Hidden Tata Group Companies
I think, the house of Tatas is blessed by God
Rakesh Jhunjhunwala
Hidden Tata Group Companies: In a February 2021 interview, India’s veteran investor Rakesh Jhunjhunwala stated this. The Tata Group and Natarajan Chandrasekaran, the current chairman of Tata Sons, are favourites of the big bull. Many market observers believe Chandrasekaran is to blame for the Tata Group’s transformation into a profit-driven organisation. Humanity, philanthropy, and ethics are key to the company’s success.
Listed companies in the Tata Group have developed significantly during the last four years. Since Chandrasekaran took control in 2017, India’s largest diverse group’s market capitalization has more than doubled to Rs 23 trillion as of December 31, 2021.
A few Tata Group stocks have managed to offer multibagger returns to their owners during the last two years. Please read our post about multibaggers from the Tata group.
Today, we’ll look into Eight Hidden Tata Group Companies stocks that have been dormant for a long time.
Automotive Stampings and Assemblies Ltd
In the last year, this less-popular Tata group stock has increased by approximately 1,500%. On 22 January 2021, the Automotive Stamping & Assembly stock closed at 35.95, but on 21 January 2022, it finished at 614.10. During this time span, this stock has returned 1,561.98 percent. If an investor had put his faith in this company a year ago and invested one lakh, his one lakh would now be worth more than seventeen lakh.
| BSE Code: | 532779 |
| NSE Code: | INDUSINDBK |
Automotive Stampings & Assemblies Limited (Automot. Stamp&Assem) is a company in the auto parts and accessories sector. The total valuation (market value) of the company is ₹726 crores. The price of one share of the company is ₹459.95 in BSE market today and ₹457.90 in NSE market today. Automotive Stampings and Assemblies was established in the year 1990. [Hidden companies of tata group]
As per the report provided by the company, the total income for the last year was Rs.362.847 crores and the total sales were Rs.362.403 crores. The company’s net profit stood at Rs -17.014 crore. Automotive Stampings and Assemblies Limited has paid tax of Rs.-0.107 crore in the current year. [ Hidden Tata Group Companies ]
PROS
- Company has reduced debt.
- Company is expected to give good quarter
CONS
- Company has low interest coverage ratio.
- Earnings include an other income of Rs.62.26 Cr.
- Company’s cost of borrowing seems high
What does the company do?
Tata Motors uses the auto division to make sheet metal stampings, welded assemblies, and modules for passenger and commercial vehicles. In addition, the company supplies its products to GM India, Fiat India, Piaggio Vehicles, Ashok Leyland, JCB, Tata Hitachi, and MG Motors.
Rallis India
| BSE Code: | 500355 |
| NSE Code: | RALLIS |
Rallis India Limited is a company in the agrochemicals sector. The total valuation (market value) of the company is ₹3,898 crore. The price of one share of the company is ₹ 200.40 in BSE market today and ₹ 200.35 in NSE market today. Rallis India Limited was established in the year 1948.
As per the report provided by the company, the total income for the last year stood at Rs 2,285.828 crore and the total sales stood at Rs 2,251.498 crore. The company’s net profit stood at Rs 185.466 crore. Releases India Limited has paid tax of Rs.56.361 crore in the current year. [ Hidden Tata Group Companies ]
PROS
- Company is almost debt free.
- Company has been maintaining a healthy dividend payout of 29.12%
CONS
- The company has delivered a poor sales growth of 9.38% over past five years.
- Company has a low return on equity of 12.25% for last 3 years.
What does the company do?
Rallis, a Tata Enterprise, is a Tata Chemicals company having a presence in the farm needs sector. It is a renowned crop care company in India. More than 40,000 retail counters are served by the company’s 2,300 distributors, which span more than 80% of India’s districts.
Trent Limited
| BSE Code: | 500251 |
| NSE Code: | TRENT |
Trent Limited is a specialty retail company. The total valuation (market value) of the company is ₹36,848 crore. The price of one share of the company is ₹1,057.75 in BSE market today and ₹1,048.95 in NSE market today. Trent Limited was established in the year 1952.
As per the report provided by the company, the total income for the last year stood at Rs 3,329.43 crore and the total sales stood at Rs 3,177.67 crore. Trent Limited’s net profit stood at Rs 154.58 crore. Trent Limited has paid tax of -80.71 crores in the current year.[ Hidden Tata Group Companies ]
PROS
- Company is expected to give good quarter
- Company has been maintaining a healthy dividend payout of 23.82%
CONS
- Stock is trading at 15.77 times its book value
- Company has low interest coverage ratio.
- Company has a low return on equity of -0.21% for last 3 years.
Nelco Limited
| BSE Code: | 504112 |
| NSE Code: | NELCO |
NELCO Limited (NELCO) is a company in the IT networking equipment sector. The total valuation (market value) of the company is ₹ 1,417 crore. The price of one share of the company is ₹594.15 in BSE market today and ₹595.00 in NSE market today. NELCO Limited was established in the year 1940.
As per the report provided by the company, the total income for the last year was Rs 153.96 crore and the total sales were Rs 151.55 crore. The company’s net profit stood at Rs 13.68 crore. Nelco Limited has paid tax of Rs -3.59 crore in the current year. [ Hidden Tata Group Companies ]
PROS
- Company has a good return on equity (ROE) track record: 3 Years ROE 19.52%
- Company has been maintaining a healthy dividend payout of 22.25%
CONS
- Stock is trading at 15.46 times its book value
What does the company do?
