Growing investor interest in Tata group companies has catapulted the aggregate market value of 21 major Tata group companies to $305 billion, according to September 14 closing share prices. The combined market capitalisation (MCap) of the salt-to-software conglomerate has increased by over $100 billion in the last one year. At $215 billion, the second most valued business group is the HDFC group, mentored by legendary banker Deepak Parekh. The group includes HDFC Bank, HDFC Ltd, HDFC AMC, and HDFC Life Insurance.
At $205.6 billion, the third largest is Mukesh Ambani’s Reliance Industries (RIL) group, which includes RIL and its listed associate companies Reliance Industrial Infrastructure and Alok Industries. RIL is the largest single company by MCap in India with $204 billion. It became the first Indian company to hit $200 billion MCap in September 2020, followed by a spate of foreign investments in Reliance Jio and Reliance Retail which triggered the share price. RIL share price stayed at around ₹2,000 until July this year, but it picked up momentum later and hit a high of ₹2,480 about a week back.
TCS, the largest company in the Tata fold with Mcap of $195 billion, is around $9 billion short of RIL. The software giant’s share price has appreciated 56% in the last one year, thanks to the large new deals and increasing technology adoption by various core industries. TCS targets to achieve double digit growth in this financial year. Titan is the second most valued company in the group (MCap ₹1,82,267 crore).
Tata Steel is the third largest company with ₹1,74,759 crore MCap. Share price of the steelmaker has increased 258% in the last one year because of rising domestic demand and increase in prices. Despite headwinds in the auto sector, Tata Motors has also appreciated in value, but the recent global shortage of chips in the market has pulled down its share price from ₹350 to ₹280-₹300. Though the electric focused auto giant is still over ₹1 lakh crore in market value.
HDFC group's HDFC Bank is the third most valued institution in the country with MCap of ₹8.58 lakh crore, followed by Infosys (₹7.15 lakh crore) and Hindustan Unilever (₹6.49 lakh crore). Its housing finance company HDFC Ltd, which has MCap of ₹5.09 lakh crore, has also contributed substantially to propel HDFC group to cross the $200 billion aggregate valuation.
Two family-run businesses which entered the $100 billion club recently are Adani and Bajaj. Both the groups have total market valuation of over $120 billion each. Adani Transmission is the most valued company in the group’s fold with ₹2.14 lakh crore market valuation. Four group companies—Adani Enterprises, Adani Ports & SEZ, Adani Green Energy, and Adani Total Gas—have over ₹1.5 lakh crore valuation.
The rally of finance business has helped Bajaj group to achieve the remarkable feat. The share price of Bajaj Finance has jumped 111% in the last one year. The company's MCap stands at ₹4.48 lakh crore as on September 14. The holding company Bajaj Finserv is another sensation with ₹2.68 lakh crore MCap. Bajaj Auto is also valued over a lakh crore.
Infosys, which crossed $100 billion in August, is now $3 billion below the mark. ICICI group is now at the door step of $100 billion club, thanks to the value spike of banking business. ICICI Bank reported 78% increase in standalone profit to ₹4,616 crore in the first quarter ended June 30, 2021 as bad loan buffers decline.
UltraTech Cement is the most valued from in the Aditya Birla group with Rs 2,26,810 crore MCap. Grasim and Hindalco are valued over a lakh crore each. The five Aditya Birla Group companies have aggregate valuation of $65.96 billion. L&T group is also just behind Birla with $63.8 billion MCap. The engineering and construction giant L&T has ₹2,38,258 crore valuation, followed by L&T Infotech and Mindtree.