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Tata Capital Limited (TATACAP) Fair Value & Analysis

Financial Services · IN · Market cap ₹1.5T

TC Tata Capital Limited TATACAP · NSE
Price₹382.70
Fair Value₹229.85
Upside-39.9%
Quality53/100
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Expensive Growth
Highly profitable · 39.0% net margin
High debt · negative free cash flow
Trails peers (4/11)
Wide moat 68/100
Evidence: Medium Range ₹172.39 – ₹287.32 Share as image

Fair value as of: Jul 12, 2026

From 12 valuation models · updated 26 days ago

Share price +8.5% over the past month.

A solid business, but screening 40% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹287.32). The favourable scenario is already priced in.
  • Solid but not exceptional quality (53/100) and above fair value, neither a clear bargain nor a standout compounder.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (10 months)

₹382.70 ₹297.80 Fair Value ₹229.85 Oct 2025 Aug 2026

White line = price, green steps = our fair value per fiscal year. As of Jul 12, 2026.

How to read this chart

10‑month range ₹297.80 – ₹382.70 · fair‑value band ₹172.39 – ₹287.32 · the ₹382.70 price screens above the ₹229.85 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Jul 12, 2026.

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Analysis

Tata Capital Limited (TATACAP) currently trades at ₹382.70, while our model-based Fair Value estimate is ₹229.85, implying the stock looks roughly 39.9% overvalued today. We read business quality at 53/100 (solid quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Tata Capital Limited 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 Jul 12, 2026

Our scenario range runs from ₹172.39 (bear case) to ₹287.32 (bull case); at ₹382.70, 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 29% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -41% fair-value upside, at -40%, TATACAP screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

Model BearBaseBull Evidence
Highest evidence
Residual Income ₹98.22 ₹113.63 ₹248.41 76
Gordon GGM ₹3.79 ₹8.27 ₹13.91 70
Growth-Adj P/E ₹253.03 ₹361.48 ₹469.92 68
All 12 models by family
DCF Models
Owner Earnings ₹385.32 31
Earnings-Based
Graham-Dodd ₹78.15 ₹545.01 ₹764.84 54
Lynch FV ₹200.72 ₹286.74 ₹372.76 50
PEG = 1.0 ₹200.72 ₹286.74 ₹372.76 46
Dividend Discount
Gordon GGM ₹3.79 ₹8.27 ₹13.91 70
DDM Multi-Stage ₹3.79 ₹6.77 ₹8.61 61
Multiples
P/E Multiple ₹172.39 ₹229.85 ₹287.32 63
P/S Multiple ₹136.89 ₹182.52 ₹228.15 58
P/B Multiple ₹146.53 ₹195.38 ₹244.22 55
Asset-Based
NCAV (Graham) ₹54.38 ₹72.87 ₹108.76 50
Economic Profit
Residual Income ₹98.22 ₹113.63 ₹248.41 76
Growth Earnings
Growth-Adj P/E ₹253.03 ₹361.48 ₹469.92 68

Widest divergence: Growth Earnings (₹361.48) versus Dividend Discount (₹6.77). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) ₹125B
Revenue growth (YoY) +7.0%
Net margin 39.0%
Return on equity 12.0%
Free cash flow −₹390B FY2026
P/E ratio 26.7
More key figures
Operating margin 55.5%
EPS (TTM) ₹11.77
EPS growth (YoY) +52.2%
Net debt ₹2.2T FY2026

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 53/100

Of which business quality 31 · Market factors (momentum, volatility) 70

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 72
Calm price path (market factor)
Momentum 65
Price trend over the last 3–12 months (market factor)
52W Momentum 76
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.

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 Limited 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. growth/yr (3Y)
+36.1%
Revenue +36.1%/yr
FY23 ₹122B
FY24 ₹170B
FY25 ₹278B
FY26 ₹308B

TATACAP screens 40% overvalued. Compare with Visa Inc →

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

Peer Group

Credit Services · 333 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 53 · Above median
Fair Value upside −40% · Below median
Return on equity (TTM) 12% · Above median
Return on assets 2% · Below median
Net margin (TTM) 39% · Top 25%
Operating margin (TTM) 55% · Top 25%
Revenue growth 7% · Below median
Debt / equity 4.96× · Higher than 75% of peers

Valuation Multiples vs Credit Services median · lower = cheaper

P/E (TTM) 30.7× · Pricier than 75% of peers
P/B 3.32× · Pricier than 75% of peers
P/S (TTM) 12.13× · Pricier than 75% of peers

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.

VALUE 0 · sector 35
FUTURE 35 · sector 39
PAST 48 · sector 31
HEALTH 0 · sector 59
DIVIDEND 0 · sector 51

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Credit Services stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
Visa Inc V $348.97 $204.19 -41%
Mastercard Incorporated MA $537.70 $221.87 -59%
American Express Company AXP $358.44 $206.40 -42%
Bajaj Finance Limited BAJFINANCE ₹1,056 ₹397.61 -62%
Shriram Finance Limited SHRIRAMFIN ₹1,024 ₹553.83 -46%
Cholamandalam Investment and Finance Company CHOLAFIN ₹1,808 ₹796.52 -56%
Power Finance Corporation PFC ₹405.10 ₹810.20 +100%
Muthoot Finance Limited MUTHOOTFIN ₹3,129 ₹3,463 +11%
Indian Railway Finance Corporation IRFC ₹88.41 ₹69.72 -21%
REC Limited RECLTD ₹352.45 ₹704.90 +100%

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Frequently asked questions

Is Tata Capital Limited (TATACAP) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ₹229.85 versus a price of ₹382.70, about −40% (overvalued).
What is the fair value of TATACAP?
Our model-based fair value for Tata Capital Limited is ₹229.85 (as of Jul 12, 2026), built from audited fundamentals. The current price is ₹382.70.
What is the quality score of TATACAP?
Tata Capital Limited has a Quality Score of 53/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Tata Capital Limited (TATACAP)?
Tata Capital Limited reported trailing-twelve-month revenue of about ₹125B (latest available figure, as of Jul 12, 2026).
What is the net profit margin of TATACAP?
The net profit margin of Tata Capital Limited is about 39.0%, meaning it keeps roughly 39.0% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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