The Tata Group’s Nelco is an IT networking equipment stock. It specialises in turnkey solutions integrating Network Management System with VSAT in the areas of Defense and Defense Surveillance, Civil Applications, Attraction, Electronics for Locomotive, and Security and Surveillance. Defence, railways, steel, cement, car, oil & gas, paper, ceramics, and services are among the primary industries in which the business operates. The company’s major shareholder is Tata Power, a Tata Group power utility company. Its stake in Nelco is 48.64 percent.
Tata Coffee Limited
| BSE Code: | 532301 |
| NSE Code: | TATACOFFEE |
Tata Coffee Limited is a company in the tea and coffee sector. The total valuation (market value) of the company is ₹3,603 crore. The price of one share of the company is ₹ 193.85 in BSE market today and ₹ 194.25 in NSE market today. Tata Coffee Limited was established in the year 1943.
As per the report provided by the company, the total income for the last year stood at Rs.777.322 crore and the total sales stood at Rs.719.437 crore. Tata Coffee Limited’s net profit stood at Rs 73.21 crore. Tata Coffee Limited has paid tax of Rs.-12,445 crore in the current year.[ Hidden Tata Group Companies ]
PROS
- Company has been maintaining a healthy dividend payout of 26.75%
CONS
- The company has delivered a poor sales growth of 8.03% over past five years.
- Company has a low return on equity of 8.84% for last 3 years.
- Company might be capitalizing the interest cost
Tata Steel Long Products Limited
| BSE Code: | 513010 |
| NSE Code: | TATASTLLP |
Tata Sponge Iron Limited (Tata Steel Long Prod) is a company in the iron and steel sector. The total valuation (market value) of the company is ₹2,736 crores. The price of one share of the company is ₹637.15 in BSE market today and ₹633.75 in NSE market today. Tata Sponge Iron Limited (Tata Steel Long Prod) was established in the year 1982.
As per the report provided by the company, the last year’s total income stood at Rs 3,563.059 crore and total sales stood at Rs 3,489.994 crore. The net profit of the company stood at -516.277 crores. Tata Sponge Iron Limited has paid tax of -6.966 crores in the current year. [ Hidden Tata Group Companies ]
PROS
- Stock is trading at 0.89 times its book value
- Company is expected to give good quarter
- Company has delivered good profit growth of 61.71% CAGR over last 5 years
- Company’s median sales growth is 23.98% of last 10 years
CONS
- Company has a low return on equity of 12.77% for last 3 years.
Tinplate Company of India Ltd
| BSE Code: | 504966 |
| NSE Code: | TINPLATE |
Tinplate Company of India Limited (Tinplate Company) is a company in the containers and packaging sector. The total valuation (market value) of the company is ₹3,479 crore. The price of one share of the company is ₹332.85 in BSE market today and ₹332.50 in NSE market today. Tinplate Company of India Limited was established in the year 1920.
As per the report provided by the company, the total income for the last year stood at Rs 2,133.464 crore and the total sales stood at Rs 2,105.712 crore. The company’s net profit stood at Rs 95.028 crore. Tinplate Company of India Limited has paid tax of Rs.-38.078 crore in the current year. [ Hidden Tata Group Companies ]
PROS
- Company is almost debt free.
- Company is expected to give good quarter
- Company has delivered good profit growth of 66.04% CAGR over last 5 years
CONS
—–
What does the company do?
The Tinplate Company of India (TCIL) is India’s largest tinplate maker. The country’s first tinplate producer, TCIL, was founded in 1920. Tin Free Steel (TFS) is available in cut sheet and coil form, as well as tinplate and sheet form. Tinplate Tinplate and TFS, which deal with the packaging of processed foods, are the company’s two primary products. Furthermore, the firm provides services to a diverse range of industries, including culinary oils, paints and insecticides, batteries and aerosols, and bottle crown manufacturers. Tata Steel, which owns 74.96 percent of India’s tinplate firm, is a subsidiary.
Automobile Corp Of Goa Ltd
| BSE Code: | 504966 |
| NSE Code: | TINPLATE |
Automobile Corporation of Goa Limited (Automobile Corp.Goa) is a company in the auto parts and accessories sector. The total valuation (market value) of the company is ₹517 crores. The price of one share of the company is ₹830.00 in BSE market today and is not listed on NSE market today. Automobile Corporation of Goa Limited was established in the year 1980.
As per the report provided by the company, the total income for the last year stood at Rs.343.553 crore and the total sales were Rs.333.172 crore. The company’s net profit stood at Rs 9.957 crore. Automobile Corporation of Goa Limited has paid tax of -6.233 crores in the current year. [ Hidden Tata Group Companies ]
PROS
- Company is expected to give good quarter
CONS
- Stock is trading at 3.06 times its book value
- The company has delivered a poor sales growth of -9.63% over past five years.
- Company has a low return on equity of 1.43% for last 3 years.
- Company might be capitalizing the interest cost
- Debtor days have increased from 74.30 to 93.42 days.
What does the company do?
It is the first large engineering unit corporation to be established in the state of Goa. In 1980, Tata Motors and EDC (previously known as Economic Development Corporation of Goa, Daman, and Diu) collaborated to promote it. Its plants produce sheet metal components, assemblies, and bus coaches. At Tata Motors’ Pune factory, the company is a key supplier of pressings and assembly. Tata Motors is the largest stakeholder of this microcap firm, according to stock market data. It owns a 48.98 percent controlling ownership in the company, while EDC owns a 6.66 percent holding. [ Hidden Tata Group Companies ]
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