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Tata Capital Ltd (TATACAP) Fair Value & Analysis

Financial Services · IN · Market cap ₹1.5T (≈ $16.1B)

What is Tata Capital Ltd really worth?

TC Tata Capital Ltd TATACAP · NSE
Price₹375.05
Fair Value₹149.40
Upside−60.2%
Quality41/100

Below-average quality, and trading another 151% above our fair value of ₹149.40.

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Strengths

Highly profitable · 39.0% net margin
Wide moat 68/100

Risks

!Expensive Growth (revenue 3y +36.1 %/yr)
!High debt · negative free cash flow
!Trails peers (3/12)
!Evidence only medium, so the estimate is less certain
!Weak on dividend: 3 out of 100
Evidence: Medium Range ₹112.05 – ₹186.76

Fair value as of: Aug 29, 2026

From 9 valuation models · updated 7 days ago

Share price +0.8% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (₹186.76). The favourable scenario is already priced in.
  • Weak quality (41/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (11 months)

₹382.70 ₹297.30 Fair Value ₹149.40 Oct 2025 Sep 2026

White line = price, green steps = our fair value per fiscal year. As of Aug 29, 2026.

How to read this chart

11‑month range ₹297.30 – ₹382.70 · fair‑value band ₹112.05 – ₹186.76 · the ₹375.05 price screens above the ₹149.40 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Aug 29, 2026.

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Analysis

Tata Capital Ltd (TATACAP) currently trades at ₹375.05, while our model-based Fair Value estimate is ₹149.40, implying the stock looks roughly 151.1% overvalued today. The Quality Score stands at 41/100 (below-average quality), in the Financial Services sector. Bull case: the Earnings-Based group reads highest at a median of ₹286.74 per share, and 1 of the 8 models we run sit above the ₹375.05 price. Bear case: the Asset-Based group reads lowest at ₹72.87, and 7 of the 8 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Tata Capital Ltd generated revenue of ₹125B at a net margin of 39.0%. Revenue grew 7.0% year over year. It earns a return on equity of 12.0%. Net debt stands at ₹2.2T. Fundamentals as of Aug 29, 2026

Our scenario range runs from ₹112.05 (bear case) to ₹186.76 (bull case); at ₹375.05, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 27% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −48% fair-value upside, at −60%, TATACAP screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹5.06 per share, which is 3.4 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Owner Earnings best evidence ₹385.32 70
Residual Income ₹98.22 ₹113.63 ₹248.41 68
DDM Multi-Stage ₹3.79 ₹6.77 ₹8.61 64
All 9 models by family
DCF Models
Owner Earnings best evidence ₹385.32 70
Earnings-Based
Graham-Dodd ₹78.15 ₹545.01 ₹764.84 60
Lynch FV ₹200.72 ₹286.74 ₹372.76 58
Dividend Discount
Gordon GGM ₹3.79 ₹8.27 ₹13.91 63
DDM Multi-Stage ₹3.79 ₹6.77 ₹8.61 64
Multiples
P/E Multiple ₹112.05 ₹149.40 ₹186.76 63
P/B Multiple ₹114.20 ₹152.27 ₹190.33 55
Asset-Based
NCAV (Graham) ₹54.38 ₹72.87 ₹108.76 54
Economic Profit
Residual Income ₹98.22 ₹113.63 ₹248.41 68

Widest divergence: Earnings-Based (₹286.74) versus Dividend Discount (₹6.77). Highest evidence: Owner Earnings (70).

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Key figures & financial health

P/E ratio 31.9
P/S ratio 5.02 P/E × margin
EPS (TTM) ₹11.77 price ÷ EPS = P/E 31.9
Dividend yield 0.1% payout 4.0%
Net margin 15.7% FY2026
Return on equity 12.0% TTM
More key figures
Profitability
Return on assets 1.8% TTM
Operating margin 55.5% TTM
Growth
Revenue (TTM) ₹125B TTM
Revenue growth (YoY) +7.0% 3y avg +36.1%
EPS growth (YoY) +52.2%
Balance sheet & cash flow
Free cash flow −₹390B FY2026
Net debt ₹2.2T FY2026

Figures from reported company fundamentals · as of Aug 29, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 41/100

Of which business quality 31 · Market factors (momentum, volatility) 69

Profitability 30
Margins and returns on capital today
Quality Growth 67
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 4
Balance sheet, leverage, solvency risk
Investment 93
Disciplined investing over empire-building
Low Volatility 74
Calm price path (market factor)
Momentum 65
Price trend over the last 3–12 months (market factor)
52W Momentum 71
Distance to the 52-week high (market factor)

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Tata Capital Limited, through its subsidiaries, provides various financial services to retail, SME, corporate, and institutional customers in India, Singapore, and the United Kingdom. The company operates through three segments: Financing Activity, Investment Activity, and Others.

