Founded in 1994, Tata Technologies Limited stands as a leading global engineering services company specializing in Product Development and Digital Solutions. With a rich history spanning nearly three decades, the company has carved a niche for itself in the competitive landscape. This article delves into a comprehensive exploration of Tata Technologies’ diverse portfolio and achievements, shedding light on its contributions to the field of engineering services and its innovative approaches to digital solutions.
From its inception to its current standing, we will discuss every facet of Tata Technologies, providing readers with a holistic understanding of this dynamic and influential player in the industry.
About Tata Technologies
Tata Technologies Limited, a key player in the global engineering services landscape, is at the forefront of innovation, offering a spectrum of services that significantly impact the manufacturing sector. As a subsidiary of Tata Motors and an integral part of the esteemed Tata Group, the company distinguishes itself by providing outsourced engineering services and digital transformation solutions to global manufacturing clients. Leveraging its robust service offerings, Tata Technologies aids clients in designing superior products that cater to evolving customer needs. Furthermore, the company strategically complements its services through a dedicated focus on Technology Solutions, involving the resale of third-party software applications, primarily product lifecycle management (PLM) software.
Notably, Tata Technologies’ fiscal performance showcases a revenue shift, with services constituting 80% and Technology Solutions at 20% in FY23. With a global presence comprising 19 delivery centers across North America, Europe, and Asia Pacific, and a workforce of 12,451 employees, the company continues to demonstrate market leadership. Its consistent recognition in the leadership zone for Engineering Research & Development (ER&D) services by Zinnov Zones further solidifies Tata Technologies’ position as an industry leader, particularly in electrification on a global scale.
Tata Technologies Q3 Financial Highlights
- Sequential Growth: Net profit increased by 6.1% over the previous quarter, reaching ₹170.2 crore in Q3.
- Revenue Growth: Rupee revenue saw a 1.6% sequential growth, amounting to ₹1,289.5 crore in the quarter ended December.
- Global Performance: Dollar revenue showed a 0.9% sequential increase to $154.8 million, with an EBIT margin holding steady at 16.2% year-on-year.
- Service Revenue Shift: Dollar revenue from the services vertical, contributing 78% of operating revenue, declined by 1.7% sequentially, attributed to seasonality and the completion of a large deal.
- Employee Dynamics: While there were no net additions to large clients with a deal value over $5 million, Tata Technologies added 172 employees to its net headcount. Attrition dropped by 1.8 percentage points to 15.4%.
- CEO’s Perspective: CEO Warren Harris acknowledged a potentially cautious end to FY24 due to the completion of an engagement and resource transition. However, he expressed long-term bullishness, citing key deals, partnerships, and alliances set to impact FY25 positively.
- Market Performance: Despite concerns around dependence on the parent group and IPO gains, Tata Technologies remains optimistic about growth. Analysts highlight steady growth potential in the automotive and ER&D sectors amid strong spending and demand.
- Competition and Domain Knowledge: Tata Technologies acknowledges competition from large IT services firms but emphasizes its domain knowledge as a key factor for market and client consideration in the long run.
How to Purchase Tata Technologies?
Below are the trading platforms that you can use to purchase Tata Technologies shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| March 2024 | 1,048.30 | 911.57 |
| April 2024 | 1,017.77 | 885.01 |
| May 2024 | 1,002.73 | 871.94 |
| June 2024 | 1,038.82 | 903.33 |
| July 2024 | 1,028.44 | 894.29 |
| August 2024 | 1,069.57 | 930.06 |
| September 2024 | 1,112.36 | 967.27 |
| October 2024 | 1,090.55 | 948.30 |
| November 2024 | 1,134.17 | 986.23 |
| December 2024 | 1,145.51 | 996.09 |
In March 2024, Tata Technologies is expected to witness maximum and minimum prices of $1,048.30 and $911.57 respectively. As the year progresses, April is anticipated to see a decrease with prices ranging between $1,017.77 and $885.01. However, by December 2024, the company is projected to experience a peak with maximum and minimum prices reaching $1,145.51 and $996.09 respectively.
| When | Maximum Price | Minimum Price |
| January 2025 | 1,146.65 | 882.04 |
| February 2025 | 1,148.95 | 883.81 |
| March 2025 | 1,173.08 | 902.37 |
| April 2025 | 1,150.08 | 884.68 |
| May 2025 | 1,116.58 | 858.91 |
| June 2025 | 1,166.83 | 897.56 |
| July 2025 | 1,143.95 | 879.96 |
| August 2025 | 1,179.33 | 907.18 |
| September 2025 | 1,193.48 | 918.06 |
| October 2025 | 1,224.51 | 941.93 |
| November 2025 | 1,255.12 | 965.48 |
| December 2025 | 1,311.60 | 1,008.93 |
Throughout January 2025, Tata Technologies is expected to witness fluctuations with maximum and minimum prices projected to reach $1,146.65 and $882.04 respectively. As February approaches, the company’s stock is forecasted to remain stable, with prices hovering around $1,148.95 and $883.81. However, by December 2025, Tata Technologies is anticipated to experience a significant surge, reaching maximum and minimum prices of $1,311.60 and $1,008.93 respectively, marking a notable year-end growth.
