TATA GROUP'S MARKET CAPITALISATION SURPASSES $400 BILLION, BOOSTED BY TCS AND TATA MOTORS

Tata Group became the first Indian conglomerate to race past a combined valuation of $400 billion on Friday. The salt-to-software group has 26 companies listed on the bourses, and they have added a whopping $100 billion over the last year.

From June lows, the aggregate market capitalisation of the group has increased by 15.4%, which stood at $401 billion (₹33.6 lakh crore) as of Friday’s close.

With a market capitalisation of $190 billion, Tata Consultancy Services (TCS) contributes 47% to the group’s valuation. Shares of India's largest IT company climbed to a record high of ₹4,422.45 on Friday.

Other than TCS, the second largest group company—Tata Motors—is also trading at a record high. Shares of Tata Motors have surged by as much as 12% in the last three sessions, following a rating upgrade from Nomura.

The foreign brokerage believes that Tata Motors can have a significant upside from Jaguar Land Rover (JLR), which will drive the company’s profit margins further higher.

According to JP Morgan, TCS delivered a strong revenue beat that picked up steam at the end of the quarter, suggesting headwinds could be receding. The key positive was improving momentum across major industries, including financial services (FS) and technology, media, and telecom (TMT).

The brokerage, which has an “overweight” rating on the stock with a target price of ₹4,600, observed that even though the pace of FY26 growth remains uncertain, we are confident in TCS’ ability to capture the upcycle as it comes back.

“We lift revenue/EPS by 1-2% over FY25–FY27 and increase the price target by 2%. We stay OW and expect TCS to participate in a growth recovery while supported by dividend yield,” J.P. Morgan wrote in an investor note.

TCS, the largest IT company, along with other group stocks like Tata Motors, Titan, and Tata Steel accounts for almost 75% of the group valuation, Bloomberg data show. The group, which employs over one million people, clocked a revenue of $165 billion in FY24, whereas the net profit crossed $10 billion during the year.

While the Mukesh Ambani-led Reliance Group ranks second with a market capitalisation of $277 billion, the Adani Group occupies the third position with a market capitalisation of $206 billion.

The three largest conglomerates in the country together boast a market valuation of $884 billion, which is higher than Spain’s market valuation.

According to Bloomberg data, Spain—the 19th largest market in the world commands a market capitalisation of $815 billion.

2024-07-26T13:09:33Z dg43tfdfdgfd