2023-03-10 10:47:19
*Is Tata Technologies considered an expensive stock?*
According to the DRHP of Tata Technologies, its closest peers are Tata Elxsi and KPIT Technologies. Currently, Tata Elxsi has a P/E multiple of 71x, while KPIT Technologies has a P/E multiple of 81x.
Based on Tata Technologies' 9MFY23 EPS of ₹10.04, the annualized EPS for FY23 could be around ₹13-14 per share. Assuming a share price of ₹825 in the unlisted market, Tata Technologies trades at around 60x P/E.
As of December 2023, the book value of Tata Technologies is around ₹67. Currently, Tata Technologies trades at around 12 times its book value, while Tata Elxsi trades at around 24 times its book value, and KPIT Technologies trades at around 17 times its book value.
Although, being a Tata group company, liberal pricing is expected, but given the prospects long-term scenario may be different.
Disclaimer - The above piece should not be construed as a recommendation to buy/sell/hold any shares. Kindly do your due diligence before investing. The facts and the figures are presented in good faith, kindly verify the accuracy of the same at your end.
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