Tata Technolog. (TATATECH)

FairStock Score: 43/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Tata Technologies as a Graham-style bargain hunter and Buffett-style quality seeker. The business has some quality: ROCE of 25.80% and ROE of 14.84% are respectable, debt/equity is only 0.24, Piotroski F-Score is 7/9, Altman Z-Score 3.86, and it generated ₹634 Cr free cash flow. Promoter holding of 55.21% offers stability. Those returns suggest a narrow moat, not a wide one, because profit growth is negative and margins are thin. But the price asks for much more than the numbers justify. At ₹867.90, market cap ₹35,241 Cr, P/E 63.30, P/B 8.98, and dividend yield 0.96%, I see no margin of safety. Graham Number is ₹129.42, implying a negative margin of safety of -352.35%; DCF intrinsic value is only ₹40.28. PEG 18.90 is extreme, and the negative EV/EBITDA of -44.46 is a warning I cannot ignore. Growth is not compensating: sales growth 8.66%, 5-year revenue CAGR 12.62%, but profit growth is -10.89%. Latest quarter sales were ₹1,366 Cr, yet net profit was just ₹7 Cr, a razor-thin margin. The 52-week range of ₹507.40–₹891.00 shows the market has already priced a lot of hope. FairStock score 43/100 is mixed, not compelling. This may be a decent IT-enabled services franchise with low debt and cash generation, but at this valuation it is speculative. I would wait for a much lower price, a durable profit recovery, and a margin of safety before considering it. In short, the scales tilt toward caution.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer