Top Tata Shares (2024): List of the Tata Group Company Stocks in India
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Founded by Jamsetji Tata in 1868, the Tata Group is a multinational conglomerate that has become a household name in India. Began as a small textile company, the company has evolved and spans diverse sectors such as steel, automobiles, software, hospitality, consumer and retail, infrastructure, aerospace and defence, financial services, and telecommunications. Therefore, in this blog, we are going to delve into the best Tata shares and how you can invest in them.
Top Tata Shares List Based on Return on Equity (ROE)
Here is a Tata Group share list based on their ROE:
Company Name | Sub-Sector | Market Cap (in cr) | Share Price | PE Ratio | Return on Equity |
---|---|---|---|---|---|
Tata Communications Ltd | Telecom Services | ₹53,782 | ₹1,918.95 | 55.54 | 58.00% |
Tata Consultancy Services Ltd | IT Services & Consulting | ₹16,46,772 | ₹4,502.00 | 35.87 | 50.30% |
Tata Motors Ltd | Four Wheelers | ₹3,98,772 | ₹1,068.45 | 12.70 | 43.10% |
Tata Elxsi Ltd | Software Services | ₹43,135 | ₹6,963.70 | 54.45 | 34.51% |
Tata Technologies Ltd | IT Services & Consulting | ₹41,599 | ₹1,007.20 | 61.23 | 21.88% |
Tata Power Company Ltd | Power Transmission & Distribution | ₹1,35,642 | ₹422.95 | 36.70 | 10.19% |
Tata Consumer Products Ltd | Tea & Coffee | ₹1,16,516 | ₹1,205.80 | 101.29 | 6.66% |
Tata Investment Corporation Ltd | Asset Management | ₹31,684 | ₹6,236.30 | 82.31 | 1.55% |
Tata Chemicals Ltd | Diversified Chemicals | ₹27,062 | ₹1,085.45 | 100.98 | 1.22% |
Tata Steel Ltd | Iron & Steel | ₹1,89,649 | ₹154.14 | -42.74 | -4.49% |
Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.
Note: The data in this list of Tata stocks is from 22nd August 2024. This data is derived from Tickertape Stock Screener.
🚀Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.
Overview of the Top Tata Company Share List in India (2024)
Here are brief overviews of the stocks listed on our Tata share list with price:
Tata Communications Ltd
Tata Communications Limited provides telecommunication services. Its segments include Voice Solutions (VS), and Data and Managed Services (DMS). As of 22nd August 2024, the company’s market capitalisation is Rs. 53,782 cr., and its PE ratio is 55.54. Additionally, this Tata group company has a return on equity (ROE) of 58% and a cash flow margin of 14.97%. Over the past five years, the current ratio has been 60.14%, higher than the industry average of 40.06%.
Tata Consultancy Services Ltd
Tata Consultancy Services Limited (TCS) is an Indian multinational information technology (IT) services and consulting company headquartered in Mumbai. The Tata group company operates in various sectors, including IT consulting, software development, data processing, and business process outsourcing. As of 22nd August 2024, the company’s market capitalisation is Rs. 16,46,772 cr. and is 1.53x as volatile as Nifty. The company has a return on equity of 50.3%, a net profit margin of 18.71%, and a cash flow margin of 18.07%. Furthermore, over the last five years, this largecap company’s net income has grown yearly at 10.29%, higher than the industry average of 10.17%.
Tata Motors Ltd
Tata Motors Limited is an Indian multinational automotive company headquartered in Mumbai and part of the Tata Group. The company produces cars, trucks, vans, and buses, and has a significant presence in the Indian and global automotive markets. As of 22nd August 2024, the company has a market capitalisation of Rs. 3,98,772 cr. and a PE ratio of 12.70. Furthermore, the company has an ROE of 43.1% and a cash flow margin of 15.28%.
Tata Elxsi Ltd
Tata Elxsi Ltd is a leading global design and technology services company. The company provides integrated services from research and strategy to electronics and mechanical design, software development, validation, and deployment across various industries such as Automotive, Media, Communications, and Healthcare. As of 22nd August 2024, the company’s market capitalisation is Rs. 43,135 cr. and is 1.69x as volatile as Nifty. Over the past five years, the company has achieved strong revenue growth at a yearly rate of 17.62%, higher than the industry average of 15.69%.
