Steel to Software Giant: Tata Group Crosses ₹30 Lakh Crore Market Cap

7 Feb 2024 , 11:00 AM

On February 6, the Tata Group’s combined market capitalization exceeded ₹30 Lakh Crore, making it the first Indian business enterprise to reach that milestone.  This year’s buying interest in shares of Indian Hotels, Tata Consultancy Services, Tata Motors, and Tata Power has contributed to the growth in shareholder wealth.

Tata Consultancy Services Ltd. has increased by more than 9% thus far in 2024, while Tata Motors Ltd. has increased by more than 20%. Indian Hotels gained 16%, and Tata Power increased by 18%. Twenty-four Tata Group firms are listed on exchanges.

Tejas Network, Tata Elxsi, and Tata Chemicals have all seen stock losses of more than 10% so far this year, while the rest stocks have increased by 1% to 5%.

On February 6, TCS surged more than 4% and passed the ₹15 Lakh Crore market valuation, setting a new record. The increase is due to positive deal wins in Q3FY24, which had a $8.1 Billion total contract value, up 3.8% over the prior year. As the difficult macroeconomic conditions fade, the management expressed confidence in long-term growth and projected an increase in client investments.

Recently, TCS and UK insurance leader Aviva announced a 15-year cooperation 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 traditionally bad quarter with no significant acquisitions announced.

Strong earnings, together with other factors including the softening effects of the shortage of semiconductor chips, decreased raw material prices, and robust demand, contributed to the recent jump in the price of Tata Motors’ stock. The business had significant YoY increase in both volume and revenue—27% and 22%, respectively—with the Jaguar Land Rover (JLR) segment achieving an astounding 16.2% EBITDA margin.

The backlog of orders has decreased due to JLR’s improved supply, but persistent issues with chips. The domestic business had comparable performance, increasing revenue by 19% and the EBITDA margin by a noteworthy 270 basis points. Strong demand and the introduction of new models are anticipated to increase future volumes. Because of the government’s concentration on infrastructure development and the economy’s recovery, the management is optimistic about the Indian market’s ability to sustain demand. According to analysts, the PV business is expected to maintain its momentum in FY24, with an industry rise of 5-7% predicted.

Tata Power’s growth in 2024 was consistent with the general trend in the power and energy industry. The government’s increasing emphasis on expanding the usage of renewable energy in the Interim Budget 2024 has led to expectations of greater momentum. Tata Power, one of the top companies in the private sector, has a sizable 5,500 MW clean energy portfolio that includes hydroelectric, wind, and solar energy.

Due to high demand, Indian hotels continued to perform well across key parameters. Because of management’s positive perspective for the future, experts believe that the company will see strong profits growth in the upcoming years due to a number of growth factors.

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