The Tata Group, a trusted name in Indian business, has consistently delivered strong financial performance across its diverse portfolio of companies. Among its numerous listed entities, three standout stocks have demonstrated more than 30% impressive compound annual growth rate (CAGR) in profits over the past three years.
These companies reflect the Tata Group’s focus on innovation, operational excellence, and long-term value creation. This article explores these high-growth Tata stocks, highlighting their exceptional performance, market strategies, and potential for investors seeking sustainable returns in India’s dynamic market landscape.
Tata Power Limited
3 Years Profit CAGR: 44%
The production, distribution, and transmission of power are the main activities of Tata Power Company Ltd. Its goal is to generate all of its electricity from renewable sources. By 2025, it intends to construct one lakh EV charging stations and produce solar roofing.
It is the biggest vertically integrated power company in India. The production, distribution, and transmission of power are the main activities of Tata Power Company Ltd. Its goal is to generate all of its electricity from renewable sources. By 2025, it intends to construct one lakh EV charging stations and produce solar roofing.
The company is India’s largest vertically integrated power company. As of H1FY24, the company has 14,381 MW energy capacity which includes 8,860MW Thermal, 1,007 MW Wind, 880 MW Hydro, 443MW Waste Heat Recovery /BFG, 3191 MW solar, and 3,760MW Renewable capacity under construction.
Tata Motors Limited
3 Years Profit CAGR: 128%
The Tata Motors Group is one of the top automakers in the world. As a member of the prestigious international conglomerate, the Tata Group, it provides a broad and varied range of automobiles, trucks, buses, sports utility vehicles, and defense vehicles to the global market.
Through a robust global network of subsidiaries, associate firms, and Joint Ventures (JVs), including Jaguar Land Rover in the UK and Tata Daewoo in South Korea, it operates in India, the UK, South Korea, South Africa, China, Brazil, Austria, and Slovakia.
Indian Hotel Company Limited
3 Years Profit CAGR: 50%
One of the top hospitality companies in India is IHCL. The portfolios of IHCL and its affiliates are diversified and span the luxury, upscale/upper upscale, and lean luxury/midscale markets. IHCL operates in more than 100 cities, 12 countries, and four continents.
The company currently operates 218 hotels with 24,136 rooms in total as of March 24. Additionally, 92 hotels totaling 12,953 rooms are in the works to expand the Taj, Vivanta, and Ginger portfolios.
In Q4FY24, the business opened 20 hotels totaling 650 rooms: 14 Tree of Life resorts, 3 SeleQtions, 1 Vivanta hotel under management contracts, and 2 Ginger hotels under ownership. In FY24, the company also opened 34 hotels and signed 53 hotels under the sales and distribution agreement.
Conclusion
These three Tata Group companies showcase exceptional profit growth, with Tata Motors leading at 128% CAGR, followed by Indian Hotels and Tata Power. Each company’s strong performance reflects successful market strategies: Tata Power’s renewable energy push, Tata Motors’ global automotive presence, and IHCL’s rapid expansion in hospitality. Their growth trajectories demonstrate the Group’s robust business fundamentals and successful expansion plans.
Written By: Dipangshu Kundu
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