| When | Maximum Price | Minimum Price |
| January 2026 | 1,350.95 | 1,039.19 |
| February 2026 | 1,385.59 | 1,065.84 |
| March 2026 | 1,439.63 | 1,107.41 |
| April 2026 | 1,411.40 | 1,085.69 |
| May 2026 | 1,370.29 | 1,054.07 |
| June 2026 | 1,431.96 | 1,101.51 |
| July 2026 | 1,403.88 | 1,079.91 |
| August 2026 | 1,447.30 | 1,113.31 |
| September 2026 | 1,497.95 | 1,152.27 |
| October 2026 | 1,536.90 | 1,182.23 |
| November 2026 | 1,575.32 | 1,211.79 |
| December 2026 | 1,614.71 | 1,242.08 |
| When | Maximum Price | Minimum Price |
| January 2027 | 1,647.00 | 1,266.92 |
| February 2027 | 1,689.23 | 1,299.41 |
| March 2027 | 1,755.11 | 1,350.09 |
| April 2027 | 1,720.70 | 1,323.61 |
| May 2027 | 1,670.58 | 1,285.06 |
| June 2027 | 1,745.76 | 1,342.89 |
| July 2027 | 1,711.52 | 1,316.56 |
| August 2027 | 1,764.46 | 1,357.28 |
| September 2027 | 1,826.21 | 1,404.78 |
| October 2027 | 1,873.70 | 1,441.30 |
| November 2027 | 1,920.54 | 1,477.34 |
| December 2027 | 1,968.55 | 1,514.27 |
| When | Maximum Price | Minimum Price |
| January 2028 | 2,007.92 | 1,544.56 |
| February 2028 | 2,059.41 | 1,584.16 |
| March 2028 | 2,139.73 | 1,645.94 |
| April 2028 | 2,097.77 | 1,613.67 |
| May 2028 | 2,036.67 | 1,566.67 |
| June 2028 | 2,128.32 | 1,637.17 |
| July 2028 | 2,086.59 | 1,605.07 |
| August 2028 | 2,151.12 | 1,654.71 |
| September 2028 | 2,226.41 | 1,712.62 |
| October 2028 | 2,284.30 | 1,757.15 |
| November 2028 | 2,341.41 | 1,801.08 |
| December 2028 | 2,399.94 | 1,846.11 |
| When | Maximum Price | Minimum Price |
| January 2029 | 2,447.94 | 1,883.03 |
| February 2029 | 2,510.71 | 1,931.31 |
| March 2029 | 2,608.62 | 2,006.63 |
| April 2029 | 2,557.47 | 1,967.29 |
| May 2029 | 2,482.99 | 1,909.99 |
| June 2029 | 2,594.72 | 1,995.94 |
| July 2029 | 2,543.84 | 1,956.80 |
| August 2029 | 2,622.52 | 2,017.32 |
| September 2029 | 2,714.31 | 2,087.93 |
| October 2029 | 2,784.88 | 2,142.21 |
| November 2029 | 2,854.50 | 2,195.77 |
| December 2029 | 2,925.86 | 2,250.66 |
| When | Maximum Price | Minimum Price |
| January 2030 | 2,984.38 | 2,295.68 |
| February 2030 | 3,060.90 | 2,354.54 |
| March 2030 | 3,180.28 | 2,446.37 |
| April 2030 | 3,117.92 | 2,398.40 |
| May 2030 | 3,027.11 | 2,328.54 |
| June 2030 | 3,163.33 | 2,433.33 |
| July 2030 | 3,101.30 | 2,385.62 |
| August 2030 | 3,197.22 | 2,459.40 |
| September 2030 | 3,309.12 | 2,545.48 |
| October 2030 | 3,395.16 | 2,611.66 |
| November 2030 | 3,480.04 | 2,676.95 |
| December 2030 | 3,567.04 | 2,743.87 |
In January 2030, Tata Technologies is expected to witness substantial growth, with maximum and minimum prices projected to reach $2,984.38 and $2,295.68 respectively. As February approaches, the company’s stock is forecasted to continue its upward trajectory, with prices anticipated to hover around $3,060.90 and $2,354.54. By December 2030, Tata Technologies is predicted to experience significant expansion, with maximum and minimum prices reaching $3,567.04 and $2,743.87 respectively, marking a notable year-end surge.
