These 2 Tata Group stocks have zoomed over 2,400 per cent in one year

Telecom services provider Tata Teleservices (Maharashtra) zoomed 2,778%, while auto components maker Automotive Stampings & Assembles has surged 2,476% in the past one year.

Telecom services provider Tata Teleservices Maharashtra (TTML) and auto components maker Automotive Stampings & Assembles (ASL), both shares of Tata Group have zoomed over 2,400 per cent in the past one year. During the same period, the S&P BSE Sensex gained 23 per cent.

TTML (up 5 per cent at Rs 227.90) and ASAL (up 5 per cent at Rs 723.95) were locked at their respective upper circuit limits, with no sellers seen at these counters. In comparison, the Sensex was up 0.32 per cent at 59,375 at 09:55 am.

In the past one year, TTML has zoomed 2,778 per cent from levels of Rs 7.92, while ASAL has surged 2,476 per cent from levels of Rs 28.10 on the BSE. Both these stocks were trading at their respective life-time highs on the bourses.

On clarification of increase in volume, TTML in November and December had said that we would like to submit that we have always promptly intimated of any events, information, etc. required to be disclosed under regulation 30 of the Securities and Exchange Board of India and will continue to do so in future as and when any such event or information occurs in the company. At this stage there is nothing further to disclose, the company said.

As of September 30, 2021, Tata Group companies held a combined 74.36 per cent holding in TTML, of which Tata Teleservices held 74.36 per cent stake, followed by Tata Sons (19.58 per cent) and Tata Power Company (6.48 per cent), shareholding pattern data shows. Individual shareholders held 23.22 per cent holding in the company.

Tata Teleservices (TTSL), along-with its subsidiary Tata Teleservices (Maharashtra), is a growing market leader in the Enterprise space. It offers a comprehensive portfolio of voice, data and managed services to enterprises and carriers in the country under the brand name Tata Tele Business Services (TTBS).

For first half (April-September) of the financial year 2021-22 (H1FY22), TTML had narrowed its net loss to Rs 632 crore from Rs 1,410 crore during the same period of FY21. The company's current liabilities exceeded its current assets as on September 30, 2021.

While announcing Q2 results on November 10, TTML said that it has obtained a support letter from its promoter indicating that the promoter will take necessary actions to organize for any shortfall in liquidity during the period of 12 months from the balance sheet date. "Based on the above, the company is confident of its ability to meet the funds requirement and to continue its business as a going concern," TTML said.

The company has also projected to witness growth in the years to come on the basis of wide optical fiber network of ~132,000 kms (TTSL+TTML), as the company has strong brand presence across customers in this business with deep customer relationships.

Meanwhile, ASAL on December 3, 2021 announced that the company has decided to establish a new plant at Survey No. 679/2/2, Alandi Road, Kuruli, Chakan, Taluka : Khed, District, Pune - 410 501. Tata Autocomp Systems (TACO) holds 75 per cent stake in ASAL, shareholding pattern data showed.

In October 2021, the rating agency CRISIL Ratings had upgraded its rating on the long-term bank facilities of ASAL to 'CRISIL BBB/Stable' from 'CRISIL BBB-/Stable' and has reaffirmed its 'CRISIL A3' rating on the short-term bank facility.

The upgrade reflects expected improvement in the financial risk profile in the near term, supported by cash inflow from sale of land parcels in Chakan, Maharashtra, and Halol, Gujarat, for total consideration of Rs 113 crore; and better cash flow from operations. The company will use the proceeds from the land sale for debt reduction. The upgrade also factors in expected sustenance of operating performance, supported by healthy growth in revenue and profitability owing to recovery in end user demand, receipt of new orders and cost rationalisation initiatives, CRISIL Ratings had said.