Emkay Global Maintains 'Add' on Tata Capital, Sets ₹390 Target Brokerage firm Emkay Global has reaffirmed its positive outlook on Tata Capital, retaining an 'Add' rating and setting a target price of ₹390 per share. The analysis highlights the non-banking financial company’s (NBFC) strategic initiatives, including growth guidance, operational efficiency improvements, and a shift toward higher-yielding loan segments. The firm’s confidence is rooted in Tata Capital’s ability to navigate macroeconomic challenges while advancing its financial objectives. Tata Capital’s management has outlined a clear roadmap for expansion, aiming to achieve an Assets Under Management (AUM) Compound Annual Growth Rate (CAGR) of 23-25% by the 2028 fiscal year. This growth strategy hinges on a deliberate focus on high-yield lending segments, such as affordable housing, gold loans, micro loans against property, and unsecured personal and business loans. By prioritizing these areas, the company seeks to enhance its net interest margins and deliver stronger risk-adjusted returns. A key component of the investment case for Tata Capital is its target to improve Return on Assets (RoA) to a range of 2.5-2.7% by FY28. Analysts believe this goal will be supported by reduced credit costs and enhanced operational efficiency. The company plans to leverage digital tools and artificial intelligence to streamline operations, which is expected to lower operating expenses relative to its total assets. These measures are designed to bolster profitability and strengthen its competitive position in the market. Asset quality remains a critical factor for Tata Capital, and management has noted a positive trend with a moderation in bounce rates as of June 2026. This indicates healthier repayment behavior among borrowers.#emkay_global #price_to_book #tata_capital #assets_under_management #return_on_assets
Tata Capital share price in focus: Emkay remains bullish, maintains 'Add', says overall momentum intact - Check target price Brokerage firm Emkay Global has reiterated its positive stance on Tata Capital’s stock, maintaining an "Add" rating with a target price of Rs 390. The firm highlighted the company’s long-term growth prospects, citing steady execution and consistent performance metrics. Emkay noted that Tata Capital’s management reaffirmed its financial guidance for FY28, including a 23–25% annualized growth rate in assets under management (AUM), a credit cost of 1%, and a return on assets (RoA) of 2.5–2.7%. These targets reflect the company’s focus on maintaining profitability amid macroeconomic uncertainties. Tata Capital’s growth strategy emphasizes selective expansion in high-yield segments such as affordable housing loans, micro loans against property, gold loans, and unsecured personal and business lending. The company is also increasing its branch presence and deepening geographic reach to drive growth. Management has prioritized middle-income borrowers, which it views as a key segment for risk-adjusted returns. Additionally, the firm is expanding product offerings within existing branches to enhance customer engagement and revenue streams. Profitability is expected to improve as credit costs decline and operational efficiency gains take effect. Emkay projected that Tata Capital’s RoA will rise to 2.5–2.7% by FY28, supported by reduced credit costs to around 1% and technology-driven cost savings. The company is leveraging digital tools and artificial intelligence to streamline operations, reduce expenses relative to assets, and boost returns.#emkay_global #tata_capital #fy28 #assets_under_management #return_on_assets
