Tata Sons’ current Market Value
Tata Group and it’s subsidiaries
Tata Group is an Indian multinational conglomerate holding company headquartered in Mumbai, Maharashtra, India. It was founded in 1868 by Jamsetji Tata. The company gained international recognition after purchasing several global companies. One of India’s largest conglomerates, Tata Group is owned by Tata Sons.
Tata Sons is the holding company of the Tata Group and holds the bulk of shareholding in the Tata group of companies including their land holdings across India, tea estates and steel plants. Tata Group is a very solid group and Tata Sons is the holding company of the group. Tata Group has a noticeable presence in almost all sectors. The profits or the dividends that Tata Sons receive is majorly used for CSR activities or for the betterment of the society.
TATA Group list of subsidiaries
Below is the list of listed companies that are owned by Tata Sons and have major stake in. Tata Sons also has stake in many other unlisted companies such as Tata Capital or Air Asia.
- Indian Hotels Co Ltd (Taj)
- Tata Chemicals Ltd
- Tata Communications Ltd
- Tata Consultancy Services (TCS) Ltd
- Tata Elxsi Ltd
- Tata Global Beverages Ltd
- Tata Investment Corp. Ltd
- Tata Motors Ltd
- Tata Power Co. Ltd
- Tata Steel Ltd
- Titan Co. Ltd
- Trent Ltd (Westside)
- Voltas Ltd
Let’s have look at the listed subsidiaries of Tata Group and the group’s stake in those subsidiaries.
Brief about Tata’s major subsidiaries
- Their chemical business, Tata Chemicals recently saw a surge in their share price. This was because of the Blue Skies Initiative started by China. The chemical companies in China were creating a lot of pollution. Under this initiative many restrictions have been put on the chemical companies there. As a result, the chemical companies in India have experienced an increased demand.
- The IT Business, TCS is the biggest jewel to the Tata Group. TCS is also the highest profit-making company for Tata Group. Mr. Natarajan Chandrasekaran was the chairman of TCS and now he has also been as the chairman of Tata Sons as his performance has been incredible and is a big asset to Tata Group.
- The Tata Elxsi is an Indian design company. It provides design and technology services for product engineering and solutions across industries including broadcast, communications, and automotive.
- Tata Investment Corp. is a holding company. Holding companies always run at discounted prices. So, the real market value of Tata Investment Corp might be around Rs. 6,000 Cr.
- The automobile business, Tata Motors and Tata Motors DVR jointly have 30.9% stake of Tata Group in them. The value of Tata Group stake in Tata Motors used be much high but it has come down owing to the severe corrections that have been made in the stock of Tata Motors.
- Power is a challenging one and is facing some debts. The sector is a capital-intensive sector and it requires high investments. The sector is a little sluggish and the growth rate will also be average.
- On the website of Titan, the promoter holding is been shown as around 52%. From that 25% is owned by Tata Group and the rest 27% holding is of Tamil Nadu Industrial Development Corporation (TIDC) [for example, in Maharashtra it is MIDC]. Titan is another gem in Tata Group.
- The total stake of Tata Sons in listed Tata Group companies is of Rs. 6.22 Lakh Cr. This come to between $87 to $90 billion.
This does not include the stake in unlisted companies, real estate holdings, etc. If you include those too, then the valuation of Tata Group is close to $120 to $130 billion.
- Tata Group is an excellent Group from corporate governance perspective
- The USD3.1 billion pound loss booked by Tata Motors in their Q3FY18-19 because of the failed JLR investments in China was a very bold move. And this move can be very easily taken if you have such a strong group behind you.
- The business operations of Tata Group are very healthy.
- Appointing Mr. Natarajan Chandrasekaran as the new chairman of Tata Sons will prove to be the right decision as he has been managing TCS very successfully for a long period.
- The numbers that are used are approximate and have been rounded for presentation purposes.
- We are also not suggesting anyone to immediately go and buy these stocks or invest in the stock markets.
- Only an analysis has been presented here.