The combined market capitalisation of all Tata stocks (excluding Tata Tech) rose by Rs 9.15 lakh crore to Rs 29.62 lakh crore. This turns out into a profit of nearly 45%.
On an average, Tata stocks gave a mindblowing return of 85% during the financial year. Retail investors ignored institutional investors who have been valuing holding companies at a discount to the underlying value of their holdings.
Despite being a holding company, Tata Investment Corporation was the top gainer in the pack and ended 257% higher. On the other end was Tata Chemicals which ended 11% up.
Other top winners include Automobile Corporation of Goa, Trent, Benares Hotels, TRF, Tata Motors, Artson Engineering and Tata Power.
The strong recovery in the earnings performance of Tata Motors’ India operations as well as Jaguar Land Rover, drove the stock 136% higher in FY24.Tata Power’s market cap increased by over 107% to Rs 1.26 lakh crore. Shares of Tata Technologies, which listed in November last year, are still trading at a 100% premium to its IPO issue price.
Titan shares ended the year 51% higher, Tata Steel 49%, Tata Consumer 54% and TCS 21%.
Out of the total market cap of the Tata Group’s listed entities, half of the value is embedded in TCS alone.
Also read | EV car race: Will it be a Tesla vs Tata Motors battle on Indian roads?
The way Tata stocks have given multibagger returns in the recent past explains why the late ‘Big Bull’ Rakesh Jhunjhunwala never shied away from publicly expressing his fascination for the Tatas.
In one of his TV interviews, the ‘Big Bull’ had described Tatas as being blessed by God and that buying Tata stocks wasn’t planned that way.
“It is a coincidence. I buy shares of companies…But, ever since Mr Chandra (Tata Group Chairperson N Chandrasekaran) took over and I understood him and what he’s trying to do, I got extremely bullish,” Jhunjhunwala had said.
Earlier in the week, ET reported that the salt-to-software conglomerate is planning IPOs of Tata Capital, Tata Autocomp Systems, Tata Passenger Electric Mobility, BigBasket, Tata Digital, Tata Electronics, Tata Housing and Tata Batteries in the next 2-3 years.
(Data: Ritesh Presswala)
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