Tata Capital IPO: The Complete Deep Dive
P/B (pre‑offer ₹79.5 Price / BVPS 4.1× Official BV NAV) (pre‑offer) Interpretation: Forward P/E near Bajaj‑zone at the rich end; P/B ~4.1× implies the market underwriting high‑teens ROE.
P/B (pre‑offer ₹79.5 Price / BVPS 4.1× Official BV NAV) (pre‑offer) Interpretation: Forward P/E near Bajaj‑zone at the rich end; P/B ~4.1× implies the market underwriting high‑teens ROE.
Fresh Issue (shares) 210,000,000 {Official — Abridged Prospectus} Offer for Sale (shares) 265,824,280 {Official — Abridged Prospectus} Total Offer (shares) 475,824,280 {Official — Abridged Prospectus} Pre-Offer Shares…
Annualizes Q1 FY26 EPS (₹2.5) and cross‑checks with FY25 EPS (₹9.3).
Forward EPS ₹9.3 – ₹10.0 max(FY25, — Model‑Based (N4Q) 4×Q1FY26) Forward P/E @ — Price / EPS 32.6× – 35.1× Model‑Based
P/B (pre‑offer ₹79.5 Price / BVPS 4.1× Official BV NAV) (pre‑offer) Interpretation: Forward P/E near Bajaj‑zone at the rich end; P/B ~4.1× implies the market underwriting high‑teens ROE.
Fresh Issue (shares) 210,000,000 {Official — Abridged Prospectus} Offer for Sale (shares) 265,824,280 {Official — Abridged Prospectus} Total Offer (shares) 475,824,280 {Official — Abridged Prospectus} Pre-Offer Shares 4,034,869,037 {Official — Abridged Prospectus} Post-Issue Shares 4,244,869,037 {Computed = Pre-Offer + Fresh} Implied Market Cap @ ₹326 ₹ 13,838,273.06 crore {Computed} NAV/Share (FY25, pre-offer) ₹ 79.5 {Official — Abridged} Net Worth (FY25, consolidated) ₹ 3258.78 crore {Official — Abridged} Anchors: ~₹4,642 crore allocated at ₹326 (Reuters). Listing window per company notices.
| Metric | Bajaj Finance | Cholamandalam | Shriram Finance | Tata Capital |
|---|---|---|---|---|
| Finance | (IPO) | |||
| ROE (%) | 19.2% 18.01–19.8% 15.6% 12.6% | |||
| ROA (%) | 2.2% 2.11–3.3% 4.3% 1.8% | |||
| NIM (%) | 9.9% 7.0% 9.6% 5.2% | |||
| Gross NPA (%) | Gross NPA (%) | 1.03% (Jun '25) 3.97% (Mar '25) 4.53% (Jun '25) 2.1% (June '25) | ||
| Net NPA (%) | 0.50% (Jun’25) 2.63% (Mar '25) 2.57% (Jun '25) 1.0% (Jun’ 25) |
October 6, 2025
| Peer | Ticker | Mkt Cap | P/E | EV/EBITDA | ROCE | P/B |
|---|---|---|---|---|---|---|
| (₹ cr) | (TTM) | (%) | ||||
| Bajaj Finance BAJFINANCE.NS ≈615,700 ≈35.3× 22.20 19.44 >5× | ||||||
| Cholamandalam CHOLAFIN.NS ≈132,000 ≈29.7× 16.00 10.34 ≈4× Inv. | ||||||
| Shriram Finance SHRIRAMFIN.NS ≈121,000 ≈12.5× 11.7 11.60 ≈2.3× |
Annualizes Q1 FY26 EPS (₹2.5) and cross‑checks with FY25 EPS (₹9.3). Figures are model‑based with ranges.
Forward EPS ₹9.3 – ₹10.0 max(FY25, — Model‑Based (N4Q) 4×Q1FY26) Forward P/E @ — Price / EPS 32.6× – 35.1× Model‑Based
P/B (pre‑offer ₹79.5 Price / BVPS 4.1× Official BV NAV) (pre‑offer) Interpretation: Forward P/E near Bajaj‑zone at the rich end; P/B ~4.1× implies the market underwriting high‑teens ROE.
Using FY25 ROE (≈12.6%), COE 13–14%, and g 10–12%, justified P/B often <3×; to justify ~4.1× on pre‑offer BV, Tata needs sustained ROE ≈18–20% with COE ≤13–14%.
October 6, 2025
This research is for information and education only and is not investment advice. Figures may be provisional. Oorjita.AI and its authors may hold positions in securities mentioned. Please consult a SEBI-registered investment adviser before making investment decisions. Published Monday, 6 October 2025, 3:06 PM IST.
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