Tata Capital’s stock nudged up 0.9% to ₹345 after Citi opened coverage, citing a ₹450 target that signals a 32% upside from today’s level. The note follows a 56% jump in Q1 profit to ₹1,547 cr, up from ₹990 cr a year earlier.
Revenue rose 23% to ₹4,455 cr, matching Citi’s view that the business is scaling. AUM accelerated 22% to ₹2.9 lakh cr from ₹2.37 lakh cr, underscoring the franchise’s expansion across retail, SME and motor finance.
Citi’s FY29 forecast projects AUM CAGR at 24%, while ROA and ROE are expected to climb to 2.5% and 17–18% respectively. Profit‑after‑tax estimates are 5–9% ahead of consensus, reflecting stronger underlying margins.
The brokerage highlights high‑yield portfolio acceleration, strategic entry into gold loans, multiple yield levers and opex efficiency as key catalysts. The turnaround of the motor‑finance arm is also expected to lift earnings further.
With 12 of 14 analysts issuing buy ratings, the stock sits near its IPO price of ₹326, offering a potential 32% upside before the next earnings cycle in July. Investors will watch how the company sustains AUM growth and margin expansion as it moves toward FY29 targets.