4 Tata Group Stocks Trading at a Discount of Up to 42% – Add These to Your Watchlist Now!
4 Tata Group Stocks : The Indian stock market ended last week on a negative note, with the Benchmark Indices showing a downward trend. The Sensex dropped by 199.8 points (around 0.26%), closing at 75,939.21, while the Nifty 50 index fell by about 102.15 points (nearly 0.44%), ending at 22,929.25. Over the past five trading sessions, the Nifty 50 index witnessed a decline of approximately 2.7%, and the Sensex dropped by about 2.5%.
Amid this market volatility, some Tata Group stocks are trading at attractive discounts, presenting a potential buying opportunity for savvy investors. The Tata Group, a global conglomerate with a market capitalization exceeding $400 billion, operates in over 100 countries across six continents. Its market cap even surpasses Pakistan’s projected GDP of $347 billion by the end of 2024.
For investors looking to capitalize on discounted stocks, here are 4 Tata Group stocks currently trading at discounts of up to 42% that deserve a spot on your watchlist:
1. Tata Motors Limited – Trading at a 42% Discount!
Tata Motors Limited is a leading global automobile manufacturer specializing in cars, utility vehicles, buses, trucks, and defense vehicles. The company also produces engines for industrial and marine applications.
- Market Capitalization: ₹2.50 lakh crores
- Current Stock Price: ₹691 (as of Friday)
- 52-Week High: ₹1,179.05 (on July 30, 2024)
- Discount from 52-Week High: Approximately 42%
Financial Performance
In Q3 FY25, Tata Motors reported marginal revenue growth, with a year-on-year increase of around 3% to ₹1,13,575 crores. However, the net profit declined by nearly 22.4% YoY to ₹5,451 crores. This drop in profitability was mainly due to weak demand in China for its luxury brand, Jaguar Land Rover (JLR). Despite these challenges, Tata Motors remains optimistic about improving sales in the coming quarters.
Key Financial Ratios:
- Price-to-Earnings (P/E) Ratio: 12.7
- Earnings Per Share (EPS): ₹54.4
- Return on Equity (ROE): 8.5%
- Debt-to-Equity Ratio: 1.2
2. Tata Elxsi Limited – Innovation at a Discount of 32%!
Tata Elxsi Limited is a global design and technology services company providing engineering solutions to the consumer electronics, communications, and transportation industries. It also offers systems integration and support services for enterprise customers.
- Market Capitalization: ₹38,453.3 crores
- Current Stock Price: ₹6,220.3 (as of Friday)
- 52-Week High: ₹9,082.9 (on August 27, 2024)
- Discount from 52-Week High: Approximately 32%
Financial Performance
In Q3 FY25, Tata Elxsi saw its operating revenue grow by around 3% YoY to ₹939.2 crores. However, net profit declined by nearly 3.6% YoY to ₹199 crores. Despite the challenges in the automotive industry, the company’s transportation business experienced an 8.8% QoQ growth, driven by large deals and demand in Software Defined Vehicle (SDV) and Original Equipment Manufacturer (OEM) sectors.
Key Financial Ratios:
- Price-to-Earnings (P/E) Ratio: 31.2
- Earnings Per Share (EPS): ₹199.4
- Return on Equity (ROE): 25.6%
- Debt-to-Equity Ratio: 0.05
3. Tata Communications Limited – High Growth at a 31% Discount!
Tata Communications Limited is a leading provider of international and national voice and data transmission services, including bandwidth leasing on undersea cable systems and internet connectivity services.
- Market Capitalization: ₹42,728.6 crores
- Current Stock Price: ₹1,531 (as of Friday)
- 52-Week High: ₹2,175 (on October 3, 2024)
- Discount from 52-Week High: Approximately 31%
Financial Performance
In Q3 FY25, Tata Communications reported a revenue growth of around 3% YoY to ₹5,798 crores. The company’s net profit surged by 426.6% YoY to ₹236 crores, attributed to strategic cost optimizations and a focus on high-margin services.
Key Financial Ratios:
- Price-to-Earnings (P/E) Ratio: 15.8
- Earnings Per Share (EPS): ₹96.9
- Return on Equity (ROE): 18.3%
- Debt-to-Equity Ratio: 0.9
4. Tata Technologies Limited – Engineering Excellence at a 38% Discount!
Tata Technologies Limited is a global leader in Engineering Services Outsourcing, Product Development IT services, and Product Lifecycle Management. It provides these services to automotive and aerospace manufacturers worldwide.
- Market Capitalization: ₹29,768 crores
- Current Stock Price: ₹744.5 (as of Friday)
- 52-Week High: ₹1,179 (on February 23, 2024)
- Discount from 52-Week High: Approximately 38%
Financial Performance
In Q3 FY25, Tata Technologies experienced revenue growth of 2.2% YoY to ₹1,317.4 crores, while net profit slightly declined by 1% YoY to ₹168.6 crores. The company’s steady performance is supported by its strategic focus on Product Lifecycle Management (PLM) and Digital Engineering Solutions.
Key Financial Ratios:
- Price-to-Earnings (P/E) Ratio: 24.3
- Earnings Per Share (EPS): ₹49.7
- Return on Equity (ROE): 22.1%
- Debt-to-Equity Ratio: 0.15
Why Consider These Tata Group Stocks?
With their robust business models and strategic market positioning, these Tata Group stocks are trading at significant discounts, making them attractive options for investors looking for value buys. As the market sentiment improves, these stocks have the potential for strong recovery and long-term growth.
Final Thoughts
While these discounted Tata Group stocks offer promising investment opportunities, it is crucial to conduct thorough research and consider your financial goals before making any investment decisions. Consulting with a financial advisor is recommended to align your investment strategy with your risk appetite.
Stay informed, invest wisely, and seize the opportunity to grow your wealth with these discounted Tata Group stocks!
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.