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
