The past year has been exceptionally rewarding for investors in the Indian stock market, with the BSE Sensex delivering a remarkable total return of over 18%. This growth has been witnessed across various sectors, showcasing the buoyancy of the market.
Among the standout performers, Trent and Titan have experienced significant surges of 66% and 45%, respectively, over the past year. Titan’s impressive growth can be attributed to its improved market share and increased demand for jewellery and watches. On the other hand, Trent has surpassed expectations by achieving strong business performance, primarily driven by its aggressive store expansion and effective utilization of its digital presence.
Another notable stock is Tata Motors, which has achieved remarkable growth of 40% in the same period. The company’s success can be attributed to its first quarterly profit in two years, which was fueled by rising demand for passenger cars and medium and heavy commercial vehicles.
Indian Hotels, on the other hand, has witnessed a substantial increase of 73% due to higher utilization levels, resulting in higher net profits.
Tata Communications has delivered a notable return of 40% as well. This can be attributed to the positive long-term outlook for the company and its strong business performance in the past.
Although these high-performing stocks belong to different industries, they all share a common trait—they are part of the renowned and trusted Indian business conglomerate, the Tata group.
The Tata group has a proven track record of establishing successful businesses across a wide range of industries over several decades. Whether it is the IT industry, where it has nurtured blockbuster stocks like Tata Elxsi and the industry giant Tata Consultancy Services (TCS), or the retail sector, where it has developed distinguished brands such as Tata Consumer Products, Trent, and Titan, the group’s ability to excel across industries is evident. Investors often place their trust in the Tata group share due to its history of creating value and driving growth in various sectors.
In addition to its achievements in various sectors, the Tata group share has also experienced strong returns in the telecommunications industry, with Tata Communications and Tata Teleservices showing impressive growth of 68% and 64% respectively over the past year.
The group has also demonstrated its expertise in the manufacturing sector, which is home to giants like Voltas, Tata Steel, and Tata Consumer. The Tata group’s success extends beyond these sectors, with high-performing companies consistently emerging every five years, delivering substantial returns to shareholders.
The remarkable performance of these numerous outperformers, all belonging to the Tata group, highlights the conglomerate’s reputation for consistently providing value to investors. But what sets the Tata group apart? What makes it special?
The Tata name is synonymous with trust, earning the confidence of investors and consumers alike. This trust is built on a long history of delivering quality products and services across its diverse portfolio of businesses. Despite facing intense competition, the Tata group has maintained strong ethical standards and transparency throughout its operations.
Furthermore, the Tata name carries a legacy that spans over a century, solidifying the trust in the group. This enduring reputation serves as the foundation for delivering business value.
Two years ago, in September 2021, we conducted a poll involving 17 popular corporate groups in India. With responses from 5,274 participants, the Tata Group emerged as the clear winner, capturing a remarkable 66.3% of the total votes. In contrast, the other 16 corporate groups, such as Hero, Jindal, and RPG, received only up to 5% of the votes each.
This impeccable reputation has not only attracted consumers and investors but has also allowed the Tata group to attract top talent. This talented workforce has propelled the business forward through strategic and profitable investments.
The Tata Group has actively evolved with the changing times, continuously innovating its business practices. It has diversified and made strategic investments, expanding both organically and inorganically. While some of its international endeavors may not have been as successful, the group’s organic business growth has been remarkably prosperous.
These new investments in profitable sectors have allowed the group to enter new markets and capitalize on synergies, resulting in a diverse business portfolio that spans from salt to IT. The group boasts reputable brands such as Tata Tea, Westside, Titan, Tata Motors, and TCS, solidifying its presence in various industries.
