Categories: Stock Markets

Tata Group Companies and Their Market Capitalization

The industrial scenario in our country during the pre-independence and post-independence periods is absolutely different. Today India is a leading economy with many companies that have become big multinationals and have a good foothold across the globe. Among the names of the top companies since the very beginning of industrialization in India is the Tata Group. Tata Group is one of the leading business houses in India and has companies ranking among the top 5 companies in the country. The name Tata Group always instills confidence in investors and other stakeholders and is among the largest employers in the country. 

Read More – What is Fundamental Analysis in Stock Market?

About Tata Group

The Tata Group was founded in 1868 by Jamsetji Tata with a capital of Rs. 21,000. Mr. Tata had four major goals that he wanted to achieve which included setting up the iron and steel industry, building a unique hotel, a world-class institution for learning, and a hydroelectric plant. 

These visions of the founder of Tata Group have been fulfilled by the subsequent leaders of the Group. Tata Group companies had grown from US$101 million to US$5 billion under the leadership of JRD Tata and established itself as a conglomerate and had a presence across various sectors of the economy. 

Also Read: Which stocks are changing in Nifty from Sep 2022 onwards?

The glory of Tata Group is incomplete without the mention of Mr. Ratan Tata who is considered to be among the world leaders. He is the Chairman Emeritus of the Tata Group and has taken the Tata Group to a new height. Tata Sons are the primary promotor group of Tata Companies and 66% of the equity share capital of Tata Sons is held by philanthropic trusts. Tata Group is known for its commitment to society and its philanthropy and has stood by the people of the country in times of need. Today, Tata Group employs approximately 9,35,000 employees in its diverse group of companies and operates on a definite code of conduct. 

The code of conduct that Tata Group companies follows in their operations and working with different entities like employees, customers, communities and the environment, partners, financial stakeholders, government and regulators, and other group companies is mentioned below.

  • The highest moral and ethical standards
  • The highest standards of corporate governance
  • Utmost respect for human rights and dignity
  • Clear professionalism, honesty, fairness, and integrity in conducting operations of the companies.

Read more: Why do companies get themselves listed on stock exchanges?

Tata Group Companies and top companies as per market capitalization

Tata Sons are the primary promotor of the Tata Group and about 66% of the equity share capital of Tata Sons is held by philanthropic trusts. The group in total has 30 companies across 10 verticals. They have 29 listed companies with a combined market capitalization of US$314 billion as on December 2021. These companies are managed independently by their own set of Board of Directors and have a distinct vision and supervision. The top companies of Tata Group in terms of market capitalization and their brief details are provided hereunder. 

  1. TCS

TCS (Tata Consultancy Services) is the crown jewel of Tata Group which belongs to the IT sector. The company has a global presence and is also one of the top 10 IT companies in the world. TCS employs 5,92,000 employees across 55 countries and was able to generate consolidated revenues of approximately US$25.7 billion in the financial year ending March 31, 2022. The shares of the company are listed on BSE and NSE and are considered to be blue-chip stocks that can be held for a long-term investment portfolio. The key details of the company are tabled below. 

CategoryDetails
Market Capitalization Rs.11,74,976 crores
PE Ratio30.53
Return on Equity43.66%
Debt Equity Ratio0.09%
Promotor’s Holdings72.30%
Share priceRs. 3131.70
Dividend Yield1.37%
  1. Tata Motors Limited

Tata Motors Limited is the leading automobile company in India and offers a wide range of vehicles like cars, SUVs, trucks, buses as well as defense vehicles. The company launched the ambitious Tata Nano, which was Mr. Ratan Tata’s vision to provide affordable cars for every family, but failed to capture the market. However, post the initial hurdles in their motors segment, Tata Motors Limited has seen a rise in the market share and has also launched electric vehicles to be in line with the growing demand for the same. The acquisition of Jaguar Land Rover put Tata motors on a global platform. The key details of this company are highlighted below.