Financial Condition of Tata Technologies: Last 5 Years
| Year | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Sales | 2,942 | 2,852 | 2,381 | 3,530 | 4,414 |
| Expenses | 2,437 | 2,382 | 1,995 | 2,884 | 3,593 |
| Operating Profit | 505 | 470 | 386 | 646 | 821 |
| OPM (%) | 17% | 16% | 16% | 18% | 19% |
| Other Income | 36 | 36 | 39 | 49 | 88 |
| Interest | 1 | 16 | 18 | 22 | 18 |
| Depreciation | 69 | 99 | 92 | 86 | 95 |
| Profit Before Tax | 471 | 392 | 315 | 587 | 796 |
| Tax (%) | 25% | 36% | 24% | 26% | 22% |
| Net Profit | 353 | 252 | 239 | 437 | 624 |
| EPS (Rs) | – | – | – | – | 15.38 |
| Dividend Payout (%) | 18% | 66% | 0% | 0% | 0% |
- Tata Technologies has demonstrated commendable financial performance over the last five years, with consistent growth in sales and profitability.
- Sales witnessed a remarkable surge, reaching ₹4,414 crores in 2023, reflecting a robust compounded sales growth of 25% in the trailing twelve months (TTM) and 16% over the past three years.
- Operating profit margins steadily improved from 17% in 2019 to 19% in 2023, highlighting effective cost management.
- Net profit experienced substantial growth, reaching ₹624 crores in 2023, with a compound annual growth rate (CAGR) of 43% over the past three years.
- The company’s stock price performance and return on equity signify investor confidence and operational efficiency.
- With a 24% return on equity in the last year, Tata Technologies continues to establish itself as a financially robust and strategically sound entity in the competitive market.
FAQs
What is the current valuation of Tata Technologies in the stock market?
Tata Technologies is currently valued at ₹42,305 Crores in the stock market.
what is the present stock price of Tata Technologies?
The current stock price of Tata Technologies, as of March 19, 2024, is ₹1,043.
What are the projected stock price levels for Tata Technologies in 2024?
Tata Technologies’ stock price is expected to fluctuate between a low of ₹885.01 in April and a high of ₹1,145.51 in December 2024.
What are the key financial highlights from Tata Technologies’ Q3 performance?
In Q3, Tata Technologies witnessed a 6.1% sequential increase in net profit, reaching ₹170.2 crores, and a 1.6% sequential growth in rupee revenue to ₹1,289.5 crores.
How does Tata Technologies plan to address potential challenges in FY24?
While anticipating a cautious end to FY24, CEO Warren Harris remains optimistic, highlighting key deals, partnerships, and alliances expected to positively impact FY25.
What are the key financial performance metrics for Tata Technologies over the last five years?
Tata Technologies has demonstrated impressive compounded sales growth of 25% (TTM), a net profit CAGR of 43% over the past three years, and a return on equity of 24% in the last year.
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In conclusion, Tata Technologies Limited, a prominent global player in engineering services and digital solutions, has exhibited a remarkable journey spanning nearly three decades. Operating as a subsidiary of Tata Motors within the esteemed Tata Group, the company has consistently showcased innovation and excellence in its outsourced engineering services and digital transformation offerings. The fiscal performance in FY23, with a notable revenue shift between services and Technology Solutions, underlines Tata Technologies’ strategic prowess.
The positive trajectory continues, as evidenced by the Q3 financial highlights, with sequential growth in net profit and rupee revenue. While CEO Warren Harris acknowledges potential challenges in FY24, his long-term optimism, fueled by key deals and partnerships, sets a positive tone for FY25. Despite concerns regarding dependency on the parent group, Tata Technologies remains resilient, driven by steady growth prospects in the automotive and ER&D sectors.
The company’s almost debt-free status reflects financial prudence, although a watchful eye is warranted due to an increase in working capital days. Tata Technologies’ international footprint, diverse client portfolio, and strategic alliances position it as a compelling force in the dynamic realm of engineering services and digital solutions.
What did we learn?
- 1 About Tata Technologies
- 2 Tata Technologies Q3 Financial Highlights
- 3 How to Purchase Tata Technologies?
- 4 Tata Technologies Share Price Target 2024 To 2030
- 4.1 Tata Technologies Share Price Target 2024
- 4.2 Tata Technologies Share Price Target 2025
- 4.3 Tata Technologies Share Price Target 2026
- 4.4 Tata Technologies Share Price Target 2027
- 4.5 Tata Technologies Share Price Target 2028
- 4.6 Tata Technologies Share Price Target 2029
- 4.7 Tata Technologies Share Price Target 2030
- 5 Financial Condition of Tata Technologies: Last 5 Years
- 6 FAQs
- 6.1 What is the current valuation of Tata Technologies in the stock market?
- 6.2 what is the present stock price of Tata Technologies?
- 6.3 What are the projected stock price levels for Tata Technologies in 2024?
- 6.4 What are the key financial highlights from Tata Technologies’ Q3 performance?
- 6.5 How does Tata Technologies plan to address potential challenges in FY24?
- 6.6 What are the key financial performance metrics for Tata Technologies over the last five years?
- 7 Conclusion: Navigating Growth and Innovation in Engineering Services and Digital Solutions
