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Tata Investment, Bajaj Holdings are gaining value. Are holding companies good long-term bets?

Tata Investment, Bajaj Holdings are gaining value. Are holding companies good long-term bets?
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Synopsis

In the past month, shares of prominent holding companies such as Tata Investment, Bajaj Holdings, Kalyani Investment, and JSW Holdings have outperformed the benchmark indices. So, is it the right time to invest in these firms? Analysts advise to exercise caution and ask to watch out for two distinct factors before committing money. Here are the details.

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6 mins read,
Tata Investment Corporation (TIC), a holding company of the Tata group, has outperformed the star jewel – TCS. In the past 10 years, the company’s stock price has gone up annually 18% (at INR2,489), while TCS is up 16% (annually) during the same period. This seems strange to many analysts who feel holding companies do not get the right price multiples. TCS has a PE multiple of 28x while the same number for TIC is 51x. This could also be an

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