Tata Technologies is a global engineering and product development digital services company focused on fulfilling its mission of helping the world drive, fly, build and farm by enabling its manufacturing customers across automotive, industrial machinery, aerospace and industrial verticals develop and realize better products and drive efficiencies in their businesses. They have recently published their Annual Report for FY20-21 and the main points from the annual report with regards to new business added , ESOPs, Financials and Valuation of Tata Technology is presented by UnlistedZone team. Key Takeaways from Annual Report 2021 Deals pocket by Tata Technologies 1. Launched an AUTOSAR (AUTomotive Open System ARchitecture) development center in India for GKN – a testament to the growing reputation that Tata Technology Unlisted Company is thriving in the fast-growing eMobility and embedded electronics space. 2. Partnered with a North American original equipment manufacturer (OEM) to develop an SUV for the Chinese market – the largest automotive market in the world. 3. Secured a multi-year PLM-enabled, digital thread engagement with a tier 1 automotive supplier. This solution enabled the digital representation of mechanical/electronic components and embedded software data to be linked with requirements, test and behavioral simulations, certifications, bill of materials (BOMs) and associated process plans. 4. Rolled out the next-generation ERP solution for a North American Battery Electric Vehicle (BEV) company in support of its plans to launch multiple vehicles in the calendar year 2021. 5. This year Tata Technology has secured a breakthrough deal with Government of Karnataka to modernize 150 Industrial Training Institutes (ITIs) across the state. The award was predicated upon Tata Technology proprietary i GET IT e-Learning platform and will necessitate the development of educational content in the areas of Smart Manufacturing and Industry 4.0. 6. In the first quarter last year when Covid-19 hit the economy they lost 36% of the revenue. Despite the challenges faced in the first quarter, Tata Technology able to drive revenue and operating profit improvements in each of the subsequent quarters as market conditions recovered. ESOPs In FY20-21, two option grantees, who were vested with 3,750 options in the previous financial year, exercised their options. The exercise price for these options was Rs. 645 per share. Majority Shareholder Tata Motor is the biggest shareholder in Tata Technology. It holds 72.48% equity of Tata Technology Unlisted Share. Financial Performance of Tata Technologies 1. The financial results in the fiscal 2021 were significantly impacted by COVID-19 and the revenue has declined to 2400 Crores from 2800 Crores last year. A fall of 16% in FY20-21. 2. PAT decreased by 4.9% to 239.18 crore in financial year 2020-21 compared to 251.55 crore in previous financial year. 3. Despite struggle in FY20-21, the company has managed to stay float and as per management commentary, in FY22 they have such an order book that they ever had in their lifetime. Valuation of Tata Technologies Currently, Tata Technologies Unlisted Share Price is 2800 per share. Average EPS of last 3 years = 66 per share P/E = 42x If we see the listed market and compare with IT companies such as; Infosys is currently trading at P/E of 33x. TCS is currently trading at P/E of 33x. So, currently it looks over valued in the unlisted market. Last 5 years performance of Tata Technologies Check here for more details about Tata Technologies Unlisted Share https://unlistedzone.com/shares/tata-technologies-limited-share-price-buy-sell-unlisted-shares-of-tata-technologies/