Best Tata Group Stocks Under Rs 500: Pratik Gandi starring as Harshad Mehta remarks in the famous ‘Scam 1992’ series, “Utha lo Tata ka koi bhi stock. Ek na ek din toh upar jana hi hai.” Not that it is investment advice, but it does highlight the strong faith Indian investors have in the Tata Group stocks.
If you closely follow the house of Tatas, we have a gold mine for you. In this article, we present you some best Tata Group stocks under Rs 500 which you can add to your watchlist.
Table of Contents
Best Tata Group Stocks Under Rs 500
For our article on the best Tata Group stocks under Rs 500, we’ll look at a variety of companies of the legacy business empire from multiple industries including hospitality, steel, agrochemicals, etc.
We’ll learn how they make money and stand on the financial front. In the end, a table compiles some more companies of the group, followed by a summary which concludes the article.
Best Tata Group Stocks Under Rs 500 #1 – Indian Hotels Co.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹393 | Market Cap (Cr.) | ₹56,226 |
| EPS | ₹7 | Stock P/E | 53.22 |
| RoE | 13% | RoCE | 13..% |
| Promoter Holding | 38% | Book Value | ₹56 |
| Debt to Equity | 0.39 | Price to Book Value | 6.94 |
| Net Profit Margin | 17% | Operating Margin | 31% |
Owner of the famed Taj Hotels brand, Indian Hotels Company Ltd. (IHCL) traces its roots back to 1899. Sir Jamsetji Tata launched the first hotel in Bombay (now known as Mumbai) naming it The Taj Mahal Palace. Over the years, the company grew to become the largest hospitality company in the whole of South Asia with Indian roots.
IHCL runs hotels, resorts, and homestays under its well-known brands including Taj (flagship brand), Vivanta, Ginger and amã Stays & Trails. The hospitality giant has a large portfolio of 188 operational hotels and another 75 in the pipeline taking the total count to 263.
Talking about its geographical presence, it has a global presence with its properties not just in India but also in the US, UAE, South Africa, Bhutan, Maldives, and more.
In addition to the hotel business, IHCL also operates an airline catering joint venture with SATS, a Singapore-based airport service provider. TajSATS, the JV is the nation’s prominent airline caterer with a big 42% market share. It has a presence in 6 major Indian cities and serves over 100,000 meals per day.
And that’s not all, IHCL also runs spas, boutiques, salons, restaurants, bars, an international business club, and a culinary & food delivery platform.
IHCL earned a net profit of Rs 1,053 crore in FY23 on revenues of Rs 5.810 crore. The company was in losses for the last two years because of the Covid-19 pandemic. Its stock currently trades at a P/E of 53.22. It is a key portfolio holding of the late investor Rakesh Jhunjhunwala.
Best Tata Group Stocks Under Rs 500 #2 – Tata Coffee
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹245.85 | Market Cap (Cr.) | ₹4,556.26 |
| EPS | ₹14 | Stock P/E | 17.17 |
| RoE | 10% | RoCE | 12% |
| Promoter Holding | 58% | Book Value | ₹96 |
| Debt to Equity | 0.62 | Price to Book Value | 2.47 |
| Net Profit Margin | 7% | Operating Margin | 14% |
Tata Coffee is involved in the business of producing, trading and distributing coffee, tea and allied products. It is the largest integrated coffee company in India undertaking all the activities from running an estate to processing and distribution.
Its operations are spread across the globe with presence key presence in India, the USA, CIS countries, Europe, Africa and Vietnam. It owns multiple tea and coffee estates and processing facilities. Along with it, the company is also engaged in the growing of pepper and other products.
After processing, these products are distributed as white-label products to other companies. Thus, as a feather in its cap, Tata Coffee is the largest instant coffee producer and distributor in India.
As part of its extended portfolio of services, it goes the extra mile and offers customized packaging solutions to its customers.
As for the product segments, coffee production and manufacturing of coffee products are key revenue streams for the company with revenue shares of 29.85% and 53.61% respectively. The balance 7.25% and 9.28% come from tea production and pepper production respectively.
Tata Coffee is a small-cap Tata stock with a market capitalization of Rs 4,556 crore. The salt-to-software Tata Group owns a 58% stake in the company the stock of which presently trades at a P/E of 17.17.
Best Tata Group Stocks Under Rs 500 #3 – Tata Power Company
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹233.35 | Market Cap (Cr.) | ₹75,298 |
| EPS | ₹10 | Stock P/E | 22 |
| RoE | 13% | RoCE | 12% |
| Promoter Holding | 47% | Book Value | ₹90 |
| Debt to Equity | 1.84 | Price to Book Value | 2.51 |
| Net Profit Margin | 7% | Operating Margin | 14% |
Tata Power Company (TCPL) is one of the most diverse power companies in India. It is one of the nation’s largest integrated power producers with a legacy of over 110 years. It is engaged in electricity generation through renewable energy & conventional power, distribution & transmission and also offers next-generation power solutions.
The power giant was set up in 1910 as Tata Hydroelectric Power Supply Company. It was later merged in 1916 with Andhra Valley Power Supply Company. The rest is history.