Tata Technologies Ltd
Tata Technologies Ltd is a global product engineering and digital services company that helps businesses conceptualise, develop, and realise better products. The company was founded in 1989 and is headquartered in Pune, India. Tata Technologies is an engineering partner for various industries, including automotive, aerospace, industrial heavy machinery, and others. As of 22nd August 2024, the company has a market capitalisation of Rs. 41,599 cr. The company’s net income has grown yearly at 20.48%, higher than the industry average of 10.17% over the past five years. In the same period, the company’s debt-to-equity ratio was 9.27%, higher than the industry average of 13.65%.
Tata Power Company Ltd
Tata Power Company Limited is an Indian electric utility and electricity generation company based in Mumbai, India. The company is engaged in generating, transmitting, distributing and trading electricity. It is also engaged in the mining and trading of coal. As of 22nd August 2024, the company has a market capitalisation of Rs. 1,35,642 cr. Over the last five years, the revenue has grown yearly at 14.76%, higher than the industry average of 12.35%. Furthermore, the company’s market share increased from 39.24% to 43.93% during the same period.
Tata Consumer Products Ltd
Tata Consumer Products Ltd, previously known as Tata Global Beverages Ltd, ranks as the world’s second-largest branded tea company. This share of Tata Group specialises in natural beverages, including tea, coffee, and water. Tata Consumer Products has two significant joint ventures. It partners with Starbucks through Tata Starbucks Limited to run Starbucks cafes in India. Additionally, it collaborates with PepsiCo via NourishCo Beverages Ltd., which produces health-focused, non-carbonated drinks. Over the last 5 years, the company’s revenue has grown at a yearly rate of 15.84%, higher than the industry average of 9.41%, and its market share increased from 26.85% to 38.27%.
Tata Investment Corporation Ltd
Tata Investment Corporation, a non-banking financial company (NBFC) backed by Tata Sons Private Limited in the Tata all share list. It is registered with the Reserve Bank of India as an Investment Company. It invests in both listed and unlisted equity shares, debt instruments across various industries, and mutual funds. Over the last 5 years, the company’s revenue has grown at a yearly rate of 20.53%, higher than the industry average of 11.93%, and its market share increased from 1.48% to 2.15%.
Tata Chemicals Ltd
Tata Chemicals Limited (TCL), a member of the Tata Group, excels in science-driven, sustainable chemistry solutions. The company operates through two main segments: Basic Chemistry and Specialty Products. Basic Chemistry includes alkali chemicals like soda ash, sodium bicarbonate, salt, silica, and other halogen chemicals. As of 22nd August 2024, the company has a market capitalisation of Rs. 27,062 cr. and a PE ratio of 100.98. Furthermore, the company has an ROE of 1.22% and a cash flow margin of 18.72%.
Tata Steel Ltd
Tata Steel ranks among the largest steel producers globally, with an annual crude steel production capacity of 34 million tonnes. The company oversees the entire steel manufacturing process, from mining and processing iron ore and coal to producing and distributing finished steel products. Tata Steel operates manufacturing facilities in 26 countries and maintains a commercial presence in over 50 countries. As of 22nd August 2024, the company’s market capitalisation is Rs. 1,89,649 cr.
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What are Tata Shares?
Tata shares are the stocks of companies that are part of the Tata Group, a multinational conglomerate founded by Jamsetji Tata in 1868. Headquartered in Mumbai, the group operates in over 150 countries across six continents. It has a mission to improve the quality of life of the communities through long-term stakeholder value creation based on leadership with trust.
Tata Groups have a diversified range of companies operating in sectors such as FMCG, jewellery, chemicals, communications, hotels, airlines, and more. Despite having over 100 subsidiaries, the Tata Group has 19 publicly listed companies on the NSE and BSE.
Thus, Tata Sons, the principal investment holding company, owns 66% of the equity share capital of the group. The remaining shares are held by philanthropic trusts that support education, health, livelihood generation, and art and culture.
