Tata Investment Corporation has once again rewarded its shareholders with a dividend, this time declaring a final dividend of Rs 27 per share for FY25. The announcement came on Monday alongside the company’s Q4 earnings, but the cheer was short-lived as the share price slipped nearly 2% in intraday trade, trading at Rs 6,293.35.
Despite the dividend, market sentiment appears muted. Let’s break down what is driving the movement in Tata Investment’s stock.
Dividend keep flowing, even as profit falls
Tata Investment declared a dividend of Rs 27 per share. In fact, the firm has been a dividend darling for investors offering Rs 28 in 2024, Rs 48 in 2023, Rs 55 in 2022, Rs 24 in 2021, and Rs 18 in 2020. While the FY25 payout is slightly lower than the previous three years.
Profit slumps nearly 38% in Q4FY25
The financials, however, painted a less rosy picture. Tata Investment reported a 37.62% drop in consolidated net profit to Rs 37.72 crore in Q4 FY25, compared to Rs 60.47 crore in the same quarter last year. Revenue from operations also nosedived falling over 71% to Rs 16.4 crore from Rs 57 crore in Q4 FY24.
Stock performance on a downward slope
Tata Investment’s share price has been under pressure in recent months. In April alone, it’s down nearly 2%, while on a six-month basis, it has slipped about 8%. On a year-to-date (YTD) basis too, the stock has shed 8%. Its 52-week high stands at Rs 8,074.25, while the low is Rs 5,145.15, indicating considerable volatility. The company’s current market cap is Rs 31,770 crore.
About the company
Founded in 1937 by Tata Sons, Tata Investment functions as a non-banking finance company (NBFC) that focuses on long-term investments in equity shares and securities. Tata Sons remains the primary promoter, holding a 68.5% stake in the company.