The gap between Tata Group and other Indian conglomerates just got wider as the market capitalisation of the 155-year-old Indian conglomerate crossed the Rs 30 lakh crore mark for the first time following a sharp rally in shares of TCS and Tata Motors.

IT bellwether TCS ended 4% higher on Tuesday as its market value crossed the Rs 15 lakh crore milestone for the first time. Both Tata Motors as well as Tata Steel are near their 52-week peaks, while another Nifty stock Titan is up 23% in 6 months.

Seven stocks in the Tata family are worth more than Rs 1 lakh crore – TCS, Titan, Tata Motors, Tata Steel, Tata Power, Trent, and Tata Consumer. Most stocks that are part of the salt-to-software conglomerate have been on an upswing with the N Chandrasekaran-led group being seen as ticking all the right boxes from corporate governance standards to business strategies in a booming economy.

The success of the professionally-managed group, which is largely owned by philanthropic trusts and doesn’t have an individual promoter, defies investor obsession with larger-than-life billionaire founders or their kin.

Company Name Market Cap (Rs lakh crore)
TCS 15.12
Titan 3.16
Tata Motors 3.12
Tata Steel 1.79
Tata Power Company 1.25

In conglomerate terms, billionaire Mukesh Ambani-led Reliance Industries Group comes second in the order with the market capitalisation of all companies falling under his control coming to about Rs 21.3 lakh crore. RIL’s market value is the largest at Rs 19.3 lakh crore, followed by Jio Financial Services’ Rs 1.72 lakh crore.

Other listed companies part of the Ambani family include Network 18 Media, Just Dial, Hathway Cable, Den Networks, RIIL, and Hathway Bhawani Cabletel.

On the other hand, the top 5 stocks in Tata Group are alone worth about Rs 24.45 lakh crore.

Other big stocks in the Tata portfolio include Indian Hotels, Tata Communications, Tata Elxsi, Voltas, Tata Investment Corporation, Tata Chemicals, Rallis, Nelco, and the newly-listed Tata Technologies.

Dalal Street’s love and respect for Tata stocks was evident in the record-breaking response that Tata Technologies IPO got last year. The Rs 3,042-crore IPO had received bids worth over Rs 1.5 lakh crore and was listed at a jaw-dropping premium of 140%.

The way Tata stocks have given multibagger returns in the recent past explains why the late ‘Big Bull’ Rakesh Jhunjhunwala never shied away from publicly expressing his fascination for the Tatas.

In one of his TV interviews, the ‘Big Bull’ had described Tatas as being blessed by God and that buying Tata stocks wasn’t planned that way.

“It is a coincidence. I buy shares of companies…But, ever since Mr Chandra (Tata Group Chairperson N Chandrasekaran) took over and I understood him and what he’s trying to do, I got extremely bullish,” Jhunjhunwala had said.

Even after his death, nearly half of the family portfolio worth about Rs 50,000 crore is concentrated in Tata stocks.

Titan, which runs the Tanishq jewellery chain and retails other lifestyle luxury products, is the single biggest holding of the Jhunjhunwala family with a 5.4% stake valued at around Rs 17,000 crore. Other favs include Tata Motors, Indian Hotels, and Tata Communications.

(Data: Ritesh Presswala)

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