History of Tata Group
Founded by Jamsetji Tata in 1878, the Tata Group has grown into a global conglomerate with operations spanning 10 verticals and 30 companies across 100 countries and six continents. With a revenue of $150 billion (Rs.12 trillion) in 2022-23, the group employs over 1 million people.
Each company in the Tata Group operates independently and is governed by its own board of directors. The Tata Group has 29 publicly listed companies.
Why Invest in Tata Shares?
Here are some of the key reasons of investing in Tata shares:
- Strong Legacy and Reputation: Tata Group, a conglomerate founded in 1868, is synonymous with trust and integrity. Over the years, it has earned a stellar reputation for its ethical business practices and commitment to societal welfare.
- Diversified Business Portfolio: Tata Group spans over a wide range of industries. Thus, diversifying investments in sectors like technology, hospitality, and finance can protect your portfolio from sector-specific downturns.
- Global Presence: Tata Group has a global footprint with operations in over 100 countries.
- Innovation and Sustainability: Tata Group strongly focuses on innovation and sustainability, which are increasingly important factors in today’s investment landscape.
As always, please do your own research and/or consult a financial advisor before investing.
How to Identify the Best Tata Shares for Investing?
Identifying which Tata share is best to buy involves a strategic approach. Here are some of the metrics you can consider:
- Profitability: It’s important to analyse Net Profit Margin (NPM) and Earnings Per Share (EPS) to assess profitability and growth potential.
- Efficiency: Evaluating Return on Equity (ROE) to gauge shareholder value creation is crucial. Prioritise all Tata group companies with ROE exceeding industry benchmarks.
- Debt Management: You can analyse a company’s debt-to-equity ratio to assess financial stability and market standing. Therefore, companies with lower debt-to-equity ratios should be opted for, indicating manageable debt levels.
- Dividend Yield: Prioritise companies with a consistent track record of dividend payments and a yield higher than bank interest rates for passive income.
Features of the Best Tata Stocks
Let’s have a look at the features of the best Tata shares to buy for the long term.
- Diversified Portfolio: Companies of Tata Group operate across various sectors, such as automotive, steel, IT, and consumer goods, providing a diversified portfolio for investors.
- Exposure to Tata Group Businesses: Investing in Tata Group companies provides exposure to the performance and growth of Tata Group businesses, which can be beneficial for long-term investors
- Global Economic Sensitivity: Shares of Tata Group are affected by global economic trends, especially in the ten verticles. Thus, changes in the global market can have a significant impact on the performance of Tata shares, making them sensitive to international economic dynamics.
Advantages of Investing in Tata Shares
Here is a list of benefits of investing in Tata shares:
- Diversification: Shares of Tata businesses include several industries like steel, automobiles, software, hospitality, and more. With the help of portfolio diversification, investors can build a balanced risk profile as the performance of one sector may offset the other.
- Potential for Capital Appreciation: While past performance is not an indicator of future returns, Tata Companies have delivered strong returns for their shareholders.
- Regular Dividend Payouts: Many of the Tata listed companies have a history of paying regular dividends to their shareholders. Consequently, investing in Tata shares can provide you with a steady income stream and help to generate long-term wealth.
- Growth Potential: Tata Group is constantly exploring new opportunities for growth and expansion, particularly in emerging sectors such as electric vehicles and renewable energy. Therefore, by investing in Tata shares, you can potentially benefit from future value creation.
Who Should Invest in Tata Shares?
Investing in Tata shares can be suitable for various types of investors and let’s have a look at them:
Long-term Investors
Tata Group shares are diversified across various sectors, which can help mitigate risks associated with concentration in a single sector. The group’s global presence and focus on innovation and sustainability make it an attractive investment option for those with a long-term perspective.
Risk-tolerant Investors
The aggressive expansion strategy can lead to fluctuations in financial performance. Investors who are comfortable with these risks and can withstand market volatility may find Tata stocks appealing.
Diversified Portfolio Seekers
Tata shares benefit from operations across various sectors, providing a natural hedge against sector-specific downturns. This makes them suitable for investors seeking to diversify their portfolios across different Tata industries within a single economic ecosystem.