Full company description

Tata Capital Limited, through its subsidiaries, provides various financial services to retail, SME, corporate, and institutional customers in India, Singapore, and the United Kingdom. The company operates through three segments: Financing Activity, Investment Activity, and Others. It offers loans for retail and corporate borrowers, including asset financing, term loans, channel financing, credit substitutes, investments linked to/arising out of lending business, bill and invoice discounting, and power project finance. It also offers home loans, loans against property, personal loans, business loans, two wheeler loans, car loans, commercial vehicle loans, construction equipment loans, loans against securities, microfinance loans, and education loans. Additionally it provides supply chain finance, equipment finance, cleantech and infrastructure finance, and developer finance. The company also engages in the provision of corporate investment, advisory, wealth management, private equity fund management, and leasing services, as well as the distribution of financial products. In addition, it offers insurance and credit card distribution services. Tata Capital Limited was formerly known as Primal Investments and Finance Limited and changed its name to Tata Capital Limited in May 2007. Tata Capital Limited was incorporated in 1991 and is based in Mumbai, India. Tata Capital Limited operates as a subsidiary of Tata Sons Private Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2023 – FY2026 · reported fiscal years

Tata Capital Ltd reported revenue of ₹308B in FY2026 versus ₹122B in FY2023, a compound +36.1%/yr.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹308B
Latest YoY
+10.9%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+36.1%
Value creation/yr We only publish this rate when it is defensible. Reason: only 1 usable fiscal years, at least 4 required
not computed
Revenue +36.1%/yr
FY23 ₹122B
FY24 ₹170B
FY25 ₹278B
FY26 ₹308B

TATACAP screens 151% overvalued. Compare with Visa Inc →

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Cite: Fair Value Calculator (2026). "Tata Capital Ltd Fair Value". https://www.fairvalue-calculator.com/stock/TATACAP

Peer Group

Credit Services · 326 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 41 · Bottom 25%
Fair Value upside −60% · Bottom 25%
Return on equity (TTM) 12% · Above median
Return on assets 2% · Below median
Net margin (TTM) 39% · Top 25%
Operating margin (TTM) 55% · Above median
Revenue growth 7% · Below median
Dividend yield (TTM) 0.1% · Bottom 25%
Debt / equity 4.96× · Higher than 75% of peers

Valuation Multiples vs Credit Services median · lower = cheaper

P/E (TTM) 31.9× · Pricier than 75% of peers
P/B 3.32× · Pricier than 75% of peers
P/S (TTM) 12.13× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 35
FUTURE35 · sector 40
PAST48 · sector 31
HEALTH0 · sector 59
DIVIDEND3 · sector 55

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Credit Services stocks, each showing price versus our Fair Value estimate (as of Aug 29, 2026).

Stock Price Fair Value vs Fair Value
Visa Inc V $379.66 $198.27 −48%
Mastercard Incorporated MA $591.73 $221.87 −63%
American Express Company AXP $334.16 $206.40 −38%
Capital One Financial Corporation COF $215.67 $117.51 −46%
Bajaj Finance Limited BAJFINANCE ₹1,093 ₹397.70 −64%
PayPal Holdings PYPL $61.47 $77.12 +25%
Shriram Finance Limited SHRIRAMFIN ₹1,134 ₹553.82 −51%
Synchrony Financial, SYF $78.05 $137.28 +76%
SoFi Technologies, Inc SOFI $18.06 $5.02 −72%
Cholamandalam Investment and Finance Company CHOLAFIN ₹1,866 ₹796.47 −57%

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Frequently asked questions

Is Tata Capital Ltd (TATACAP) overvalued or undervalued?
As of Aug 29, 2026, our model estimates a fair value of ₹149.40 versus a price of ₹375.05, about −60% upside (overvalued).
What is the fair value of TATACAP?
Our model-based fair value for Tata Capital Ltd is ₹149.40 (as of Aug 29, 2026), built from audited fundamentals. The current price: ₹375.05.
What is the quality score of TATACAP?
Tata Capital Ltd has a Quality Score of 41/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Tata Capital Ltd (TATACAP)?
Tata Capital Ltd reported trailing-twelve-month revenue of about ₹125B (latest available figure, as of Aug 29, 2026).
What is the net profit margin of TATACAP?
The net profit margin of Tata Capital Ltd is about 39.0%, meaning it keeps roughly 39.0% of revenue as net income. Based on the latest reported figures.
Does Tata Capital Ltd pay a dividend?
Tata Capital Ltd currently shows a dividend yield of about 0.13% relative to its recent price (as of Aug 29, 2026).
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