Tata Technologies Limited, a stalwart in the engineering services domain, has etched its journey with remarkable prowess and global impact. As we analyse the intricacies of this innovative company, we uncover a tapestry of lesser-known facts, competitive strengths, client engagement strategies, and a compelling peer comparison.
Lesser-Known Facts of Tata Technologies IPO
Tata Technologies, established in 1994 under the umbrella of Tata Motors Ltd, has grown exponentially beyond its initial role as a division. Now, with a global footprint across 25 countries and more than 9,000 professionals, the company operates as an independent entity within the esteemed Tata Group.
Fuelling the wheels of innovation, Tata Technologies actively contributes to emerging technologies such as electric vehicles, autonomous driving, connected vehicles, and digitalization. The company’s prowess extends to virtual reality (VR) expertise, cutting-edge electric vehicle (EV) solutions, digital twin solutions, augmented reality (AR) applications, and strategic partnerships with industry leaders.
Notably, Tata Technologies is at the forefront of EV solutions, boasting a suite of offerings such as EV architectures, connected services, and innovative lightweight frameworks. The company’s strategic partnerships amplify its impact, with recent empanelment by Airbus adding a new dimension to its growth trajectory.
Operating state-of-the-art engineering centres worldwide, Tata Technologies fosters creativity and exploration of new technologies through its Innovation Hub.
At the heart of Tata Technologies’ dominance lies its profound expertise in the automotive industry. The company collaborates with 7 of the Top-10 global automotive ER&D spenders, positioning itself as a pivotal player in the industry’s digital transformation. This includes a decade-long partnership with Jaguar Land Rover (JLR), underpinning Tata Technologies’ role in shaping the automotive landscape.
In embracing new-age automotive trends, Tata Technologies excels in electric vehicles, connected technologies, and autonomous solutions. Its portfolio includes notable projects such as the development of EV architectures, level 2 and level 3 autonomous driver assistance systems, and a proprietary connected vehicle cloud platform named ‘TRACE.’
Beyond its contributions to EVs, the company leverages virtual reality (VR) technology to enhance product design and development, providing immersive experiences and visualization.
Client Engagement Strategies
Tata Technologies boasts a diversified global client base, including Anchor Clients like Tata Motors and Jaguar Land Rover (JLR). The company strategically targets high ER&D spenders within the automotive, aerospace, and transportation and construction heavy machinery (TCHM) sectors.
The company’s emphasis on deepening engagements within its existing client base aligns with its commitment to long-term relationships. Currently, the top 20 clients contribute significantly to the company’s revenue, and Tata Technologies plans to further enhance value by prioritizing high-potential accounts through strategic account planning.
Key Business Strategies
Tata Technologies’ business strategies revolve around deepening engagements, targeting top ER&D spenders, expanding capabilities in digital engineering, and strengthening service delivery. The company is committed to optimizing delivery processes, building talent supply chains, and expanding capabilities in the education sector.
In peer comparison, Tata Technologies stands tall among its listed industry peers. The tabulated comparison highlights key financial metrics, showcasing the company’s robust performance alongside industry giants like KPIT Technologies, L&T Technology Services, and Tata Elxsi.
|Name of the Company||Face Value (Rs per share)||Revenue FY2023 (Rs crore)||Basic EPS FY2023 (Rs)||Diluted EPS FY2023 (Rs)||P/E FY2023||RONW FY2023 (%)||NAV per Share as of March 31, 2023 (Rs)||Market Cap as of March 31, 2023 (Rs crore)|
|Tata Technologies Limited||2||4,414.18||15.38||15.37||N.A.||20.87%||73.65||NA|
|KPIT Technologies Limited||10||3,365.04||14.1||13.95||80.31||22.91%||61.58||25,009.75|
|L&T Technology Services||2||8,013.60||110.8||110.48||37.47||23.54%||470.66||35,680.24|
|Tata Elxsi Limited||10||3,144.72||121.26||121.26||61.55||36.21%||334.92||37,111.15|
Tata Technologies Ltd is poised to enter the Indian primary market with its initial public offering (IPO) scheduled to kick off on November 22, 2023, and will be open for bids until November 24, 2023. The esteemed Tata group company has established a price band for the IPO, ranging from Rs 475 to Rs 500 per equity share. The IPO, entirely constituted as a 100 percent offer for sale (OFS), aims to generate Rs 3,042.51 crore. Each lot of the Tata Technologies IPO comprises 30 company shares. Investors and market participants eagerly await the subscription opening on November 22, anticipating the potential and dynamics of this significant offering in the market.
In summary, Tata Technologies is a strong player in engineering services, showcasing a wealth of achievements. Whether it’s leading the way in EV solutions or forming strategic partnerships, the company is on a path of continuous growth and innovation. Adapting to the ever-changing engineering landscape, Tata Technologies is well-positioned for ongoing success, driven by its dedication to excellence, client-focused strategies, and a forward-thinking approach to industry trends.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions