Tata Group: OK Tata: Group m-cap gallops to Rs 30 lakh crore

Mumbai: The Tata Group, which brought integrated steelmaking to Asia and chronicled India’s journey into industrial adulthood through the decades before and after Independence, exceeded ₹30 lakh crore in market value for the first time on Tuesday after the century-old conglomerate’s software bellwether surged to a lifetime high on expectations of a rebound in outsourcing business either side of the Atlantic seaboard.

Tata Consultancy Services (TCS), which announced winning a new deal from Europ Assistance, advanced 4% on Tuesday, providing a cue for other software stocks.

Big Gains for Group Cos’ Stocks in 6 Months
This helped the Tata Group make up nearly 8% of India’s total market capitalisation through 28 listed stocks.

The Reliance Group, India’s most valuable company led by billionaire Mukesh Ambani, currently holds the second position on the market-cap leaderboard – at ₹21.60 lakh crore. The Adani Group, with interests across various infrastructure sectors and capital-intensive commodities, is ranked third, with a combined market value of ₹15.54 lakh crore.

In FY24, the market capitalisation of the Tata Group has surged more than 46%, surpassing the growth rates at both the Reliance Group, which saw a 35% increase, and the Bajaj Group, which experienced a 36% uptick. Meanwhile, the Adani Group has staged a notable recovery, with its market wealth rebounding 70% since April 1 of the previous year. This resurgence comes after the Adani Group faced a $150-billion wealth erosion following the publication of an adverse report by US short-seller Hindenburg in January last year. The Adani Group has steadfastly denied the allegations made in that report.

Half a dozen Tata Group stocks have rallied between 50% and 120% over the past six months. The Tata Investment Corp stock more than doubled in six months, while Trent and Tata Power jumped 78% and 67%, respectively. Tata Motors and Indian Hotels shares gained over 50% in six months.
On Tuesday, the group’s flagship company, TCS, crossed the ₹15-lakh crore mark in market capitalisation. On January 30, Tata Motors, India’s biggest automotive company by sales, achieved a significant milestone surpassing Maruti Suzuki in market capitalisation for the first time in nearly seven years.
In November, another Tata Group company, Titan, crossed ₹3 lakh crore in market value in a glittering testimony to the Indian consumer’s swift ascent along the luxury gradient, underpinned by rising disposable incomes.

Four other group companies – Tata Steel, Tata Power, Tata Consumer and Trent – are valued at more than ₹1 lakh crore. Tata Group companies have showcased remarkable performance in the nine months leading up to December 2023, with a notable revenue growth of nearly 15%. The group’s overall profits experienced a significant surge, rising 17% to reach ₹51,786 crore for the period.

During the nine months ending December 2023, Tata Motors witnessed a substantial revenue surge of 33%, reaching ₹3.15 lakh crore. Similarly, Titan reported a commendable growth of 24%, with revenues totaling ₹35,522 crore during the same period.

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