| A | B | C | D | E | |
|---|---|---|---|---|---|
| 1 | Company Name | Market Cap (Rs. m) | Net Sales (Rs. m) | Net Profit (Rs. m) | Return on Equity (%) |
| 2 | Tata Consultancy Services Ltd. | 1,19,19,177 | 16,03,410 | 3,81,870 | 50.80% |
| 3 | Titan Company Ltd. | 26,36,503 | 2,72,100 | 21,800 | 25.80% |
| 4 | Tata Motors Ltd. | 19,30,450 | 4,72,637 | -17,392 | -8.90% |
| 5 | Tata Steel Ltd. | 13,92,024 | 12,90,214 | 3,30,112 | 30.20% |
| 6 | Tata Consumer Products Ltd. | 7,98,950 | 79,323 | 8,858 | 7.70% |
| 7 | Tata Power Company Ltd. | 7,16,715 | 1,11,079 | 32,508 | 33.80% |
| 8 | Trent Ltd. | 6,04,311 | 38,807 | 2,496 | 9.50% |
| 9 | The Indian Hotels Company Ltd. | 5,63,473 | 20,033 | -345 | -0.60% |
| 10 | Tata Elxsi Ltd. | 4,85,348 | 24,708 | 5,497 | 37.20% |
| 11 | Tata Communications Ltd. | 4,59,962 | 65,874 | 11,673 | 12.40% |
| 12 | Voltas Ltd. | 2,60,654 | 70,986 | 5,835 | 11.10% |
| 13 | Tata Chemicals Ltd. | 2,53,954 | 37,210 | 7,870 | 5.50% |
| 14 | Tata Teleservices (Maharashtra) Ltd. | 1,43,101 | 10,938 | -12,150 | 0.00% |
| 15 | Tejas Networks Ltd. | 1,28,787 | 5,491 | -637 | -4.80% |
| 16 | Tata Investment Corporation Ltd. | 1,23,807 | 2,532 | 2,014 | 1.20% |
| 17 | Tata Coffee Ltd. | 46,170 | 8,169 | 1,018 | 9.00% |
| 18 | Rallis India Ltd. | 37,853 | 26,039 | 1,643 | 10.00% |
| 19 | Tinplate Company Of India Ltd. | 34,891 | 42,495 | 3,529 | 35.00% |
| 20 | Tata Steel Long Products Ltd. | 30,641 | 68,016 | 6,299 | 21.70% |
| 21 | Tata Metaliks Ltd. | 25,194 | 27,455 | 2,381 | 16.90% |
| 22 | Nelco Ltd. | 17,078 | 1,432 | 102 | 12.70% |
| 23 | Oriental Hotels Ltd. | 16,424 | 2,187 | -134 | -5.20% |
| 24 | Automobile Corporation of Goa | 6,417 | 2,818 | 34 | 2.10% |
| 25 | Benares Hotels Ltd. | 5,762 | 498 | 57 | 7.50% |
| 26 | Automotive Stampings and Assemblies | 5,261 | 6,076 | 523 | 0.00% |
| 27 | Artson Engineering Ltd. | 2,879 | 1,726 | -50 | -1648.50% |
| 28 | TRF Ltd. | 1,894 | 1,271 | -203 | 0.00% |
| 29 | Tayo Rolls Ltd. | 819 | -35 | 0.00% | |
| 30 | Tata Technologies Ltd. | 17,308 | 2,185 | 26.40% |
At the beginning of the year 2000, the venerable conglomerate, which has a history spanning 155 years, recorded a total revenue of US$ 8.9 billio n (Rs 225 billion). However, through diversification and strategic investments, the combined revenue of all Tata companies surged to an impressive US$ 128 billion (Rs 10.5 trillion) for the financial year 2022.
Notably, Tata Consultancy Services (TCS) and Tata Steel contribute significantly to this total revenue. TCS, in particular, holds a dominant position with a market capitalization seven times larger than that of Titan, the second-largest company in terms of market capitalization.
Furthermore, unlike many other business houses in the country, the majority of the Tata group’s ventures are highly profitable and boast a strong balance sheet. This financial strength allows the group to make substantial investments in long-term growth projects and also enables it to weather extreme economic environments with resilience.
However, the legacy of the Tatas has always been marked by successfully pioneering new projects and ventures. In 1907, the visionary founders of the Tata Group, Jamsetji Tata and Dorabji Tata, established the Tata Iron and Steel Company, known as TISCO, which became India’s first iron and steel manufacturing plant.
Additionally, TELCO (now Tata Motors) is credited with introducing India’s first indigenously designed and manufactured car, the Tata Indica, as well as the Tata Safari, the country’s first SUV.
The conglomerate also played a crucial role in the founding of India’s first cosmetic brand, Lakme, although it was later sold to Hindustan Unilever.