Not TCS Or Tata Motors, This Tata Group Stock Is India's Best Performing Share This Year

A lesser known Tata group stock that is often not in the limelight, is currently the best performing stock on India's stock market. Can you guess? Is it TCS, Tata Steel or Tata Motors? Well, it is none of these popular Tata group stocks.

This Tata Group Stock Is India's Best Performing Share This Year

tata investment stock/web screengrab

Despite having no analyst rating and very little institutional ownership, Tata group's investment arm Tata Investment Corp is the best-performing Indian stock this year till date. Tata Investment Corporation Limited is a non-banking financial company involved in investing in long-term investments.

Among the companies that make up the Nifty 500 Index and account for over 94% of India's market capitalization, Tata Investment Corp has experienced the greatest jump, up more than 100% so far in 2024. Since the beginning of the year, the stock has led a $58 billion rally in Tata Group companies; with the expectations of Tata Sons' IPO next year driving about a fifth of this rally last week alone, as per Bloomberg report.

The company¡¯s shares then fell by the 5 per cent daily limit on Monday after it was reported that Tata Sons is exploring options to avoid an IPO.

The SEBI (Securities and Exchange Board of India) is taking notice of the "froth" in small- and mid-cap stocks, which coincides with the recent surge in Tata investment stock. The country's $4.5 trillion stock market has caused some investors to become overly optimistic, so last month the market regulator asked mutual funds to safeguard investors.

More Details About Tata Investment Corp

tata investment corp share

Founded in the year 1937, the only source of income for Tata Investment, which Tata Sons owns 68.5% of, is dividends from investments. According to data compiled by Bloomberg, its valuation is 2.4 times its 12-month book value, which puts it above the value of India's largest state-owned bank, State Bank of India Ltd., and on par with the country's largest private sector lender, HDFC Bank Ltd.

Tata Investment Corp invests in a diversified portfolio of quoted and unquoted securities of companies, including Tata Companies, which are engaged in various businesses with a history of strong operating and financial performance. The typical investment approach of the Company is to seek a combination of value and growth.

Also Read: Why Tata Group Is Trying To Delay The IPO Of Its Parent Company Tata Sons

Performance Of Big Tata Group Stocks This Year

As far as the prominent Tata group stock are concerned TCS stock has been up more than 10% this year till date,Tata Steel is up more than 8%,Tata Motors is up 28% and Tata power is up 21%.

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