Why TATA Group stocks are going up?

2 min read
Stocks of Tata Group are on an upward trajectory especially post Q4FY21 Results. Is there anything special about the business besides the Financial Performance? Let’s find it out in this blog.

Introduction

Mr. Natarajan Chandrasekaran is about to complete 4 years after being the chairman of TATA Group on 30 May 2021. We have seen TATA Group completely changing during this period. This was in news as well that last year the top management has taken a 20% cut in their salary and recently they are given hikes. Earlier Mr. Natarajan Chandrasekaran was leading only TCS and at that time it was contributing almost 90% to the total profits of TATA Group.

We will discuss 3 points that Mr. Chandrasekaran implemented that completely changed the working of TATA Group Businesses.

1. Identifying new business opportunities: 

  • He has started identifying new business opportunities in the field of e-commerce, electronics, electric mobility, payments things, medical, etc.
  • We have also seen the news of the acquisition of Big Basket or the news of 1mg.
  • This shows his focus on expanding its e-commerce reach.
  • They are also launching a super app that acts as an umbrella for various services offered by TATA Group to the customers. Ex- Titan, Voltas, Trent, etc.

2. Modernisation of old businesses:

  • We can also see that he implemented the modernization in the working of old businesses just like the TATA Steel has reduced its dependency from Europe region which was 1/3rd from India and 2/3rd from Europe and now it has completely reversed.
  • He is also trying to change the old TATA Power business into renewable energy.
  • They are also now focusing on the electric vehicle segment which is appreciated by the market.

3. Resolution of old problems:

  • Earlier there was no synergy between the various companies of TATA Group as there were too many businesses going on and debt was also increasing.
  • Seeing this, he has given the vision of developing into a Zero-Debt Company, whether it is for Tata Motors, Tata Steel, or any Tata Group Company.
  • And the market is rewarding them because they are in the direction of achieving all these objectives for almost all the companies.

Conclusion:

The Tata Group and its Companies are performing quite impressively under the leadership of Mr. N. Chandrasekaran. He is tick-marking all the boxes available whether it is Finding the Right Person for the head positions of their businesses just like in the case of Tata Consumer, Tata Digital, etc., gaining market share, the growing presence of the Tata Group Businesses, and many more.

The efforts of Tata Group and the Top Management present the view of the action plans of the vision set by the company.

Various Stocks of Tata Group can be a good pick for long-term investing, but one needs to do proper research and study before investing in any of them or should consult a financial advisor.

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