28-Oct-2026 08:40:52
CITI ON TATA CAPITAL ; BUY | TP ₹450
• Stable returns supported by strong loan growth, lower credit costs and operating cost efficiencies, offsetting NIM pressure. • Net Interest Margin (NIM) compression is temporary; balance sheet restructuring and PLR hikes expected to support recovery. • Strong loan portfolio expansion driven by SME and housing finance segments. • Run-off in the motor finance portfolio is moderating, supporting overall business growth. • Asset quality remains resilient, with stable Stage 3 assets and negligible exposure to rural drought-related stress. • AI adoption is improving operating leverage and cost efficiency, while management proactively addresses regulatory changes. • Citi maintains BUY rating on Tata Capital with a target price of ₹450, supported by healthy growth, stable asset quality and improving operational efficiency.
TATA CAPITAL LIMITED