Shares of Tata Investment Corporation rose 21% in four sessions after the Union Cabinet approved two semiconductor plant proposals by the Tata Group last week. Meanwhile, the stock also hit an upper circuit of 5% at Rs 8,417.6 in Monday’s trade. This was the third consecutive upper circuit in the stock.

Tata Electronics will set up a semiconductor fab in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan. This unit will be constructed in Dholera, Gujarat. The plant will attract Rs 91,000 crore investment.

The Cabinet also approved Tata Semiconductor Assembly and Test Pvt Ltd’s chip assembly and testing unit in Assam at an investment of Rs 27,000 crore. This will be the first investment in a semiconductor packaging plant by the Assam government. It will be built jointly by the state government and Tata Group.

“This marks the beginning of a new era for India. Tata Electronics is proud to play a prominent role in strengthening the global semiconductor ecosystem. Our partnership with PSMC provides access to a broad technology portfolio in leading edge and mature nodes including 28nm, 40nm, 55nm, 90nm & 110nm, and also collaboration for high-volume manufacturing. We are confident that the upcoming Fab will support our ambitions of “Make in India, For the World”. We will be able to serve our global customers’ requirements for supply chain resilience and meet the growing domestic demand,” said Dr Randhir Thakur, MD, and CEO, Tata Electronics.

Tata Investment Corporation is also a multibagger stock as it has given over 100% returns to its investors in the last 3 months. Meanwhile, the stock is up more than 240% in the last six months, 310% in 1 year, and 540% in the last two years.

In Q3 FY24, the company posted a 62% year-on-year (YoY) jump in its standalone net profit for the quarter ended December 31, 2023, at Rs 24.08 crore. The firm had reported a profit after tax (PAT) of Rs 14.85 crore in the year-ago period.The company’s total revenue from operations stood at Rs 30.61 crore for the reported quarter which was up 24% from Rs 24.71 crore reported in the year-ago period. However, total revenue was down by 73% on a sequential basis versus Rs 113.71 crore in the September quarter.In terms of technicals, the relative strength index (RSI) of Tata Investment Corporation stands at 83.7, signaling that the stock is in oversold territory.

Tata Investment Corporation is currently trading higher than its 10-day, 20-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs).

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