Tata Technologies, a Tata Motor subsidiary, and a Tata Group company, has filed a draft prospectus with the leading market regulator SEBI. The company wants to raise funds through its Initial Public Offerings (IPO). The IPO proposal entails a sale of up to 8.11,33,706 equity shares or 20% capital by Tata Motors. The step of the company to go public will be a golden opportunity for investors to invest in Tata Technologies unlisted shares. It is because the early investment will offer a high return on their investment. In addition, the company has also been performing well against its peers, which include Tata Elxsi, LTTS & KPIT Tech. Let’s confabulate how Tata Technologies is performing well against its competitors.
Stride along with us till the end!
B&K Securities Analysis On Tata Technologies And Its Peers
India’s leading institutional financial services group, B&K Securities, has analysed the performance of Tata Group firm - Tata Technologies, with its competitors and how the company is outperforming in the market. On the basis of revenue, regional exposure margin, vertical exposure, top client contraction, client exposure, headcount growth, offshore/onshore revenue mix, and attrition, B&K Securities will analyse the performance of Tata Technologies. So, let’s talk about it below.
Revenue Growth In Past Few Years
The revenue growth of Tata Technologies has been well in the last three years. The company recorded a PAT of Rs. 106.4 crore for the quarter on March 31, 2022, against a profit of Rs.98 crore in the corresponding period of 2021, which grew at a CAGR of 8.6%. On the contrary, during the same period, KPIT Tech, Tata Elxsi, and LTTS recorded revenue at a compound annual growth rate of 4%, 21.2%, and 5.8%, respectively.
Client Concentration
Tata Technologies records maximum exposure to the top 5 clients compared to its competitors, which stands at 65.8% in FY22 and surges to 72.8% in 9MFY23. At the same time, its competitors like LTTS and Tata Elxsi range at 17-38%. For its top 10 clients, Tata Technologies topped the list with 77.7% in FY22, which increased to 80.7% in M9FY23. Talking about its top 20 clients, Tata Technologies had the highest exposure among its competitors at 87% in FY22. And this exposure surged to 88.4% in 9MFY23.
Slow Margin Expansion
According to B&K Securities, Tata Technologies recorded Earnings Before Interest and Taxes (EBIT) margin of 15.9% in FY22 and 16.9% in M9FY23, which increased by 3% from FY20. This has been achieved with the company's strong growth in the past few years. Taking its competitors (LTTS, Tata Elxsi, KPIT Tech) into account, all these companies recorded relatively low margins, low offshore revenue, and high attrition in FY22.
Attrition Rate
In the past three years, Tata Technologies has recorded the highest attrition rate compared to its competitors. The company has increased its focus on its employees to tackle this situation. It has launched different initiatives aimed at attracting, engaging, retaining, and developing key talent. Despite the rising attrition, Tata Technologies headcount growth was the slowest in the industry, which surged by 17.4% on YoY basis in 2022. Compared to its peers, LTTS, Elxsi, and KPIT grew by 26.8%, 24.7%, and 29.5% on a YoY basis in FY22.
Let’s now look at the table below highlighting the comparison of Tata Technologies’ finances with its peers.
(Rs. in Million)
Name Of The Company | Revenue For FY22 | EPS | NAV Per Equity Share |
Tata Technologies | 35,295.80 | 10.77 | 545.40 |
KPIT Technologies Ltd | 24,323.86 | 10.17 | 49.16 |
L&T Technology Services Ltd | 65,697.00 | 90.74 | 396.73 |
Tata Elxsi Ltd | 24,707.99 | 88.26 | 257.06 |
Tata Technologies reported a revenue of Rs. 2,852.06 crore, Rs 2,380.91 crore, Rs 3,529.58 crore, and Rs 3,011.79 crore for FY20, FY21, FY22, and 9MFY23, respectively. At the same time, the company's net profit margin improved from 8.82% in FY20 to 12.38% in FY22. The best thing is that the profit again increased to 13.53% in 9MFY23. The company's robust financial performance in the last few years has enticed investors to look for Tata Technologies unlisted share price.
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FAQs
Where do I buy Tata Technologies shares?
Ans. Stockify is your ideal platform to buy and sell unlisted shares of top pre-IPO companies in India. The expert brokers will help you with the trading process.
How do I check Tata Technologies unlisted share price?
Ans. You can check Tata Technologies share price at Stockify. We keep updating the price of unlisted shares based on market fluctuation and the company’s performance.
Is Tata Technologies listed on the stock exchange?
Ans. The company hasn’t been listed on the stock exchange but plans to release its IPO to raise funds. To know more info, connect with the experts at Stockify.
How much revenue did the company earn in FY21-22?
Ans. The total revenue company earned in FY21-22 was Rs. 3529.57 cr against Rs. 2380.91 in FY20-21.
Is it legal to buy Tata Technologies unlisted shares in India?
Ans. Yes, it is 100% legal to buy Tata Technologies pre-IPO shares in India. To make your trading process easy, speak to the expert brokers at Stockify.
