Tata Investment Corporation Ltd:-Buy/sell: multibagger

Scripscan:Tata Investment Corporation Ltd

Code:501301

cmp:500

Story:Tata Investment Corporation Ltd. operates as an investment company inIndia. Its activities primarily include investing in long-term investments in equity shares and other securities of companies in a range of industries. The company also distributes mutual funds and other investment related securities. Tata Investment Corporation was founded in 1937. It was formerly known as The Investment Corporation of India Limited and changed its name to Tata Investment Corporation Limited.As the name suggests, it is a Tata group Investment Company with interests in Tata Mutual fund through its 49.9% holding in Tata Securities. More than one third of the company’s investment portfolio is in Tata group companies like Tata Steel, Tata Motors, TCS, Tata Tea, Trent.The company has no basic operations but operates like a quasi mutual fund.Debt free, it is dependent directly on the market. A poor market will reflect good numbers and vice versa.And given the tumultuous Q1FY12, the numbers too reflect the same. Topline was down 26% and net profit was down 28% at Rs.26 crore.Its OPM, despite markets, has always been above 90% and NPM too has always been above 76%. Infact it ended FY11 with an OPM of 96% and NPM of 81%. A low risk, mutual fund kind of stock, it remains highly fancied by investors.Boring kind of a scrip for sure but a master of preserving portfolio erosion in uncertain times.

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