The little-known US$1.4 billion Tata stock revolves around larger cousins| Roadsleeper.com

After a buoyant 2021, this year has been a bit of a bummer for India’s stock market. The S&P BSE Sensex, a key equity index, has fallen 2% since January, compared with a 20% gain last year. But as always, there are stocks that have bucked this trend. And among them are companies whose rally can be a real headscratcher.

Tata Investment Corporation Ltd (TICL) is one such entity.

TICL is anything but an instantly recognizable name from the 154-year-old conglomerate – unlike information technology (IT) firm Tata Consultancy Services Ltd (TCS), jewelery and watchmaker Titan Company Ltd and carmaker Tata Motors Ltd.

But TICL shares have fared much better than those of their much larger cousins, rising 65% in 2022. In September, TICL shares hit an all-time high of Rs 2,885 (~$35). And they have since fallen 20%, and the stock is now worth more than Rs 11,800 crore ($1.4 billion).

As the name suggests, TICL’s core business is investing in a range of listed and privately held companies, venture capital funds, corporate bonds and government securities. Its portfolio includes oil-to-telecom giant Reliance Industries Ltd and TCS rival Infosys Ltd, the unlisted

National Stock Exchange of India Ltd


National Stock Exchange of India Ltd

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and one of VC firm 3one4 Capital’s funds.

But these investments are a sideline to TICL’s holdings in other Tata Group entities. For example, TICL owns 6% of Tata Chemicals Ltd, nearly 5% of Tata Consumer Products Ltd and 3% of consumer manufacturer Voltas Ltd. “Tata Investment is just a Tata Group

ETFs


ETFs

ETFs
An exchange-traded fund works like a mutual fund that tracks an index but is traded on an exchange.


, says the head of research at a domestic fund house. They and some others quoted in the story did not want to be identified because they are not authorized to speak to the media.

TICL is among the smaller holding companies (holdcos) in the corporate house, whose main investment vehicle is Tata Sons Pvt. Ltd. But unlike Tata Industries, which also has small stakes in listed Tata companies, TICL does not incubate new companies. (Privately owned Tata Industries started the e-commerce venture

Tata CLiQ


Tata CLiQ

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, and telemedicine service Tata Health, among others.)

Moreover, neither domestic nor foreign institutional investors care about TICL.