Book value shouldn’t be applied to measure valuations of holding companies like Tata Investment Corp. Better way to value them is to calculate the market value of their total investments (in both listed and unlisted companies) and then apply say 20% discount to that to derive target market cap of Tata Investment.
I did this calculation before listing of Tata Tech and found the stock to be overvalued which I guess got addressed after bumper listing of Tata Tech. Today’s price move of 20% could be something to do with valuation trigger in of one of their unlisted companies that may not be a common knowledge.
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