Tata Capital Share Price Target Today : The brokerage house has initiated coverage on Tata Capital with an Add rating and a target price of ₹360 for September 2026, which is 10% percent higher than the issue price.
Tata Capital Share Price Target Today: Recently, brokerage firm Emkay Global Financial Services initiated coverage on Tata Capital, a leading non-banking financial company (NBFC) of the Tata Group. Tata Capital has given the stock an ‘Add’ rating, betting on the company’s parentage, product offerings, and promise of profitable growth.
The brokerage firm has set a target price of ₹360 for September 2026, a 10% premium to the issue price of ₹326 per share. This rating is based on a FY27 (price-to-book) multiple of 2.8x for the company.
Meanwhile, Tata Capital shares began their D Street journey by listing at ₹330 per share on the NSE and ₹330 on the BSE against the issue price of ₹326 per share, following the launch of its ₹15,511 crore initial public offering (IPO), making it the largest IPO in the NBFC sector in recent years.
Tata Capital Ltd Share Price Today
According to Avinash Singh, a senior research analyst at Emkay Global, this positive sentiment stems from several structural strengths of the company, such as the Tata Group’s strong 85.41% parentage in Tata Capital, the company’s diversified product portfolio and operational capabilities, which are expected to drive sustained profitability.
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Avinash said “Tata Capital’s AAA credit rating and access to abundant, low-cost debt position it well to emerge as a meaningful NBFC lender.
Tata Capital’s diversified product mix and pan-India presence help mitigate concentration risks, while improvements in credit costs and operating leverage should drive a steady improvement in RoA and RoE to 2.2 percent and 15.4 percent, respectively, by FY2028.
Emkay Global expects Tata Capital’s earnings per share (EPS) to grow by more than 30% between FY2025 and FY2028, driven by growth in the vehicle finance business and a higher share of secured loans.
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Tata Group’s heritage, diverse products are key strengths
MK Goble believes that Tata Capital’s group heritage provides a strong competitive advantage – including improved access to financial and human capital, cost-efficient financing backed by a AAA credit rating, and extensive brand recognition.
The brokerage house stated that these factors enable Tata Capital to serve a broad client base, from large retailers and MSMEs to large corporates.
Tata Capital operates in 27 states through a network of approximately 1,500 branches across the country. Its most important states contribute 14% of the total number of branches (over 200), while its largest product line accounts for only 17% of the total assets under management (AUM).
Emkay Company said this diversification has helped the NBFC quadruple its AUM in the last eight years, making it the third largest private sector NBFC despite facing several major shocks including demonetisation and the COVID-19 pandemic.
Strong growth prospects due to operating leverage and improved credit costs
MK Gobal expects Tata Capital’s retail and MSME franchises to benefit significantly from improved credit demand and improved capital adequacy following the IPO.
The brokerage firm estimates Tata Capital’s net interest margin (NIM) to expand by 60-70 basis points to 5.8% between FY2025 and FY2028, driven by an increased share of high-yielding assets, lower borrowing costs, and improved leverage.
Tata Capital’s total AUM is projected to nearly double to ₹4.3 trillion by FY2028, while improved funding costs and lower credit costs are expected to maintain profitability.
Strong earnings growth but moderate returns
Emkay Global forecasts 24% AUM CAGR and 30% EPS CAGR from FY25 to 2028, supported by company operating leverage and improved asset quality in the auto finance sector.
However, it expects moderate return ratios, with ROA and ROE reaching 2.2% and 15.4%, respectively, by FY28.
The brokerage further stated, “Given the moderate return profile, we see limited scope for revaluation in the near to medium term.”
Tata Capital’s stock performance will be primarily driven by book value compounding.
Emkay Global also cautioned that key risks include a delay in reduction in credit costs in auto finance and macroeconomic headwinds, which could impact growth or asset quality.
