Tata Group¡¯s Rs 30 Lakh Crore Market Cap Is Now Bigger Than Pakistan's Entire Economy

The aggregate market capitalization of Tata Group enterprises has exceeded the Gross Domestic Product (GDP) of Pakistan, as per The Economic Times.

The report emphasized the exceptional returns provided by the publicly listed companies within the diverse Tata Group, noting that their collective value has now surpassed the entire economic output of Pakistan. This development comes at a time when Pakistan is grappling with substantial levels of debt and inflationary challenges.

As per the report, Tata Group's combined market capitalization is roughly $365 billion (approximately Rs 30 lakh crore), exceeding the estimated Gross Domestic Product (GDP) of Pakistan, which the IMF places at around $341 billion.(Rs 28 lakh crore approx)

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TCS Is Tata¡¯s winning horse and is half the size of cash-strapped Pakistan

Among all the publicly listed businesses of Tata Group, the Information Technology giant TCS stands out as its flagship, boasting a market capitalization of nearly Rs 15 lakh crore or $170 billion. According to IMF calculations, TCS alone is approximately half the size of Pakistan's economically challenged and debt-laden economy.

Biggest contributors of the conglomerate¡¯s total market value is Tata Motors and Trent

While the entirety of Tata Group companies has played a role in the notable increase in the conglomerate's overall market worth, the most substantial contributions have been attributed to significant returns from Tata Motors and Trent, both yielding multibagger returns.

Tata Motors shares have experienced a remarkable surge of 110% within the span of a year, while Trent has witnessed an impressive gain of 200%. This noteworthy performance is complemented by the positive trajectory of stocks in other Tata Group companies, including Tata Technologies, TRF, Beneras Hotels, Tata Investment Corporation, Tata Motors, Automobile Corporation of Goa, and Artson Engineering.

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At Least 25 companies of Tata group have been listed on the stock exchanges

It is noteworthy that the Tata Group boasts a presence of at least 25 companies listed on the stock exchanges. As per ACE Equity data cited in the ET report, out of these, only one, Tata Chemicals, has seen a decline of 5% over the course of a year.

Unlisted companies under the Tata Group include Tata Sons, Tata Capital, Tata Play, Tata Advanced Systems and Air India.

Tata Group Isn¡¯t Run By One Person But Philanthropic Trusts

It is important to highlight that the Tata Group is professionally managed, predominantly owned by philanthropic trusts, and lacks an individual promoter. It's worth noting that Ratan Tata holds less than a 1% stake in Tata Sons.

Economic Crisis Of Pakistan

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Pakistan is currently facing its most severe economic crisis in history, marked by setbacks in FY23. The country is struggling with a substantial external debt of $125 billion, and there is pressure to secure $25 billion for upcoming external debt payments from July. With a $3 billion IMF program expiring soon and foreign exchange reserves around $8 billion, Pakistan's ability to cover essential imports is limited to two months. The debt-to-GDP ratio has exceeded 70%, raising concerns about interest payment sustainability. In contrast, India's $3.7 trillion economy is 11 times larger than Pakistan's, positioning it to become the third-largest global economy by FY28, currently ranking as the fifth-largest.

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