Anandrathi - Tata Technologies IPO Note

22 November 2023

Tata Technologies is a subsidiary of Tata Motors. Over the years, the company had strong revenue and margin growth in the past. The company is a leading global engineering services company with deep expertise in the automation industry. Its comprehensive portfolio of services for the automotive industry addresses the product development and enterprise optimization needs of traditional OEM’s and new energy vehicle companies, together with their associated supply chains. At the upper price band company is valuing at a P/E of 32.5x with a market cap of ₹202,830 million post-issue of equity shares and a return on net worth of 20.8%. On the valuation front, we believe that the company is fairly priced. Thus, we recommend a “Subscribe – Long Term” rating for the IPO.