Tata becomes first Indian conglomerate to cross Rs. 30T m-cap
The Tata Group has reached an impressive milestone, becoming the first Indian business conglomerate to achieve a combined market capitalization of over Rs. 30 lakh crore. This remarkable growth in shareholder wealth is primarily due to increased interest in shares of Tata Consultancy Services (TCS), Tata Motors, Tata Power, and Indian Hotels this year.
TCS is up over 9% in 2024
TCS has seen a surge of over 9% in 2024, with its market cap crossing Rs. 15 lakh crore in today's trading session. This growth is credited to deal wins in Q3 FY24, including a total contract value of $8.1 billion, a 3.8% increase YoY. Recently, TCS also revealed a 15-year partnership expansion with UK insurance giant Aviva to transform their 'UK Life' business. Although the deal size remains undisclosed, insiders believe it's a mega deal, likely exceeding $500 million.
Tata Motors stock surges on strong earnings and robust demand
Tata Motors has experienced a 20% increase this year, fueled by robust earnings and factors such as the easing semiconductor chip shortage, reduced raw material costs, and strong demand. The company reported an impressive 27% YoY volume growth and a significant 22% YoY revenue growth, with the Jaguar Land Rover (JLR) division posting an outstanding 16.2% EBITDA margin. The management remains optimistic about sustained demand in the Indian market, driven by economic recovery and government focus on infrastructure development.
Tata Power, Indian Hotels gain amidst government initiatives
Tata Power has seen an 18% jump in 2024, in line with trends in the power and energy sector. Additional momentum is expected due to the government's increased focus on renewable energy expansion. As a leading private sector player, Tata Power boasts a clean energy portfolio of 5,500 MW, encompassing solar, wind, and hydropower. Indian Hotels has gained 16% in 2024, propelled by demand and a positive future outlook from management, leading analysts to predict a robust earnings trajectory.