Performance Parameters for Tata Shares
There are numerous factors that can affect the performance of Tata Group. Thus, some of them are listed below:
Industry Trends and Global Economic Conditions
The performance of Tata shares largely depends on the performance of the industries in which it operates. Economic trends and conditions can have a significant impact on the performance of these industries and by extension, on Tata shares.
For example, a boost in the automotive industry could positively impact the share price of Tata Motors, a subsidiary of Tata Group.
Financial Performance & Earnings Reports
The financial performance of Tata-listed companies can directly impact the Tata stock price. Thus, investors and analysts should closely monitor the company’s financial reports, including revenue, earnings, and cash flow.
Currency Exchange Rates
Tata Companies operate in multiple countries and currencies, making them susceptible to exchange rate fluctuations. Changes in exchange rates can impact the company’s revenue, expenses, and profitability, ultimately impacting even the best Tata share to buy.
Regulatory Changes
Changes in regulations, such as tax policies or environmental regulations, can potentially impact the performance of Tata shares, including the best Tata shares to buy for long term. For example, lenient environmental regulations could decrease Tata Steel’s production cost, which could positively impact the Tata share price.
Risks and Challenges of Investing in Tata Shares
Investing in Tata stocks comes with its own set of risks and challenges that investors must carefully consider:
- Market Volatility: The stocks of Tata Group might not be immune to market fluctuations. Additionally, external factors such as economic conditions, global events, and industry-specific challenges can impact Tata stock prices, leading to potential short-term volatility.
- Global Economic Factors: As a global conglomerate, Tata Group’s performance is influenced by economic conditions in different regions. Economic downturns or crises in key markets can have a cascading effect on the group’s financials and thereby on even the best Tata stocks to buy in NSE.
- Regulatory and Compliance Risks: Changes in regulations, tax policies, or legal issues can impact Tata Group’s operations and financial results. Therefore, staying compliant with evolving regulatory frameworks can be a challenge.
Factors Affecting Tata Shares in India
Several factors can influence Tata Group’s listed companies, and some of them have been listed below:
- Global Conditions: Tata Group has a significant global presence and can influence the performance of Tata shares, especially in industries such as automotive, IT services, and steel.
- Industry-specific Factors: Each business within the Tata Group stocks list operates in a specific industry, and factors such as demand-supply dynamics, technological advancements, and regulatory changes can significantly affect the stock’s performance.
- Market Sentiment and Investor Confidence: Market sentiment and investor confidence are crucial factors in driving the demand for all Tata stocks. Factors such as overall market trends, economic conditions, global events, and investor perception of the Tata Group’s performance can influence the investment decisions.
- Commodity Prices: For all companies of Tata in sectors like steel, fluctuations in raw material prices can affect production costs and profit margins.
- Regulatory Environment: Changes in government policies and regulations can significantly affect the Tata shares.
- Macroeconomic Factors: Macroeconomic variables, including interest rates, inflation, and government policies, can affect the investment decision and impact Tata Group share price.
To Wrap It Up…
To conclude, Tata shares could be an attractive investment option as it exposes you to the Tata Group’s diverse business. The Group is a well-established and diversified conglomerate with a significant presence in several industries and can offer several benefits. However, like any investment, it may also carry potential risks. Therefore, investors must conduct their due diligence and consider various factors such as market conditions, financial performance, and risk tolerance before investing.
Frequently Asked Questions on Tata Shares
Based on the return on equity, here are the top 5 Tata shares from our list of Tata shares:
1. Tata Communications Ltd
2. Tata Consultancy Services Ltd
3. Tata Motors Ltd
4. Tata Elxsi Ltd
5. Tata Technologies Ltd
Note: The data on this Tata companies list is from 22nd August 2024.
Tata Group is a multinational conglomerate founded by entrepreneur and philanthropist Jamsetji Nusserwanji Tata in 1868.
Tata stocks have experienced significant growth in recent years, outperforming the broader market. However, investors should understand both the growth potential and the challenges faced by the Tata Group before making any investment decisions.
Many Tata companies have a track record of consistent growth, making them attractive for long-term investments. However, as past performance does not guarantee future outcomes, investors should consult a financial advisor and conduct thorough research before investing.
Tata Teleservices (Maharashtra) Ltd is a smallcap company in the list of Tata companies in NSE.
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