Tata Capital Limited
Tata Capital Limited (TATACAP) demonstrates strong revenue and profit growth with robust profitability metrics. However, its financial health indicators, particularly debt-to-equity and interest coverage, suggest elevated leverage. Despite negative free cash flow trends, the intrinsic valuation indicates a potential margin of safety. The business is a Mega Cap player in the Financial Services sector.
Business Performance (CAGR)
Valuation Snapshot
Financial Health
Profitability Metrics
Cash Flow Intelligence
Intrinsic Value
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AI Business Verdict
Tata Capital Limited exhibits robust top-line and bottom-line growth, with impressive operating margins and a favorable intrinsic valuation. However, significant financial leverage and persistently negative free cash flows present substantial financial health challenges and risks that require close monitoring and strategic capital management.
- Exceptional revenue growth (26.27% CAGR) indicating strong market penetration and demand.
- Robust net profit growth (33.90% CAGR), outpacing revenue and demonstrating operational efficiency.
- High operating margins (71.43%) suggesting effective cost management in core operations.
- Healthy book value growth (30.67% CAGR) supporting long-term business expansion.
Balance Sheet
Tata Capital Limited has an adequate but tight balance sheet — leverage and liquidity warrant monitoring.
Capacity to fund growth, withstand downturns and return capital.
- Tata Capital Limited has an adequate but tight balance sheet — leverage and liquidity warrant monitoring.
- Strong shareholder equity growth
- Efficient working capital cycle
- Elevated debt-to-equity ratio
- Thin interest coverage — cyclical earnings risk
- Tight short-term liquidity cushion
- Large 'other assets' bucket — investigate composition