In a stunning development, the combined market value of India’s Tata Group companies has surpassed Pakistan’s gross domestic product (GDP). This news is a testament to the Indian conglomerate’s impressive performance over the past year with its listed companies producing fantastic returns on the stock market.
Trent, Tata Motors join TCS growth!
The Tata Group’s market capitalization is now a staggering $365 billion or more than Rs 30 trillion which is more than Pakistan’s entire economy. According to ACE Equity data cited in the report, the conglomerate has at least 25 companies listed on stock exchanges and just one of them, Tata Chemicals has fallen five percent in a year.
The most significant contributor to the Tata Group’s market value growth is TCS, the IT major and the crown jewel of its listed businesses with a market value of almost Rs 15 trillion ($170 billion). According to IMF estimates, TCS alone is half the size of Pakistan’s cash-strapped, debt-ridden economy.
Tata Motors shares have risen 110 percent in a year, while Trent’s shares have gained 200 percent. Furthermore, stocks like Tata Technologies, TRF, Benaras Hotels, Tata Investment Corporation, Tata Motors, Automobile Corporation of Goa and Artson Engineering also performed well.
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In contrast, Pakistan is struggling with high levels of debt and inflation and its economy is under severe pressure. The country has $125 billion in external debt and liabilities and its debt-to-GDP ratio has surpassed 70 percent, raising concerns among credit rating agencies about the sustainability of interest payments.
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