Tata Group, one of India’s largest conglomerates, has achieved a significant milestone as its market capitalization surpasses the entire economy of Pakistan. According to IMF estimates, with a market capitalization of $365 billion, Tata Group’s valuation now exceeds Pakistan’s estimated GDP, which stands at approximately $341 billion.
This remarkable feat underscores the robust performance of Tata companies across various sectors, contributing to the conglomerate’s impressive market value.
How Tata Group Overtakook Pakistan’s GDP
In particular, the stellar performances of several Tata companies, including Tata Motors, Trent, Titan, TCS, and Tata Power, have driven the surge in Tata Group’s market capitalization over the past year. Notably, at least eight Tata companies have witnessed significant wealth creation, with returns more than doubling in the last twelve months. These companies include TRF, Benaras Hotels, Tata Investment Corporation, Automobile Corporation of Goa, and Artson Engineering.
However, amidst Tata Group’s remarkable growth, data from ACE Equity reveals that Tata Chemicals is the only company within the conglomerate to have experienced a decline in wealth, down by 5 percent over the past year.
Tata Group’s Unlisted Giants and Upcoming IPOs
The unlisted segment of Tata companies, such as Tata Sons, Tata Capital, Tata Play, and Tata Advanced Systems, further enhances the conglomerate’s strength. The estimated market value of these unlisted entities could potentially increase Tata Group’s valuation by an additional $160-170 billion. Notably, Tata Capital Financial Services, the financial services business holding company, is set to be listed by 2025 in alignment with RBI guidelines.
Also read – 5 Tata Group IPOs Set To Be Launched in 2024
Moreover, Tata Play, which has received approval from SEBI for its IPO, is poised for further growth, awaiting the announcement of its timeline. These strategic moves underscore Tata Group’s commitment to enhancing its market presence and financial standing in the future.
Pakistan’s Economy in Deep Mess
In contrast, Pakistan’s economy faces significant challenges, including a growth rate of 6.1% in FY22, followed by an estimated contraction in FY23 due to various factors, including floods and external debt obligations. As Pakistan grapples with economic difficulties, Tata Group’s remarkable performance highlights its resilience and potential for further growth in the global market landscape.
Tata Group’s achievement of surpassing Pakistan’s GDP in market capitalization reflects its strong performance and strategic initiatives across diverse sectors. With a focus on innovation, expansion, and financial discipline, Tata Group continues to solidify its position as a leading conglomerate on the global stage.
