New Delhi, Oct. 3 -- If Warren Buffett's Berkshire Hathaway's valuation is the benchmark, Tata Investment Corp. Ltd (TICL) looks overpriced. Berkshire's market capitalization (mcap) of $1.08 trillion compared to its $1.15 trillion in assets gives it a mcap-to-assets ratio of ~1. By contrast, TICL's ratio now stands at 1.5x after a 50% September rally lifted its mcap to nearly Rs.54,000 crore.

Nearly 70% of TICL's September gains came in just two sessions-on 23 September after a stock split (10-for-1) announcement, and on 30 September after Tata Capital's IPO details were revealed. A closer look at both reasons suggests the stock's reaction may be euphoric.

The stock split at TICL will improve liquidity but leaves fundamentals unchanged....