Tata Group Market Capital: The Tata Group became the first Indian business conglomerate to reach the historic milestone of having a collective market capitalization of over Rs 30 lakh crore. Increased share purchases of Tata Consultancy Services, Tata Motors, Tata Power, and Indian Hotels during the current year drove this spike in shareholder value. Notable increases were reported by Tata Consultancy Services Ltd. (up over 9 percent), Tata Motors Ltd. (up over 20 percent), Tata Power (up 18 percent), and Indian Hotels (up 16 percent). There are twenty-four Tata Group companies listed on different stock exchanges.
However, since the start of the year, Tejas Network, Tata Elxsi, and Tata Chemicals have seen losses greater than ten percent, with gains of one to five percent recorded in the remaining stocks. Notably, TCS broke the Rs 15 lakh crore market capitalization mark and surged over 4 percent to achieve a new milestone. Promising deal wins in Q3FY24—with a total contract value of $8.1 billion, up 3.8 percent from the prior year—were the driving force behind this surge. The management was upbeat about long-term growth and anticipated that client investments would increase when difficult macroeconomic conditions improve.
The UK insurance industry leader Aviva and TCS recently announced a 15-year partnership expansion with the goal of revolutionizing the “UK Life business”. Although the deal’s exact value is unknown, insiders claim it’s a massive one, usually worth more than $500 million. This comes after TCS had a seasonally weak quarter with no significant deals announced.
Strong earnings, along with other factors like the easing effects of the shortage of semiconductor chips, lower raw material prices, and robust demand, contributed to the recent surge in the price of Tata Motors’ stock. The business saw significant YoY growth in both volume and revenue—27 percent and 22 percent, respectively—with the Jaguar Land Rover (JLR) division achieving an astounding 16.2 percent EBITDA margin.
Jaguar Land Rover (JLR) has seen an improvement in its supply situation, leading to a decrease in order backlog, despite ongoing challenges with chip supply. The domestic business has performed in line with expectations, as evidenced by a noteworthy increase in revenue of 19 percent and a notable increase in EBITDA margin of 270 basis points. Future volume growth is anticipated to be driven by robust demand and the expectation of new model launches. The management maintains a positive outlook regarding the ongoing demand in the Indian market, supported by the government’s emphasis on infrastructure development and efforts to revive the economy. Analysts predict that the passenger vehicle (PV) segment will continue to grow at a rate between 5 and 7 percent for the industry in FY24.
Tata Power has grown in 2024, in line with the general trend in the electricity and energy industry. As stated in the Interim Budget 2024, the government’s increased emphasis on increasing the use of renewable energy is the basis for the expectation of additional momentum. Tata Power, a major player in the private sector, has a substantial 5,500 MW clean energy portfolio that includes hydropower, wind, and solar energy. Driven by strong demand, Indian Hotels has maintained strong performance across key metrics. The management’s upbeat outlook for the future is encouraging, leading analysts to predict a strong earnings trajectory in the coming years, bolstered by a number of growth drivers.
Also Read: TCS Market Cap Hits ₹15 Lakh Crore, Company’s Stock Reaches New Peak
