typically applies to non-executive roles beyond the age of 65. A similar waiver was granted in 2016 when Ratan Tata succeeded Cyrus Mistry as chairman.
Earlier, Tata Trusts — the majority shareholder of Tata Sons — had unanimously approved Chandrasekaran’s reappointment in an executive capacity in October last year. Separately, the top leadership of Tata Consultancy Services (TCS) is expected to present its artificial intelligence strategy to the Tata Sons board next week, adding another layer of strategic importance to the upcoming board discussions.
Valuation and Technical Indicators
From a valuation standpoint, Tata Investment Corporation trades at a price-to-earnings (P/E) ratio of 85.94, indicating premium valuations compared to broader market averages. However, its price-to-book (P/B) ratio stands at 0.11.
On the technical front, the stock’s 14-day Relative Strength Index (RSI) is at 63, suggesting strong momentum but still below the overbought threshold of 70. An RSI below 30 is typically considered oversold, while levels above 70 signal overbought conditions. Additionally, the stock is trading above seven of its eight simple moving averages (SMAs), reflecting a sustained bullish trend.
According to the latest December quarter shareholding pattern, foreign portfolio investors (FPIs) marginally reduced their stake from 2.69% to 2.54%. Meanwhile, mutual funds slightly increased their holdings from 0.11% to 0.12% during the same period.
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