Tata Group’s Market Cap Hits $365 Billion, Surpassing Entire Economy of Pakistan
Pakistan's GDP is being estimated at approximately $341 billion by the International Monetary Fund (IMF)
The Tata Group, a conglomerate spanning industries from salt to software, has achieved remarkable growth in the market value of its listed companies. This growth has led to the combined market capitalization of Tata Group companies surpassing the entire gross domestic product (GDP) of Pakistan, a nation grappling with significant economic challenges. Pakistan’s GDP, estimated at approximately $341 billion by the International Monetary Fund (IMF), now stands overshadowed by the market capitalization of Tata Group’s listed companies, which amounts to around $365 billion or more than Rs 30 trillion.
Among the companies within the Tata Group, TCS (Tata Consultancy Services) stands out as a significant contributor to the conglomerate’s market value. With a market value of almost Rs 15 trillion ($170 billion), TCS alone holds a substantial portion of the Tata Group’s total worth. Additionally, companies like Tata Motors and Trent have experienced notable growth in their stock prices. Tata Motors’ shares rose by 110% in a year, while Trent saw a staggering increase of 200%. Other companies within the conglomerate, such as Tata Technologies, TRF, Benaras Hotels, Tata Investment Corporation, Tata Motors, Automobile Corporation of Goa, and Artson Engineering, have also performed well in the stock market.
The majority of Tata Group’s listed companies have contributed positively to the conglomerate’s overall market value growth. Notably, only one listed company, Tata Chemicals, experienced a decline in its stock price, dropping by five percent over the course of a year. In addition to the listed companies, the Tata Group includes various unlisted businesses such as Tata Sons, Tata Capital, Tata Play, Tata Advanced Systems, and Air India. Considering these unlisted entities, the total market capitalization of the Tata Group would likely see a significant increase. For instance, Tata Capital, which plans to launch its Initial Public Offering (IPO) next year, holds an unlisted market valuation of over Rs 2.7 trillion.
Pakistan is currently facing its most severe economic crisis in history. The country’s challenges include a substantial external debt of $125 billion and upcoming external debt payments totaling $25 billion, beginning in July. With foreign exchange reserves of only $8 billion, Pakistan’s ability to cover essential imports is limited to just two months. Additionally, Pakistan’s debt-to-GDP ratio has exceeded 70%, leading credit rating agencies to express concerns about the sustainability of interest payments, which are expected to consume half of the government’s revenue this year.
In comparison to Pakistan’s economic struggles, India’s GDP stands at $3.7 trillion, making it about 11 times larger than Pakistan’s. India is poised to become the world’s third-largest economy by FY28, currently holding the position of the world’s fifth-largest economy. This stark contrast underscores the significant economic disparities between the two neighboring countries.
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