After nearly 20 years,🤯🤯
The Tatas are coming with an IPO!
The Tata Technologies IPO opens today.
Is the IPO worth the hype?🤔🤔
A thread🧵on the business of Tata Technologies and if one should apply to the IPO?
Lets go👇
The Tatas are coming with an IPO!
The Tata Technologies IPO opens today.
Is the IPO worth the hype?🤔🤔
A thread🧵on the business of Tata Technologies and if one should apply to the IPO?
Lets go👇
What does Tata Technologies do?
Tata Technologies is a prominent global provider of engineering services, providing turnkey solutions, digital solutions, and product development to OEMs
It is a pure-play manufacturing focused Engineering Research & Development (“ER&D”) company
Tata Technologies is a prominent global provider of engineering services, providing turnkey solutions, digital solutions, and product development to OEMs
It is a pure-play manufacturing focused Engineering Research & Development (“ER&D”) company
Engineering Research & Development (“ER&D)
ER&D services encompass design, development, testing, and maintenance activities for creating devices, platforms, or software ready for production and sale
It is a fast-growing industry
ER&D services encompass design, development, testing, and maintenance activities for creating devices, platforms, or software ready for production and sale
It is a fast-growing industry
How do IT services vary from ER&D services?
The company operates in 2 segments
1. Services Segment (ER&D)
2. Technology Segment
ER&D dominates the revenue
1. Services Segment (ER&D)
2. Technology Segment
ER&D dominates the revenue
Services Segment (ER&D):-
Tata Tech’s core competency is Full Vehicle Development, the company offers solutions for outsourced vehicle development from concept to reality helping Auto companies to launch competitive vehicles faster with optimized
cost
Tata Tech’s core competency is Full Vehicle Development, the company offers solutions for outsourced vehicle development from concept to reality helping Auto companies to launch competitive vehicles faster with optimized
cost
The company offers services to greenfield customers who are looking for EV development like
startups, and for brownfield customers like traditional OEM:
It offers services like cost optimisation, teardown benchmarking, Internal Combustion Engine (ICE) to Electric (EV) conversions
startups, and for brownfield customers like traditional OEM:
It offers services like cost optimisation, teardown benchmarking, Internal Combustion Engine (ICE) to Electric (EV) conversions
Technology Segment
Tata Tech resells 3rd party software for Product Lifecycle Management, CAD, Simulation, Virtual Collaboration,
Manufacturing Monitoring/Quality Inspection
Tata Tech resells 3rd party software for Product Lifecycle Management, CAD, Simulation, Virtual Collaboration,
Manufacturing Monitoring/Quality Inspection
Highly Diversified Revenue:-
The company's revenue data reflects a strategic balance in its global operations, with a well-distributed presence
across both emerging and developed markets
The company's revenue data reflects a strategic balance in its global operations, with a well-distributed presence
across both emerging and developed markets
Strong Client base:-
The company has worked with clients across the global automotive landscape from North America to China. The client list includes names like Tata Motors, Jaguar-Land Rover, Polestar, Vinfast (Vietnam), Mclaren, Honda, Ford.
The company has worked with clients across the global automotive landscape from North America to China. The client list includes names like Tata Motors, Jaguar-Land Rover, Polestar, Vinfast (Vietnam), Mclaren, Honda, Ford.
Financials of the company.
The company has delivered solid growth with consistent margins
The company has delivered solid growth with consistent margins
Competitors of the company
In India there are listed peers like LTTS, KPIT and Tata Elxsi
In India there are listed peers like LTTS, KPIT and Tata Elxsi
Objects of the IPO:-
Tata Technologies is raising a total of Rs 3,042.51 crore via its initial stake sale, which entirely consists of an offer-for-sale (OFS).
The company is not raising funds via fresh issue and will not receive any proceeds from the IPO.
Tata Technologies is raising a total of Rs 3,042.51 crore via its initial stake sale, which entirely consists of an offer-for-sale (OFS).
The company is not raising funds via fresh issue and will not receive any proceeds from the IPO.
Valuation:-
Tata Technologies will trade at a P/E multiple of 30x
The growth prospects and the promoter quality is strong.
However, the stock is not cheap.
This entire space trades at an expensive multiple.
Tata Technologies will trade at a P/E multiple of 30x
The growth prospects and the promoter quality is strong.
However, the stock is not cheap.
This entire space trades at an expensive multiple.
Conclusion:-
Tata Technologies is a world-class company backed by a strong promoter
It operates in the Er&D space which is a growing space.
However, the valuation is not cheap per se
Given the mass hype across the markets very little chance of allotment as well
Tata Technologies is a world-class company backed by a strong promoter
It operates in the Er&D space which is a growing space.
However, the valuation is not cheap per se
Given the mass hype across the markets very little chance of allotment as well
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📈Investing
📈Stock Analysis
Go to my profile and hit the bell icon🔔to always stay updated
Disclaimer:-
This is my own study
Not an investment recommendation
Please consult your own financial advisor before making any investment decisions
This is my own study
Not an investment recommendation
Please consult your own financial advisor before making any investment decisions
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