As of the present date, it has a power generation capacity of 14,130 MW out of which 37% is clean energy. It has operations in multiple countries including Bhutan, Nepal, South Africa, Singapore, and more in addition to India.
Its clean energy portfolio includes wind power production and solar power generation. In addition to this, the company also undertakes solar rooftop and microgrid projects. What’s more? It also has a solar module production capacity of 400 MW with an added cell capacity of 300 MW.
And that’s not all, TCPL also has hydropower plants, thermal power generation plants, and waste heat generation facilities. As part of its integrated business model, it is also engaged in power transmission and distribution.
The diverse power company boasts a market capitalization of Rs 75,298 crore. It reported a profit after tax of Rs 3,810 crore in FY23 with a revenue of Rs 55,109 crore. Its topline and bottom line both have increased consistently over the previous four years.
Best Tata Group Stocks Under Rs 500 #4 – Rallis India
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹215.45 | Market Cap (Cr.) | ₹4,179.14 |
| EPS | ₹5 | Stock P/E | 47.78 |
| RoE | 5% | RoCE | 8% |
| Promoter Holding | 50% | Book Value | ₹89 |
| Debt to Equity | 0.08 | Price to Book Value | 2.36 |
| Net Profit Margin | 3% | Operating Margin | 7% |
Rallis India is another small cap Tata Group stock under Rs 500 in our list. It is a listed subsidiary of Tata Chemicals. The salt-to-software conglomerate Tata Group holds a 50.09% stake in the business through Tata Chemicals.
Rallis is engaged in the production and marketing of a wide range of agrochemicals and crop products. Its portfolio of products includes herbicides, insecticides, fungicides, bio-pesticides, organic fertilizers, seeds and other plant growth nutrients.
Its products are sold in 80+ countries across the globe. This provides Rallis with a diversified revenue stream with 37% income from international markets in FY23.
As for its domestic operations, it has a robust distribution network in place with 6,000+ dealers and 70,000+ retailers.
Rallis is a debt-free stock with a negligible debt-to-equity ratio of 0.06. It is also one of the picks of the late investor Rakesh Jhunjhunwala. As per the latest filing data available, his family & associates own a 7.8% stake in agrochemicals company.
Best Tata Group Stocks Under Rs 500 #5 – Tata Steel
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹118.85 | Market Cap (Cr.) | ₹1,45,435 |
| EPS | ₹7 | Stock P/E | 89.26 |
| RoE | 7% | RoCE | 13% |
| Promoter Holding | 34% | Book Value | ₹84 |
| Debt to Equity | 0.7 | Price to Book Value | 1.38 |
| Net Profit Margin | 3% | Operating Margin | 13% |
Tata Steel was founded in 1907 as Tata Iron and Steel Company (TISCO) as Asia’s first private steel company. The first plant was installed at Jamshedpur which also eventually led to its development as the first industrial town of India.
Over the years, the company went through various ups and downs from fighting the government’s efforts to make it a publicly-owned steel producer to bearing the brunt of its loss-making European operations.
As of the present date, Tata Steel is the second-largest steel producer in India and one of the top steel manufacturers in globally. It has a consolidated steel manufacturing of 35 MnTPA. The steel behemoth employs more than 77,000 people in 26 countries.
Tata Steel has grown organically and inorganically over the years acquiring some well-known steel companies such as NatSteel, Corus, Bhushan Steel, and Nilachal Ispat Nigam.
Its steel plants produce automotive and special products, industrial products, retail-branded products, hot-rolled steel, metallic-coated steel, pre-finished steels, alloy steels, profiles & construction systems, and value-added products and services.
Tata Steel recently had a stock split after which its stock trades at Rs 118 per share giving a market capitalization of Rs 1,45,435 crore.
List of Top Tata Group Stocks Under Rs 500
The table below puts together the names we covered above along with some more stocks of the Tata Group trading under Rs 500.
| Company Name | CMP | Market Cap | Industry |
|---|---|---|---|
| Indian Hotels Co. | ₹393.25 | ₹56,226 | Hospitality |
| Tata Coffee | ₹245.85 | ₹4,556.26 | Tea/Coffee |
| Tata Power Co. | ₹233.35 | ₹75,298 | Power Generation & Disribution |
| Rallis India | ₹215.5 | ₹4,179.14 | Agrochemicals |
| Tata Steel | ₹118 | 1,45,435 | Iron & Steel |
| Tinplat Co. of India | ₹368.4 | ₹3,819.32 | Iron & Steel |
| Tata Teleserv. (Maha.) | ₹78.65 | ₹15,584 | Telecommunication |
| Oriental Hotels | ₹87 | ₹1,550 | Hospitality |
| Automotive Stampings & Ass. | ₹397.5 | ₹630.37 | Auto Ancillary |
Conclusion
We learnt about some of the best Tata Group Stocks under Rs 500 above. Many of them have delivered impressive returns to their shareholders recently. However, investors must not turn a blind eye to the financials of any stock just because it is part of a big business group.
Multiple investors lost wealth when Tata Motors reported back-to-back losses in the past. It became profitable in FY23 after four years of billions of losses. What is your take on the Tata Group stocks? Are you an investor in any Tata company? How about we continue this conversation in the comments below?
Written By Vikalp Mishra
By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions.
