Tata Group's Market Value Surpasses Pakistan's Economy: Report (Image: Tata)
The Tata Group has hit a remarkable milestone as the combined market value of its listed companies soared past Pakistan’s gross domestic product (GDP). Known for its diverse portfolio of spanning from salt to software, the conglomerate witnessed stellar returns in the stock market over the past year, propelling its total market capitalization to over $365 billion or over 30 lakh crores.
Leading this surge is Tata Consultancy Services (TCS), the IT giant and the crown jewel of the Tata Group, boasting a market capitalisation of nearly 15 lakh crore or $170 billion. Notably, TCS alone accounts for half the size of Pakistan”s struggling economy, characterized by high levels of debt and inflation.
The impressive performance of Tata Group companies extends beyond TCS, with notable gains in Tata Motors and Trent. Tata Motors witnessed a surge of 110 percent while Trent recorded a 200 percent increase in its share price over the past year, cementing Tata Group as a formidable force in the global market landscape.
Despite having 25 listed companies, Tata Chemicals remains the only entity in the conglomerate experiencing a slight downturn, with a 5 percent plummet in its share price. However, the conglomerate”s strength lies in its listed entities and unlisted firms, including Tata Sons, Tata Capital, and Tata Advanced Systems, among others. These unlisted companies contribute significantly to the group”s overall valuation, with Tata Capital alone commanding a valuation of approximately 2.7 lakh crore.
Notably, Tata Group is characterized by professional management and philanthropic ownership, with Ratan Tata owning less than 1 percent stake in Tata Sons. This distinguishes it from traditional conglomerates with individual promoters.
In stark contrast, Pakistan is undergoing its worst economic crisis in history, marked by rising external debt, diminishing foreign exchange reserves, and mounting financial pressures. With a debt-to-GDP ratio exceeding 70 percent, Pakistan faces challenges in meeting essential expenses and servicing its debts.
