Up 111% against IPO issue price, this Tata group stock gains up to 5% today; heres why
Tata Technologies shares are still sitting at a considerable cut from the highest price hit on the listing day. Nevertheless, despite trading in a range, the stock still has managed to be a multibagger stock thus far.
Shares of the Tata group mid-cap IT services and consulting firm rose up to 4.6 per cent in Friday's trade (August 23) as the counter witnessed a block deal in trade today. As per Zee Business research desk inputs, as many as 1 crore shares or 2.5 per cent equity changed hands in multiple trades in the counter today.
Towards the close of the session, the stock traded with gains of 2.9 per cent at Rs 1,037.25 per share on the BSE. The stock closed its all-time high on the listing date i.e. November 30, 2023 of Rs 1,400
So, even at today's highest price, the stock needs to gain 33 per cent to scale that level.
As per reports, Private Equity player Alpha TC Holdings sold its stake in the range of Rs 1,010-Rs 1,020 per share, signifying a likely premium of up to 1 per cent over the previous close.
Domestic funds and High Net worth Individuals (HNIs) are the buyers in the transaction, while ICICI Securities is likely to be the broker of the deal, noted reports.
Brokerage view on Tata Technologies after Q1FY25 earnings
After the company's results, InCred Equities gave a 'reduce' call on the stock for a target of Rs 740, suggesting a downside of nearly 30 per cent from today's highest levels.
"We adjust our estimates for 1QFY25 results and now expect US$ revenue/EBIT (Rsm)/PAT (Rsm) CAGR of 10.8%/14.8%/14.2%, respectively, over FY24-27F and reduce our discounted cash flow or DCF-based target price to Rs740 (Rs797 earlier), implying a target P/E of ~35x FY26F EPS, in line with the peer group (LTTS, Tata Elxsi, KPIT Technologies, and Cyient) average of ~35x FY26F consensus EPS," said the brokerage.
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