Tata group again becomes the country’s most valuable business group
The Tata group has once again become the most valuable business group in the country. Shares of Tata group companies have gone up sharply, the market capitalization of listed companies of this group has crossed Rs 17 lakh crore.
The total market capitalization of HDFC group companies is Rs 15.25 lakh crore. Analysts say that Tata group companies have made better use of resources. This has affected the other group companies.
In the last one month, the value of the Tata group has increased by 1.9 lakh crores (13 percent), while in the last one year it has increased by 3.33 lakh crores (42 percent). The Sensex has registered a growth of 19 percent in the last one year.
Pankaj Pandey, head of research, ICICI Securities, said, “The market is buoyed by the surge in Tata Group shares. The company has taken the right decision in terms of capital allocation. There have been structural changes in the group companies, which are now showing results.”
In February 2017, N Chandrasekaran took over as Chairman of the Tata Group. He said that capital allocation was his priority. Apart from Tata, HDFC, Reliance, Bajaj and ICICI are among the largest groups in the country.
HDFC Group’s valuation has increased by 15 percent compared to the 42 percent rise in the value of the Tata group. About a year and a half ago, the market capitalization of HDFC Group companies was more than the 151 years old Tata group.
Mukesh Ambani’s Reliance Group has increased its value by 27 percent and Bajaj Group’s value by 11 percent. A total of 28 companies of the Tata group are listed in India, of which 18 have outperformed the Nifty 50 index in the last one month.
TCS shares have risen 13 percent compared to the Nifty’s 7.5 percent gain. TCS has the biggest hand in increasing the group’s valuation. Apart from this, Tata Steel and Tata Motors have also increased the valuation of the group.
Tata Motors shares have risen 36 percent in the last one month following the rise in car sales and breakthroughs. Similarly, the record rise in steel prices has increased Tata Steel’s share price by 14 percent.
Abhimanyu Sofat, head of research, IIFL Securities, said, “Many businesses of the Tata group like IT, steel auto, chemical and consumer are doing well. Rising commodity prices have boosted the business.”
Tata Consumer shares have risen 80 percent in the last one year. Talk about other companies of Tata group, Tata Elxsi, Tata Steel Long Products, Tata Power, Tata Steel BSL, Rallies India shares have shown a jump of 15 to 48%.
