TATA Capital IPO | Top 3 Points You Must Know | CA Rachana Ranade
Published: 2025-10-07
Status:
Available
|
Analyzed
Published: 2025-10-07
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
NBFCs are projected to experience a Compound Annual Growth Rate (CAGR) of 13.5% to 15% in their assets under management from FY25 to FY28.
"NBFC's assets under management could grow by 13.5% to 15% CGR between financial years 25 to 28."
Pending
Retail credit is expected to grow at a CAGR of 14-16% between FY25 and FY28.
"it is expected that it can grow at a rate of 14 to 16% CAGR between 25 to 28."
Pending
Falling interest rates are expected to significantly benefit both banks and NBFCs.
"we are in a cycle where interest rates are expected to fall further and with a falling interest rate cycle two set of you know industries are the ones which benefit a lot. One is banks and the other one is NBFC."
Correct
After the merger with Tata Motors Finance Limited, Tata Capital's Stage 3 loan ratio increased to 1.9% in FY25, up from 1.5% in FY24 (excluding the merged entity).
"Stage three loans basically are loans which could which are at the brink of becoming NPS. Right? Now for that if you see have a look at this 23 stage 3 loans ratio was 1.7%. It went down to 1.5% at 2024 and if you look at this column XTMFL this is excluding Tata Motors Finance Limited it still stands at 1.5% only but if we include the effect of Tata Motors Limited this jumped to 1.9%."
Correct
Tata Capital's gross Stage 3 loans increased to 2.1% in Q1 FY26.
"But if you see Q1 FY26 number it has further gone up to 2.1%."
Pending
Tata Capital has the fastest-growing branch network compared to its peers.
"it has given the fastest growing branch network amongst the peers"
Pending
Tata Capital has the lowest Return on Assets (ROA) among its peers.
"Return on asset higher the better. In fact it is the lowest here."
Pending
Tata Capital's Return on Equity (ROE) is 12.6%, which is not competitive with its peers.
"ROE return on equity it is at 12.6%. Again higher the better. Nowhere close to being number one."
Pending
Tata Capital's Price-to-Book (PB) value is 4.1, which is lower than some peers like Bajaj Finance (6.5) but higher than others like Shriram Finance (2).
"if I were to check the price to book value for this company, it stands at 4.1 whereas its peers if you check Baj Finance 6.5 but Shiram Finance is at two even others there are few others at lower than 4.10"
Pending
Post-IPO, Tata Capital's Price-to-Earnings (PE) ratio is projected to be 33.24, which is higher than the industry average of 26.66.
"PE ratio industry average is 26.6 6 for this company post IPO it will stand at 33.24"
Pending
Tata Capital must achieve 25% public shareholding within 5 years of listing, as its market capitalization is expected to exceed ₹1 lakh crore.
"as per seboms if the market capitalization of such a company of such a listed company is more than 1 lakh cr rupees which would be the case for Tata capital limited then the 25% public shareholding must be achieved within 5 years of listing."
Pending
An economic slowdown in India, potentially triggered by global events, poses a risk to Tata Capital due to its high proportion of unsecured loans and retail loan dependence.
"especially for point number two and three if there is an economic slowdown. I'm sure everyone knows about the things which are happening in USA right now. If that heat is passed on to India, if there is an economic slowdown in India as well, the point numbers two and three could be kind of a risk for this company as well."
Correct
Tata Capital plans to use IPO proceeds to strengthen its Tier 1 capital base and improve its capital adequacy ratio, facilitating future lending.
"company is mainly going to use this for tier one capital base. See basically higher the tier one capital base you have it'll be easier for the company for lending at at later dates right and also they're going to use this for capital adequacy ratio."
Correct