Tata Investment Corporation Limited (TICL), a key investment company of the Tata Group, made a significant announcement on Monday along with its June quarter results. The company declared a stock split, which has generated considerable excitement among investors.
Q1 Profit Exceeds ₹146 Crore
In the first quarter (April to June) of fiscal year 2025-26, the company's consolidated net profit increased by 11.6% to ₹146.3 crore. In the corresponding quarter of the previous fiscal year, this figure was ₹131.07 crore. This increase indicates the company's b investment strategy and growth in dividend income.
Marginal Increase in Operating Income
Regarding the company's operating income, it also saw a slight increase in this quarter to ₹145.46 crore, compared to ₹142.46 crore in the same period last year. This suggests that the company's income is stable and progressing at a slow but steady pace.
The company's total expenses also saw a marginal increase. Expenses increased to ₹12.15 crore compared to the previous year's ₹11.77 crore. This increase is not significant, reflecting the company's financial discipline.
Good Jump in Dividend Income
The company's income from dividends increased from ₹84.08 crore to ₹89.16 crore this time. For holding companies like Tata Investment, dividend income is a major source of revenue, and this increase indicates the strength of the company's investment portfolio.
Tata Investment has made a big announcement for its investors. The company plans to split one share with a face value of ₹10 into 10 shares with a face value of ₹1 each. This means investors will now receive 10 new shares for every one share they hold. However, this decision will only be implemented after approval from shareholders and regulatory authorities.
Why Was the Stock Split Decided?
The purpose of a stock split is to make the share more accessible to small investors. Currently, Tata Investment's share price is very high, which deters the average investor from investing in it. Now, the share will be split in a 1:10 ratio, which will significantly reduce its market price and make it easier to buy.
Tata Investment operates as a non-banking financial company (NBFC) and has been classified as a Medium Level NBFC by the Reserve Bank of India (RBI). This means that the company is considered important to the system and is subject to greater regulatory scrutiny.
Sharp Rise in Share Price
The impact of the results and stock split announcement was also seen in the stock market. During the trading session, the company's share saw an increase of up to 5.4%. By around 2:15 pm, the share had touched a high of ₹7156 and a low of ₹6750. The share had closed at ₹6778 on Friday.
Tata Investment's share has given investors excellent returns in the long term. In the past two years, this share has given a return of approximately 180%. The return is about 380% in three years and more than 860% in five years. The share has also registered a gain of approximately 13% in one year.
Company's Market Value and Share Movement
The company's 52-week high on the BSE is ₹8,075 and the low is ₹5,147. The company's total market capitalization is more than ₹35,467 crore. This means it is seen as a b smallcap company in the Tata Group.
After the news of the stock split and profit increase, the market's eyes are now on Tata Investment's future strategies and potential investment areas. The company's prudent management policy, the trust of the Tata Group, and a track record of providing better returns make it an attractive option for investors.
