Tata Capital Ltd.
ISIN: INE976I01016 • Market Cap: ₹1.55 Lakh Cr
The 5-Pillar Quality Audit for Tata Capital Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (74.1%), Return on Capital Employed (11.4%), and equity compounding (10.6%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 5.16 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (21.6%) and 3Y PAT CAGR (20.2%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 28.68 vs PEG of 1.44 and Dividend Yield of 0.2%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 85.4%, backed by 8.7% institutional ownership.
Key Fundamental Strengths
Strong Topline Expansion (3Y Sales CAGR: 21.6%)
Revenue has expanded at 21.6% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 20.2%)
Net earnings have compounded at 20.2% annualized, demonstrating operating leverage.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 11.4%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Elevated Financial Gearing (D/E: 5.16)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Quantitative Strategy Eligibility
Checking TATACAP against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 68/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Financial Services Sector Peer Comparison
Compare TATACAP directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Tata Capital Ltd. (TATACAP)Current | 68/100 | ₹1.55 Lakh Cr | 28.68 | 11.4% | 5.16 | — |
| HDFC Bank Ltd. (HDFCBANK) | 74/100 | ₹11.10 Lakh Cr | 14.05 | 12.8% | 1.01 | View |
| ICICI Bank Ltd. (ICICIBANK) | 76/100 | ₹10.06 Lakh Cr | 17.94 | 16.5% | 0.62 | View |
| State Bank of India (SBIN) | 71/100 | ₹9.66 Lakh Cr | 11.20 | 12.2% | 1.38 | View |
| Bajaj Finance Ltd. (BAJFINANCE) | 68/100 | ₹6.72 Lakh Cr | 33.07 | 13.9% | 3.86 | View |
| Life Insurance Corporation of India (LICI) | 87/100 | ₹5.22 Lakh Cr | 8.70 | 37.8% | 0.00 | View |
Frequently Asked Questions: Tata Capital Ltd.
Q:What is the 5-Pillar Fundamental Score for Tata Capital Ltd. (TATACAP)?
Tata Capital Ltd. has a RupeeTools Fundamental Score of 68/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (67/100), Financial Health (47/100), Growth (86/100), Valuation (75/100), and Ownership Quality (72/100).
Q:Is TATACAP fundamentally strong for long-term investment?
TATACAP currently holds a moderate quality rating of 68/100. While it operates in the Financial Services sector, investors should monitor its debt health before initiating long-term positions.
Q:Does TATACAP pass the Coffee Can Investing filter?
No. TATACAP does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does TATACAP compare against other Financial Services peers?
Within India's Financial Services sector, TATACAP trades at a P/E of 28.68 and generates an ROCE of 11.4%. Compare its 5-Pillar score of 68/100 against top sector peers like HDFC Bank Ltd. (74/100), ICICI Bank Ltd. (76/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.