CategoryDetails
Market Capitalization Rs.1,68,367 crores
PE RatioNA
Return on Equity-22.93%
Debt Equity Ratio3.29%
Promotor’s Holdings46.40%
Share priceRs. 466.90
Dividend YieldNA
Check out the Fundamental analysis of Tata Motors taking on the EV Universe in India
  1. Tata Steel Limited

Tata Steel is the 10th largest steel production company in the world. The company has an approximate production capacity of 20.6MnTPA and has plans to further expand the same up to 30MnTPA by 2025 under the National Steel Policy of 2017. . It is the oldest integrated steel company established in 1907. The company has achieved its highest growth of 107% in terms of consolidated EBITDA. Tata Steel Limited employs over 65,000 employees across five continents. The key details oif the company are tabled below.

CategoryDetails
Market Capitalization Rs.1,24,947 crores
PE Ratio3.34%
Return on Equity42.6%
Debt Equity Ratio0.66%
Promotor’s Holdings33.92%
Share priceRs. 106.40
Dividend Yield4.71%
  1. Titan Company Limited

Titan Company Limited was founded in 1984 by means of a joint venture between Tata Group and Tamilnadu Industrial Development Corporation. The company is a leading player in the Jewellery, Watches, and Eyewear categories in the country with many brands that are market leaders. The key details of the company are tabled below.

CategoryDetails
Market Capitalization Rs.2,31,814 crores
PE Ratio78.72%
Return on Equity25.87%
Debt Equity Ratio0.78%
Promotor’s Holdings52.90%
Share priceRs. 2622
Dividend Yield0.29%
  1. Tata Power Company Limited

Tata Power Company Limited is the product of the ambitious vision of Jamsetji Tata with which he founded the Tata Group. This company was earlier known as Tata Electric and has the capacity to generate 12772 MW of power (30% of which comes from clean and green sources). Tata Power is leading the drive to move the country toward the EV Model by setting up EV charging stations across the country. The key details of the company are tabled below.

CategoryDetails
Market Capitalization Rs.75,714 crores
PE Ratio3.34%
Return on Equity9.74%
Debt Equity Ratio2.28%
Promotor’s Holdings46.86%
Share priceRs. 237.20
Dividend Yield0.74%

The other top companies of the Tata Group are mentioned below.

  • Tata Chemicals Limited
  • Tata Elxsi Limited
  • The India Hotels Company Limited
  • Tata Consumer Products Limited
  • Tata Communications Limited
  • Voltas Limited
  • Melco Limited
  • Tata Investment Corporation Limited
  • Tata Metaliks Limited

Invest in Tata Group Shares

Tata stocks are popular with Indian investors because of their strong financial history and reliability. Here are 2 common ways that investors can use to invest in Tata stocks:

  1. Mutual funds – By investing in equity mutual funds that have shown positive historical performance, investors can gain exposure to Tata group shares. Investors must check whether the mutual fund portfolio includes any of the Tata group stocks before investing in them.
  2. Stock markets – For investors who have some experience in stock market investments, Tata group stocks can be bought / sold directly through a Demat account.

Conclusion

Tata Group is the foremost name in various Indian sectors with about 30 companies under its roof. Tata Group is not only one of the largest private sector employers but also is synonymous with the welfare of the nation and its citizens. The philosophy of this group is that the company will not just be focusing on its own interests but on the collective interest of its employees, shareholders, creditors, and consumers (in the national and international community)

FAQs

What is the biggest company in the Tata Group?

TCS is the biggest company in the Tata Group in terms of market capitalization.

How many Tata Group companies are listed in stock markets?

Tata Group has 29 listed companies in stock markets that have business across 10 verticles.

Is investment in TCS considered to be safer for beginners?

TCS is a large-cap company also referred to as a blue chip company. These stocks traditionally are less volatile and therefore can be a good investment option for a long-term horizon. These stocks, therefore, make a good addition to the portfolio of beginners.

What is the market capitalization of Tata Group as a whole?

The market capitalization of Tata Group as a whole is approximately US$314 billion as on December 2021.

Which Tata Group Companies showed the Highest market rally in recent times?

In the recent market rally, the following four companies of the Tata Group showed the biggest jump,
-Tata Teleservices – over 3600% 
-Tata Elxsi – approximately 1300% 
-Automotive Stampings and Assemblies – approximately 1220%
-Tejas Networks – approximately 970%

Marisha Bhatt

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