Tata Capital gets 2 buy calls on Day 1. Check target prices and post-listing strategy for 2025's biggest IPO
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Tata Capital secured buy ratings from two domestic brokerages on its first trading day on Monday, even as the non-banking finance company's shares listed at Rs 330, just 1% above the IPO price, marking a lackluster market debut. Both Emkay Global Financial Services and JM Financial initiated coverage with identical target prices of Rs 360, implying a 10% upside from the IPO price. The endorsements come despite the muted listing, with analysts citing Tata Group parentage and improving financials as drivers for potential returns. "Our positive stance is based on the Tata parentage and brand name providing the vital ingredients, viz AAA credit rating and abundant debt availability at competitive costs, toward Tata Capital becoming a meaningful NBFC lender," Emkay said in its initiation note. The brokerage expects Tata Capital to deliver approximately 30% earnings per share growth compound annual growth rate during FY25-28, driv...