A least a dozen Tata group stocks delivered over 20 times returns in the past two decades, with Titan Company Ltd, Trent Ltd, Voltas Ltd and Tata Elxsi Ltd delivering a whopping 116-509 times returns during the same period. As the legendary industrialist Ratan Tata passed away, analysts on Dalal Street credited his 50-year long fruitful career at the Tata group as key differentiator that helped the salt-to-software conglomerate achieve $365 billion in market value by the end of March 31, 2024, and made shareholders and investors richer.
His globalisation drive that made the group acquire a string of high-profile Tata acquisitions including that Tetley, Corus, Jaguar Land Rover, Brunner Mond, General Chemical Industrial Products and Daewoo; and his decisions such as launching a Rs 1-lakh car Tata Nano in India, were unheard of in his era.
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, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Vijayakumar said investors can 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 the last 20 years, since the TCS listing, a Rs 6.86 apiece stock Titan Company Ltd has climbed to Rs 3,494.05 level, a mind-blowing 50,834 per cent or 509.33 times return. It also helped late investor Rakesh Jhunjhunwala become multi-billionaire. Rekha, Jhunjhunwala's wife, still owns Rs 16,651 crore worth Titan shares.
Jhunjhunwala himself was in awe of Ratan Tata. In a 2018 interview to ET NOW, he said people who established the House of Tatas, Sir Ratan Tata and Sir Jamsetji Tata, gave away all their wealth to charity.
“Do you know every child with cancer that comes to Bombay is examined by them? If Tata Cancer Hospital in Bombay feels it can cure the disease, it gives free treatment. The Indian Cancer Society gives medicines. Who set up India’s first steel plant, first five start hotel, first power plant, first software company, first car manufacturing company? Who set up Indian Institute of Sciences? Who set up them? It’s the Tatas, he told ET NOW.
More recently, the Tata group acquired Air India for $2.4 billion or Rs 18,000 crore. “They are creating wealth for the good of society. What greater noble aim can a human have? So, they are my role model in life,” Jhunjhunwala said in 2018.
Trent Ltd, a Tata retailer, delivered 27,888 or 279.87 times return in the past 20 years. White goods maker Voltas Ltd made 136 times return, while IT major Tata Elxsi also delivered 115.97 times return in the past 20 years.
Ratan Tata 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.
Artson Engineering Ltd, Rallis India Ltd, Tata Investment Corporation Ltd, Benares Hotels Ltd and Tata Consultancy Services Ltd delivered 28-91 times returns in the past two decades. Nelco Ltd, Automobile Corporation of Goa Ltd, Tata Consumer Products Ltd, The Indian Hotels Company Ltd, Tata Power Company Ltd, Automotive Stampings and Assemblies Ltd, TRF Ltd, Oriental Hotels Ltd, Tata Motors Ltd and Tata Communications Ltd are a few other Tata group stocks delivering 10-20 per cent returns in two decades.
Apart from listed stocks, Tata also invested in start ups such as Upstox, Lenskart, FirstCry, Snapdeal, Moglix and Paytm Mall, among others.