Tata Capital Ltd.

Banking · NSE

₹321.70

1Y—

P/E27.2

Fwd P/E15.4

ROE+12.0%

Margin+39.0%

D/E502.06

Div Yld—

Quality Score50/100

Analyst consensus:Constructive· 10 analysts

52-week range

₹300 – ₹367

From 52w high

-12.4%

RSI (14)

44.2

vs SMA 50 / 200

↓ 50 · ↓ 200

Tata Capital (TATACAP), an NBFC within the Tata Group, trades at ₹320 with a trailing PE of 27.2 and a forward PE of 15.4, reflecting expectations of earnings expansion after 52.2% five-year earnings growth. The stock sits 12.88% below its 52-week high, trades below its 50-DMA, and has a quality score of 43 out of 100 — ranking 4th of 6 among its Banking/NBFC peer group.

Pros

✓5-year earnings growth of 52.2% is the headline metric, indicating that net profit has compounded significantly over the period even as revenue growth ran at a more moderate 7% per year.
✓Forward PE of 15.4 represents a meaningful compression from the trailing PE of 27.2, implying that current consensus earnings estimates project a substantial step-up in profitability in the next twelve months.
✓Profit margin of 39.0% is high in absolute terms, consistent with a fee- and spread-driven NBFC business model where operating leverage can amplify returns at scale.
✓J.P. Morgan issued a named constructive rating on TATACAP on 28 April 2026, and the company is reported to be announcing its first-ever dividend — two discrete events that reflect improving capital position.

Cons

✗ROE of 12.0% has not exceeded 15% in any tracked year (roeYearsAbove15 = 0), ranking last (5th of 5 peers with available ROE data) in a peer group where Bajaj Finance reports 17.9% and Axis Bank 13.2%.
✗Debt-to-equity of 502.1 is structurally elevated; while high D/E is normal for NBFCs, FCF has been positive in zero of the tracked years, limiting the internal capacity to reduce leverage organically without fresh capital raises.
✗Quality score of 43 (ranked 4th of 6 peers) and consistency score of 20 reflect below-median capital efficiency and earnings stability relative to the Banking/NBFC peer group.
✗The stock has declined 7.54% over three months and trades below the 50-DMA of ₹323.97, with the 52-week drawdown at 12.88%; only 142 bars of price history are available, so the 200-DMA — a standard long-term trend reference — cannot be computed.

Recent context

·J.P. Morgan issued a constructive rating on TATACAP on 28 April 2026 (as reported by The Globe and Mail); the company also hosted an analyst and institutional investor meet on 30 April 2026, suggesting active investor-relations activity around the time of Q4 results.
·Business Today reported on 23 April 2026 that Tata Capital is set to announce its first-ever dividend alongside Q4 results — a notable capital-allocation signal for an NBFC that has historically retained all earnings.
·Tata Capital elevated three executives to senior management roles as of 9 May 2026 (TipRanks), indicating internal organisational change concurrent with its transition to a more publicly visible, listed entity.

Questions to ask yourself

?Does the 52.2% five-year earnings growth reflect a durable shift in Tata Capital's business mix (e.g., toward higher-margin products) or is it partly an artefact of the low base following COVID-era provisioning?
?How does TATACAP's debt-to-equity of 502.1 and zero FCF-positive years compare with the leverage cycles of listed NBFC peers at comparable stages of their growth, and what conditions have historically enabled D/E reduction in similar businesses?
?If the forward PE of 15.4 is accurate, what earnings level does that imply — and is that earnings trajectory consistent with the ROE trajectory needed to bring returns above the 15% threshold in the medium term?
?What is the significance of the first-ever dividend announcement in the context of Tata Capital's capital requirements as a growing NBFC — does it signal surplus capital or is it primarily a governance signal ahead of a broader listing?

27.2

Forward PE

15.4

ROE

+12.0%

Profit margin

+39.0%

D/E

502.06

Dividend yield

—

Quality score

43/100

ROE 5y above 15%

0/5 yrs

FCF 5y positive

0/5 yrs

Analyst consensus1.60 · 10 analysts(1–5 scale, lower = more constructive)

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For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.