Tata Group achieved a historic milestone as its combined market capitalization surpassed Rs 30 lakh crore on February 6, making it the first Indian business house to reach this valuation.
The overall valuation of Tata Group now stands at Rs 30.6 lakh crore, making it the most valued conglomerate in the country, surpassing Reliance Group and Adani Group in market cap rankings.
TCS, the flagship company, witnessed a notable surge of over 9% in 2024, reaching a market cap of Rs 15 lakh crore on February 5. This growth is credited to positive deal wins in Q3FY24, totalling $8.1 billion, reflecting a 3.8% increase from the previous year. TCS management expressed confidence in long-term growth, expecting client investments to rise post-challenging macro conditions.
Drivers of growth
The surge in market value is attributed to increased investor interest in shares of Tata Consultancy Services (TCS), Tata Motors, Tata Power, and Indian Hotels since the beginning of the year.
Tata Motors experienced a significant uptick in its stock in the past month, driven by strong earnings and favourable factors such as the easing impact of semiconductor chip shortage, lower raw material prices, and robust demand. The company achieved a remarkable 27% YoY volume growth and a substantial 22% YoY revenue growth, with the Jaguar Land Rover (JLR) division posting an impressive 16.2% EBITDA margin.
Tata Power stock too grew this year on anticipation of additional momentum from the government’s increased emphasis on expanding renewable energy use in the Interim Budget 2024. Tata Power, as a leading private sector player, boasts a substantial clean energy portfolio of 5,500 MW, covering solar, wind, and hydropower.
Indian Hotels sustained strong performance across key metrics, driven by robust demand. The optimistic future outlook from management suggests a robust earnings trajectory in the coming years, supported by various growth factors.
