Tata’s market cap surpasses Pakistan’s GDP: report

NEW DELHI: The combined market value of Indian Tata Group companies has surpassed Pakistan’s gross domestic product (GDP), a report by an Indian media outlet said.

According to the report, the listed companies of the salt-to-software conglomerate have produced fantastic returns on the stock market in one year, and their combined value is now more than Pakistan’s entire economy, which is still struggling with high levels of debt and inflation.

The Tata Group’s overall market capitalisation is around $365 billion, or more than Rs30 trillion. This is more than Pakistan’s GDP, which the International Monetary Fund (IMF) estimates to be roughly $341 billion. The IT major TCS is the crown jewel of the Tata Group’s listed businesses, with a market value of almost Rs15 trillion ($170 billion). According to IMF estimates, TCS alone is half the size of Pakistan’s cash-strapped, debt-ridden economy.

While all Tata Group firms have contributed to the conglomerate’s overall market value growth, Tata Motors and Trent have made the most significant contributions.

Tata Motors’ shares have risen 110 percent in a year, while Trent has gained a whopping 200 percent. In addition, stocks like Tata Technologies, TRF, Benaras Hotels, Tata Investment Corporation, Tata Motors, Automobile Corporation of Goa, and Artson Engineering have performed well.

It is also worth mentioning that the Tata Group has at least 25 companies listed on stock exchanges, and just one of them, Tata Chemicals, has fallen five percent in a year, according to ACE Equity data cited in the report.

The Tata Group also includes various unlisted companies, such as Tata Sons, Tata Capital, Tata Play, Tata Advanced Systems, and Air India.

If these businesses are considered, then Tata Group’s total market capitalisation would see a substantial rise.. To provide some context, Tata Capital, which is allegedly planning its IPO next year, has an unlisted market valuation of over Rs2.7 trillion.

According to the report, Pakistan has been experiencing its worst economic crisis in history following a series of setbacks in FY23. The country, which has $125 billion in external debt and liabilities, is under pressure to secure funds for upcoming external debt payments of $25 billion beginning in July.