The market capitalization of Tata Group, standing at $365 billion, has surpassed Pakistan’s GDP, estimated by the IMF to be nearly $341 billion. This milestone comes after several companies within the conglomerate yielded significant returns within one year. Valued at approximately Rs 15 lakh crore or $170 billion, Tata Consultancy Services (TCS) ranks India’s second-largest company and is roughly half the size of Pakistan’s economy. The aggregate market capitalization of Tata Group enterprises, as highlighted by The Economic Times, now exceeds Pakistan’s GDP.
The report underscores the remarkable returns from publicly listed companies within the diverse Tata Group, culminating in their collective value surpassing Pakistan’s economic output. This development unfolds against the backdrop of Pakistan grappling with substantial debt and inflationary challenges. According to the report, Tata Group’s combined market capitalization stands at roughly $365 billion (approximately Rs 30 lakh crore), eclipsing the estimated GDP of Pakistan, which the IMF places at around $341 billion (Rs 28 lakh crore approx).
TCS Emerges as Tata’s Premier Asset, Dwarfing Cash-Strapped Pakistan
In the realm of publicly listed entities within the Tata Group, the Information Technology titan TCS emerges as the flagship, boasting a market capitalization nearing Rs 15 lakh crore or $170 billion. According to IMF calculations, TCS alone represents approximately half the magnitude of Pakistan’s economically challenged and debt-laden economy.
While the entirety of Tata Group companies has contributed to the significant surge in the conglomerate’s overall market value, the most substantial gains have been attributed to remarkable returns from Tata Motors and Trent, yielding multi-bagger returns. Tata Motors shares have surged remarkably by 110% over a year, while Trent has witnessed an impressive gain of 200%. This remarkable performance is complemented by the positive trajectory of stocks in other Tata Group companies, including Tata Technologies, TRF, Beneras Hotels, Tata Investment Corporation, Tata Motors, Automobile Corporation of Goa, and Artson Engineering.
Unlisted Segment of Tata Companies
Considering the estimated market value of unlisted Tata companies such as Tata Sons, Tata Capital, Tata Play, Tata Advanced Systems, and the airlines business (Air India and Vistara), among others, the might of the Tatas could potentially grow by another $160-170 billion or more.
The recent surge in Tata Group’s market value has largely stemmed from multi-bagger returns in Tata Motors and Trent, alongside the healthy rally observed in Titan, TCS, and Tata Power over the past year. At least 8 Tata companies, including the recently-listed Tata Technologies, have more than doubled their wealth in the last year – TRF, Trent, Benaras Hotels, Tata Investment Corporation, Tata Motors, Automobile Corporation of Goa, and Artson Engineering.
However, data from ACE Equity indicates that the only Tata entity to have experienced wealth erosion in the past 12 months is Tata Chemicals, which has decreased by 5 per cent over the year.
Tata Group’s Strategic Listing Plans
The group intends to list Tata Capital Financial Services, the financial services business holding company, by 2025. The company commands a market value of Rs 2.7 lakh crore in the unlisted market. This move aligns with the Reserve Bank of India’s (RBI’s) guidelines to list upper-layer NBFCs. In September 2023, both Tata Capital Financial Services and its parent firm, Tata Sons Private Limited, were identified as NBFC’s “upper layer” by the RBI. This designation necessitates a stringent disciplinary structure and mandatory listing within three years for both companies.
Tata Play has already received Sebi’s nod for IPO, but the timeline for its debut is yet to be announced.
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