Tata Group m-cap climbs over 120% since March 2020; top gainer rallies nearly 2,000% return

Tata Group have generated humungous wealth for investors amid the bull run on Dala Street since March 2020 lows. Data shows that market capitalisation of companies in the Nifty Tata Group index have surged by 123% to Rs 20.88 lakh crore on August 18 from Rs 9.34 lakh crore on March 24.

Market watchers believe that the group’s focus on debt reduction and improvement in margin were the key drivers. As a result, at least 20 group companies have more than doubled investors wealth in just 17 months.

Expert view

“The group focus on the deleveraging balance sheet, asset-light business model, restructuring and objective to raise margin since the to appoint of N Chandrasekaran have been working in favour of the group,” said AK Prabhakar, Head of Research, IDBI Capital Markets.

With a rally of 1973%, Tata Teleservices (Maharashtra) emerged as the top gainer in the list. Share of the company jumped to Rs 39.40 on August 13 from just Rs 1.90 on March 24, 2020. This means, Rs 10,000 invested in this stock in March last year has now turned into over Rs 2 lakh at present.

Other group stocks in the list include Tata Elxis, which rallied 684%. It was followed by Tata Communications (up 521%), Tata Steel Long Products (up 477%), Automotive Stampings and Assemblies (up 376%), Tata Motors (up 347%), Tata Chemicals (up 337%), Tata Coffee (up 316%), Tinplate Company (up 315%) and Nelco (up 308%).

Overall, the Tata group of companies, which are part of the Nifty Tata Group index, posted 18% year-on-year (YoY) growth in net sales at around Rs 1.94 lakh crore for the quarter ended June 30. Net profit increased by 139% YoY to Rs 14,770 crore. On the top, Tata Steel recently posted a consolidated net profit of Rs 9,768.34 crore for June quarter 2021-22. In the year-ago period, the company incurred a net loss of Rs 4,648.13 crore. Total income climbed to Rs 53,534.04 crore during the quarter under review from Rs 25,662.43 crore a year ago.