Ambit Capital boosts Tata Capital with 'buy' rating, shares up

Tata Capital

24/11/2025 05:22

** Shares of Tata Capital TATC.NS rise 1.7% to 322.25 rupees

** Ambit Capital initiates coverage with "buy" rating and PT of 377 rupees

** Notes NBFC's diversified product mix and competitive borrowing costs as key drivers of scalability

** Says improving outlook driven by a shift to multiple OEM partnerships, stronger credit assessment, and better cross-selling

** Sees AUM per branch CAGR of 5% for FY26-28, which should aid stabilization of opex at current levels

** Expects 20% AUM CAGR and 16% average RoE for the next decade, supported by new product opportunities like gold loans, low borrowing costs and strong brand equity

** TATC down 2.5% since October 13 listing

(Reporting by Urvi Dugar in Bengaluru)

((UrviManoj.Dugar@thomsonreuters.com;))