Shares of Tata group firms including Tata Consultancy Services Ltd (TCS), Tata Power Company Ltd, Tata Steel Ltd, Tata Motors Ltd, Trent Ltd and Titan Company Ltd would be in focus on Thursday morning after the passing of Ratan Tata, 86, the chairman emeritus of Tata Sons.
It was Ratan Tata under whose leadership the Tata group pursued a globalisation drive with high-profile acquisitions such as Tetley, Corus, Jaguar Land Rover, Brunner Mond, General Chemical Industrial Products and Daewoo. He took over from JRD Tata as Chairman of Tata Sons and Chairman of the Tata trusts in March 1991. Tata Sons is the principal investment holding company and promoter of Tata companies. Sixty-six per cent of the equity share capital of Tata Sons is held by philanthropic trusts, which support education, health, livelihood generation and art and culture.
In December 2012, Ratan Tata stepped down as Chairman of Tata Sons after 50 years with the Tata group; and was honoured with the title of Chairman Emeritus of Tata Sons.
"Investors can pay tribute to Ratan Tata and the great corporate empire he built by buying stocks like TCS, Tata Motors, Tata Steel, Tata Consumer and Indian Hotels. Ratan Tata, while pursuing the group’s growth, contributed substantially to India’s growth and millions of ordinary investors gained from the great man’s vision," V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. Vijayakumar said stock investors may learn from the growth of the Tata empire that a long-term investment horizon is required to really participate in the wealth creation that happens through the capital market. "In a bull market like the present one, there will always be valuation concerns. But great companies like the ones Ratan Tata built will create wealth for investors in the long run," he said.
In 2023-24, the revenue of Tata companies, taken together, was more than $165 billion. These companies collectively employed over 10 lakh people. A total of 26 publicly listed Tata enterprises commanded a combined market capitalisation of more than $365 billion as on March 31, 2024.
Natarajan Chandrasekaran, the chairman of Tata Sons and Tata Group, in an overnight statement said: “It is with a profound sense of loss that we bid farewell to Mr. Ratan Naval Tata. His immeasurable contributions have shaped not only the Tata Group but also the very fabric of our nation.”
Ratan Tata had earlier dismissed concerns about his health, assuring the public that his hospital stay was for routine age-related checks. But his sudden passing has left a void in the Indian business landscape that few can fill.
Tata group stocks have performed well in 2024 so far, with 16 shares delivering double digit returns year-to-date. Trent has rallied 168 per cent. It has been followed by TRF, Voltas, Automobile Corporation of Goa Ltd, The Indian Hotels Company Ltd, Tata Investment Corporation Ltd, which have rallied anywhere between 50 per cent and 90 per cent during the same period. Titan Company Ltd, Benares Hotels Ltd, Tata Technologies Ltd, Tata Elxsi Ltd and Tata Teleservices (Maharashtra) Ltd are five group stocks that have delivered negative returns of 5-13 per cent in 2024 so far.