Tata Capital stock below IPO price; Kotak predicts 12% surge

• Tata Capital shares fell below their IPO price, but analysts project a potential surge.
• Kotak Institutional Equities assigned an 'Add' rating with a ₹360 target price, indicating an 11% upside.
• Tata Capital is now India's third-largest NBFC, with a ₹2.44 lakh crore loan book in Q2 FY26.
• The company's diversified portfolio includes 61% retail lending, with gross loans projected to grow at a 21% CAGR (FY25-FY28).
• The merger with Tata Motors Finance Ltd. is expected to drive EPS growth of 29% CAGR (FY25-FY28) and improve ROE to 15.7% by FY28.

Why It Matters: It suggests a potential investment opportunity in Tata Capital despite its IPO price.