How Tata Group achieved ₹30 lakh cr market cap milestone
Upstox
4 min read • Updated: February 12, 2024, 6:07 PM
Summary
The Tata Group is the first Indian conglomerate to achieve a market capitalisation of ₹30 lakh crore. TCS, the largest contributor to the Tata Group, has achieved a market capitalisation of more than ₹15 lakh crore.
On 6th February 2024, the Tata Group became India’s first conglomerate to reach a combined market capitalization of ₹30 lakh crore.
Over the past 2 months, the market capitalisation of the group companies has increased by about 7%. In comparison, the Nifty, which represents the value of the broader Indian market, has remained flat.
The Tata Group, one of India’s oldest and biggest corporations, encompasses 29 companies with interests in diverse industries including technology, steel, consumer products, retail, finance, chemicals, power and more.
This achievement has been powered by increased investor interest in key group companies like Tata Consultancy Services, Tata Power, Tata Consumer Products, and Tata Motors.
Here's a list of 24 Tata companies and their growth in market capitalisation:
| Tata Companies | M-cap Dec 2023 | M-cap Feb 2024 | Difference in M-cap |
|---|---|---|---|
| Tata Consultancy Services | 1,373,046.12 | 1,512,450.59 | 139,404.47 |
| Titan Company | 326,345.75 | 316,029.68 | -10,311.07 |
| Tata Motors | 259,431.29 | 312,164.87 | 52,733.58 |
| Tata Steel | 171,546.80 | 179,192.74 | 7,645.94 |
| Trent | 108,642.30 | 107,872.67 | -7,69.63 |
| Tata Power Company | 106,101.25 | 125,560.87 | 19,459.62 |
| Tata Consumer Products | 100,964.99 | 110,581.24 | 9,616.25 |
| The Indian Hotels | 62,374.80 | 72,039.91 | 9,665.11 |
| Tata Elxsi | 54,539.84 | 48,056.86 | -6,482.98 |
| Tata Communications | 50,437.88 | 48,458.55 | -1,979.33 |
| Tata Technologies | 47,887.14 | 45,889.22 | -1,997.92 |
| Voltas | 32,375.42 | 34,029.84 | 1,654.42 |
| Tata Chemicals | 28,117.45 | 25,270.55 | -2,846.90 |
| Tata Investment Corporation | 21,670.22 | 28,178.29 | 6,508.07 |
| Tata Teleservices | 17,930.60 | 17,989.24 | 58.64 |
| Tejas Networks | 14,784.95 | 12,886.02 | -1,898.93 |
| Rallis India | 4,857.83 | 5,172.87 | 315.04 |
| Tata Metalinks | 3,394.11 | 3,508.42 | 114.31 |
| Oriental Hotels | 2,180.70 | 2,342.33 | 161.63 |
| Nelco | 1,812.92 | 1,802.88 | -10.04 |
| Benares Hotels | 1,164.94 | 1,241.77 | 76.83 |
| Automobile Corporation of Goa | 866.29 | 1,065.51 | 199.22 |
| Automotive Stampings and Assemblies | 667.02 | 737.69 | 70.67 |
| TRF | 278.69 | 299.28 | 20.59 |
| Tata Group Total Mcap | 2,791,419.30 | 3,012,821.89 | 221,402.59 |
Tata Consultancy Services has emerged as the biggest creator of value for the Tata Group by reaching a market capitalisation of more than ₹15 lakh crore. The company has recorded a growth of over 9% in market capitalisation since the start of January 2024. Presently the technology giant accounts for more than 50% of the group's market cap.
The performance of Tata Motors, the motor-vehicle manufacturing arm of the Tata Group, has been particularly impressive. The company has displayed promise by clocking in a growth of over 18% in mcap since January 2024. Additionally, the firm has achieved an impressive YoY volume growth of 27% and 22% YoY growth in revenue. These advancements can be attributed to factors like improved semiconductor supply, increased demand, and a reduction in raw material prices. In fact, since the COVID crash, Tata Motors shares have gone up from as little as ₹ 70 to as much as ₹ 920 now.
Tata Power, a leading player in the private sector, retains a substantial clean energy portfolio which includes wind, hydro energy and solar. It has demonstrated considerable growth in market cap of over 16% since January 2024. With a difference of ₹19,459.62 from 2023 to 2024, the power powerhouse emulates a positive trajectory, aligned with power and energy sector trends. The company could potentially expect an additional thrust as a result of the government prioritising the shift to renewable energy.
Conclusion Tata Group's landmark accomplishment of becoming India’s first Indian conglomerate to achieve a market capitalisation of ₹30 lakh crore is an encouragement to India’s growing economy.
It must also be noted that a large number of Tata Group companies are listed, and hence their value is known.
There are others, such as Mukesh Ambani’s Reliance Group, where only Reliance Industries, Jio Financial Services and TV18/Network18 are listed, commanding a cumulative market capitalisation of ₹ 2,161,443 crore. It is not known what the Reliance Group’s value will be if Reliance decides to list its key companies such as its retail or telecom arms.