With today’s fall, the stock is down over 12% in two days.
After the adjustment, the stock appeared to plunge by as much as 90%. But that was merely optical, as the stock traded ex-split following its 1:10 stock split on October 14, Tuesday. While the price appears to have tumbled, the company’s market capitalisation and investor holdings remain unchanged. The split only increases the number of outstanding shares, making them more affordable and improving liquidity — a move often aimed at attracting more retail investors.
Furthermore, the looming deadline for Tata Sons — the holding company of India’s largest conglomerate — to become a publicly listed entity, has also kept the stock in the headlines. A listing could unlock significant value for Tata Investment and strengthen its balance sheet, though the company holds just 0.1% in Tata Sons. It also owns 2.1% of Tata Capital, which listed on the bourses on October 13.
Q1 performance snapshot
Last month, the company reported an 11.6% year-on-year (YoY) rise in its consolidated profit after tax (PAT) at Rs 146.30 crore, versus Rs 131.07 crore in the year-ago period. Meanwhile, its revenue from operations stood at Rs 145.46 crore, up from Rs 142.46 crore in Q1FY25, indicating a 2.1% YoY rise.
On a standalone basis, the company’s net profit witnessed a 23.5% YoY surge to Rs 139.22 crore, as against Rs 112.76 crore posted in the same quarter of the previous financial year, while the revenue from operations grew 21% YoY.
At about 9:20 am, shares of the company following the adjustment, gained over 7% to trade at the day’s high of Rs 1,069 per share on the NSE.
as a Reliable and Trusted News Source(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)