1:2 Bonus, Rs 28/Sh Dividend: Tata's NBFC Stock Turned Ex-Dividend; Turns Rs 60K To Rs 26,37,846 In Long Term

Tata Group-backed NBFC stock, Tata Investment touched a 5% upper circuit on the day it turned ex-dividend. Tata Investment fixed June 18 as the record date for its final dividend payout of Rs 28 per share for FY24. YTD, the stock has given double-digit returns.

On BSE, after hitting a 5% upper circuit of Rs 7069.20 apiece, Tata Investment stock ended at Rs 6887.85 apiece up by 2.31% with a market cap of Rs 34,849.28 crore.

The stock's 52-week high and low is at Rs 9,744.40 apiece and Rs 2,278.50 apiece respectively. YTD, the stock surged by 62%. In a year, the gain is about a whopping 185.40%. The stock is up by 703.15%. Meanwhile, Tata Investment's all-time gains are by a breathtaking 4,296.41%. The stock was at Rs 156.67 on July 14, 1995.

If an investor had infused Rs 60,000 in Tata Investment, nearly 3 decades ago, their corpus will be currently at Rs 26,37,846 as of June 18, 2024. This would be a return of 4,296.41% hence.

Tata Investment Dividend:

Tata Investment turned ex-dividend for a dividend of Rs. 28/- per Equity Share of Rs.10/- each (280%) for the Financial Year ended March 31, 2024. The company will pay the dividend on or after July 10, 2024.

In 2023, Tata Investment paid a dividend of Rs 48 per share, followed by its all-time high dividend payout of Rs 55 per share in 2022. As per Trendlyne data, Tata Investment has delivered up to 28 dividends since September 2000. Its data showed that in two decades, Tata Investment has delivered a total of whopping Rs 401.1 dividend per share to its shareholders.

Apart from dividend payout, Tata Investment has carried 1 bonus issue. The company issued 1 bonus share on the existing 2 shares with an ex-date in August 2005.

Tata Investment funds a diversified portfolio of quoted and unquoted securities of companies, including Tata Companies, which are engaged in various businesses with a history of strong operating and financial performance.

Tata Investment's FY24 revenue surged to Rs 383.12 crore compared to Rs 277.16 crore in FY23. In the fiscal 2023-24, PAT surged to Rs 384.96 crore, also higher from Rs 251.75 crore in FY23.

Among the key fundamentals of the stock as per Trendlyne data are:

- Stock Price rose 184.26% and outperformed its sector by 152.35% in the past year.

The debt to Equity Ratio is zero as the company is debt-free.

- Mutual Fund Holding increased by 0.01% in the last quarter to 0.06.

- Interest Coverage Ratio is 32.75, higher than 1.5. This means that it can meet its interest payments comfortably with its earnings (EBIT).

- Price to Earning Ratio is 90.6, higher than its sector PE ratio of 28.55.

- Return on Equity(ROE) for the last financial year was 1.28%, less than 10%, indicating an inefficient use of shareholder's capital to generate profit.

- Promoter Share Holding stayed the same in the most recent quarter at 73.38%.

- Promoter Pledges are zero.

Tata Investment Corporation Limited was promoted by Tata Sons Ltd., in 1937, under the name The Investment Corporation of India Limited. The Company remained a closely held company till 1959, when it became one of the few publicly held investment companies listed on the Stock Exchange, Mumbai.