At $365 Billion, Tata Group's Market Cap Is Higher Than GDP of Pakistan

Tata Group Bigger Than Entire Pakistan Economy? Tata Group’s market capitalisation stood at $365 billion while IMF estimated Pakistan’s GDP to be almost $341 billion. This comes after several companies of the conglomerate gave massive returns in one year.

Valued at about Rs 15 lakh crore or $170 billion, Tata Consultancy Services (TCS) is not just India’s second-largest company but roughly half the size of Pakistan’s economy.

Pakistan Economy Staring At A Full-Scale Economic Crisis

Pakistan’s GDP recorded a growth of 6.1 per cent in FY22, 5.8 per cent in FY21 and estimated to have contracted in FY23. Floods caused heavy damage totalling billions of dollars in the country which is sitting on external debt and liabilities up to $125 billion as it tries to meet $25 billion of external debt payments starting July. Its $3 billion programme from the International Monetary Fund (IMF) is also ending in March while its foreign exchange reserves stand at $8 billion.

How Listed Tata Companies Are Performing?

Most of the recent gains in Tata Group’s market value came from multi bagger returns in Tata Motors and Trent, besides the healthy rally seen in Titan, TCS, and Tata Power in the last one year. At least 8 Tata companies, including the recently-listed Tata Technologies, have more than doubled wealth in the last one year – TRF, Trent, Benaras Hotels, Tata Investment Corporation, Tata Motors, Automobile Corporation of Goa, and Artson Engineering.

However, data from ACE Equity, shows that the only one having eroded wealth in the last 12 months is Tata Chemicals which is down 5 per cent in one year.

The Unlisted Chunk Of Tata Companies

If one was to take into consideration the estimated market value of unlisted Tata companies like Tata Sons, Tata Capital, Tata Play, Tata Advanced Systems and the airlines business (Air India and Vistara), among several others, the might of the Tatas can easily grow by another $160-170 billion if not more.

Upcoming IPOs

The group plans to list Tata Capital Financial Services, the holding company of the financial services business, by 2025. The company is commanding a market value of Rs 2.7 lakh crore in the unlisted market. This move aligns with the Reserve Bank of India’s (RBI’s) guidelines to list upper-layer NBFCs. Both Tata Capital Financial Services and its parent firm, Tata Sons Private Limited, were identified as NBFC “upper layer” by the RBI in September 2023. This designation necessitates a stringent disciplinary structure and mandatory listing within three years for both companies.

Tata Play already has Sebi’s nod for IPO but the timeline is yet to be announced.