As the world mourns the saddening demise of Ratan Tata, the Chairman Emeritus of Tata Sons left behind a strong legacy of business and wealth creation in the country. Interestingly, NSE's benchmark index, Nifty50, which includes the top fifty companies of India, hosts as many as six companies as its constituents.
Ratan Tata, who passed away on October 9, took over from JRD Tata as Chairman of Tata Sons in March 1991 and stepped down from his post in December 2012 after a 50 year old reign in the company. Tata Sons is the principal investment holding company and promoter of Tata companies.
Currently as many as six companies- Tata Consultancy Services, Tata Steel, Tata Motors, Titan Company, Tata Consumer Products and Trent- are part of Nifty50 index. The half a dozen companies from the Tata Group cumulatively hold a 10 per cent weightage on index and have a combined market capitalization close to Rs 28 lakh crore.
Tata Consultancy Services (TCS), the biggest IT player in the country and second largest Indian company in terms of market capitalization at Rs 15.45 lakh crore, has been among the biggest wealth creators of the country. The company was listed in 2004, making it the second last IPO by the Tata Group, prior to Tata Technologies.
TCS, the IT behemoth, which is consistent in announcing dividends has gained more than 115 per cent in the last five year, while it has gained nearly 12 per cent in the year 2024. The software solutions player is also among the largest contributors to Indian exports. Antique Stock Broking has a 'hold' rating on TCS with a target price of Rs 4,450, while Sharekhan gives it a 'buy' tag for Rs 5,230.
The company is set to announce its Q2 earnings later today. Sagar Shetty, Research Analyst, StoxBox expects TCS to report moderate revenue growth in Q2FY25, impacted by muted performance in India with incremental weakness in retail and CPG growth. The revenue growth is likely to be based on the BSNL deal and the pickup of US BFSI services.
Tata Motors Ltd, the home grown automajor has zoomed nearly 700 per cent in the last five years. Ratan Tata has been a key driver for Tata Motors as he started his career in Tata Group from this entity only. Later on, Ratan Tata launched his dream projects like India's first 100 per cent indigenous car 'Indica' and India's most affordable car 'Nano' in the last few years.
Tata Motors, which has zoomed nearly 12 times in the last two decades, currently commands a total market capitalization of more than Rs 3.45 lakh crore. Emkay Global Financial Services has a 'buy' rating on Tata Motors with a target price of Rs 1,175, while Motilal Oswal Financial Services has given a target price of Rs 990 on the stock with a 'neutral' rating.
Tata Steel, formerly known as Tisco, has surged close to 350 per cent in the last five years, currently commanding a total market capitalization close to Rs 2 lakh crore. Ratan Tata moved to this company in 1965 as technical officer. The stock has zoomed nearly 10 times in the last 20 years.
Titan Company is another gem from the Tata Group, which has been a consistent performer for the investors. The Jhunjhunwala backed company has zoomed a stellar 700 times in the 20 years, while the stock is up 180 per cent in the last 5 year period. The current market capitalization of Titan stands close to Rs 3 lakh crore.
Elara Capital has an 'accumulate' rating on Tata Steel with a target price of Rs 171, while Antique Stock Broking has a target price of Rs 4,485 Titan with a 'buy' tag. Morgan Stanley recently upgraded the Tata Steel to 'equalweight' with a revised target price of Rs 175 and maintained the same rating on Titan with a target price of Rs 3,570.
Tata Consumer Products and Trent, the latest entry in the Nifty50 index, are the remaining two blue-chips from the Tata Group. The FMCG player has zoomed 310 per cent in the five year period, while it has delivered nearly 5,000 per cent return since 2004, which currently commands a total market capitalization of 1.1 lakh crore.
On the other hand, Trent has been the best performer in the last five year period, rallying nearly 15 times or 1,500 per cent, while the retail major has gained 27,000 per cent in the last 20 year period. The current valuation of the company is around Rs 2.9 lakh crore.
Recently, Citi initiated its coverage on Trent with a 'buy' rating and a target price of Rs 9,250, while Motilal Oswal also has a 'buy' rating on the stock. Kotak has a 'reduce' rating on the counter with fair value of Rs 3,175. On the other hand, Nirmal Bang and Nuvama Institutional Equities have 'buy' ratings on Tata Consumer with target prices of Rs 1,395 and Rs 1,390, respectively.