TATA Group Market Cap Crosses $300 bn: Who says that the Good boys finish last. The Good boy of the Indian Business ecosystem has added another feather to its cap.
And this time they have surpassed the expectations of the market and they have pleasantly surprised a lot. Yes, we are talking about the TATA group. They have managed to surpass the Group’s Market Capitalization of $300 bn.
27 out of the 28 companies listed on the stock exchange for TATA group have been able to generate positive returns for its investors and traders.
India’s largest business conglomerate has been able to add $84.75 bn to its market value since the beginning of the year. And most of its listed entities have been able to generate a return of 15% to 370% during the year.
Who are the major contributors to the $300 bn Market Capitalization of the TATA group?
Although there are 28 companies listed on the exchange for the TATA group. But there are a few prominent names who have contributed majorly to this rise in Market capitalization. The top 5 contributors include:
- TATA consultancy Services (52% of total market capitalization)
- TATA steel Limited (16.22%)
- TATA Motors Limited (6.75%)
- Titan Co. Limited (5.07%)
- TATA Consumers Limited (4.1%) and so on.
(Source: Capitaline and livemint.com)
TATA group companies that have gained the most during this year
It is not just one company of the group that has led to this massive surge in Market Capitalization, the growth has come from various quarters.
Six companies in the TATA group have registered a growth of more than 100%, nine companies have registered growth between 50-100%. About twelve companies have registered a growth in the range of 15-50%.
And the only stock in the group which has not registered any growth this year is Rallis India (down by nearly 1%). So, such has been the spectrum of growth and most importantly, the growth is spread across the group.
Factors contributing to the growth of such magnitude
Growth of such stature doesn’t come without consolidated effort… It has to be a contribution from multiple factors, and the following are some of them:
- Most importantly, all the group companies have been able to maintain debt within the acceptable levels, and which has played a major role in maintaining the investors sentiment positive.
- Recovery in the domestic consumption post COVID-19 has also played a major role in the growth of TATA Group shares.
- The Global rise in the demand of luxury cars has played a significant role in the rising demand for the Jaguars and Land Rovers. And which has had a boosting impact on the share prices of TATA Motors.
- TATA group has been consistently trying to increase their holdings in their companies. They have able to increase their share in TATA power from 35.27% to 45.2%. They also managed to increase their holdings in Air Asia (unlisted) to nearly 84%.
- And the TATA group is no longer considered to be a traditional organisation. Group companies like TCS and TATA motors have garnered a lot of attention in the millennials group, who eventually are the investors for current and future generations.
Future Outlook of TATA group
TATA group believes in the philosophy of Change is the only constant. They believe that the future of the digital world lies in how “people” and “things” interact with each other and move in tandem.
With a complete focus on digitization and the “One TATA” motto, a lot of positive modern changes can be expected from this group. And, they are also one of the pioneers and first movers who have entered in the Electric Vehicle segment in a big way.
With the focused presence in multiple sectors and also with the modernisation in management, but not at the cost of its employee welfare, this group still remains to be the most sought after.
And with 28 companies listed in the stock exchange and many more listing possible in the years to come, this group could very well become the benchmark which could very well show the overall health of the economy.
And if the words of the financial analysts are to be believed, there is still huge upside potential in the share prices of TATA group companies. Analysts predict that TATA Group Market Cap will be $350 bn by 2025.
Happy Investing and Money Making!
Hitesh Singhi is an active derivative trader with over +10 years of experience of trading in Futures and Options in Indian Equity market and International energy products like Brent Crude, WTI Crude, RBOB, Gasoline etc. He has traded on BSE, NSE, ICE Exchange & NYMEX Exchange. By qualification, Hitesh has a graduate degree in Business Management and an MBA in Finance. Connect with Hitesh over Twitter here!