Tata Group’s Market Cap Surpasses Entire Economy of Pakistan, Soaring to $365 Billion

Ratan Tata
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New Delhi, 19th February 2024: Tata Group has reportedly achieved a market value exceeding the entire economy of Pakistan, according to a recent report by The Economic Times. The group’s total market capitalisation is estimated at around $365 billion or over Rs 30 lakh crore, surpassing Pakistan’s GDP, valued by the IMF at approximately $341 billion.

The report emphasizes the remarkable performance of Tata Group’s listed companies over the past year, attributing the conglomerate’s heightened market value to the stellar returns provided by businesses ranging from salt to software. Notably, the crown jewel of Tata Group, IT major TCS, alone boasts a market capitalisation of nearly Rs 15 lakh crore or $170 billion, which is approximately half the size of Pakistan’s economic standing, troubled by debt and inflation.

While various Tata Group companies have contributed to the conglomerate’s market value surge, significant contributions have come from Tata Motors and Trent. Tata Motors shares witnessed a 110% surge in a year, while Trent experienced an impressive 200% gain. Other listed companies, such as Tata Technologies, TRF, Beneras Hotels, Tata Investment Corporation, Tata Motors, Automobile Corporation of Goa, and Artson Engineering, also performed well.

It’s important to note that Tata Group comprises at least 25 listed companies, with only Tata Chemicals experiencing a 5% decline in a year, as per ACE Equity data cited in the report. Additionally, the conglomerate boasts several unlisted companies, including Tata Sons, Tata Capital, Tata Play, Tata Advanced Systems, and Air India.

Considering the unlisted businesses, the total market capitalisation of Tata Group would likely see a substantial increase. For instance, Tata Capital, planning to launch its IPO next year, holds a valuation of approximately Rs 2.7 lakh crore on the unlisted market.

While Tata Group’s combined valuation positions it as a formidable conglomerate, it is noteworthy that the group is professionally managed, predominantly owned by philanthropic trusts, and lacks an individual promoter. Ratan Tata, the former chairman, holds less than a 1% stake in Tata Sons.

Contrastingly, Pakistan is grappling with a severe economic crisis, facing setbacks in FY23 and burdened with external debt and liabilities amounting to $125 billion. The country’s foreign exchange reserves of around $8 billion limit its ability to cover essential imports to just two months. The debt-to-GDP ratio has exceeded 70%, raising concerns about the sustainability of interest payments, which could consume half of the government’s revenues this year.

In contrast, India’s economy, at $3.7 trillion, is approximately 11 times larger than Pakistan’s, and it is projected to become the world’s third-largest economy by FY28, currently holding the position of the fifth-largest economy globally.