The combined market value of companies within India’s Tata Group has exceeded the Gross Domestic Product (GDP) of Pakistan, according to a report from an Indian media outlet.
The conglomerate’s listed companies have demonstrated impressive stock market returns over the past year, resulting in a total market capitalization of approximately $365 billion or more than Rs30 trillion. This surpasses Pakistan’s estimated GDP of around $341 billion, as reported by the International Monetary Fund (IMF). Notably, Tata Group’s flagship company, IT major TCS, alone holds a market value of nearly Rs15 trillion ($170 billion), equivalent to half of Pakistan’s economically challenged and debt-laden economy.
Various Tata Group firms have contributed to the overall market value growth, with Tata Motors and Trent making significant contributions. Tata Motors’ shares have surged by 110 percent, while Trent has seen an impressive gain of 200 percent in the past year. Other well-performing stocks within the conglomerate include Tata Technologies, TRF, Benaras Hotels, Tata Investment Corporation, Tata Motors, Automobile Corporation of Goa, and Artson Engineering. Remarkably, out of the 25 Tata Group companies listed on stock exchanges, only one, Tata Chemicals, has experienced a modest decline of five percent over the year, as per ACE Equity data cited in the report.
It’s worth noting that the Tata Group encompasses both listed and unlisted companies, including Tata Sons, Tata Capital, Tata Play, Tata Advanced Systems, and Air India. Considering these businesses, the conglomerate’s total market capitalization would witness a substantial increase. For instance, Tata Capital, which is reportedly planning its Initial Public Offering (IPO) next year, holds an unlisted market valuation of over Rs2.7 trillion.
The report highlights Pakistan’s ongoing severe economic crisis, characterized as the worst in its history, following setbacks in the fiscal year 2023. The country faces significant challenges with $125 billion in external debt and liabilities, putting it under pressure to secure funds for upcoming external debt payments totaling $25 billion starting in July.
