SENSEX NIFTY
Dec 28, 2012, 03.42 PM IST | Source: CNBC-TV18

Tata Group: Journey from Rs 8000cr to Rs 4,62,000cr m-cap

Ratan Tata took over as the chairman of the Tata Group in 1991 and in the last 21 years he has steered the company through some turbulent times, we saw a massive slowdown from 1996 to 2003.

Sajeet Manghat

Chief of Bureau, CNBC-TV18

Ratan Tata took over as the chairman of the Tata Group in 1991 and in the last 21 years he has steered the company through some turbulent times, we saw a massive slowdown from 1996 to 2003.

Also read: Tata Group outperforms Nifty, Sensex in Ratan Tata's tenure

Thereafter, he steered the group through exuberance 2003-2008 and followed by another severe downturn and cash crunch that hit all markets in 2008 end and thereafter a double slowdown, first the financial crisis slowdown and sovereign debt crisis. But, in the last two decades the perception that is spoken about is that the Tata Group has not been a wealth creator for its shareholders. But numbers however show a different story.

Sajeet Manghat of CNBC-TV18, in his analysis on the group points out that Ratan Tata took charge of the group in 1991, when the country was opening up to liberalization. His work is reflected with the way he has expanded various companies.  

In 1991, the marketcap of the entire Tata Group was below Rs 8,000 crore and Tata Steel was the largest company which accounted for nearly 50 percent of the marketcap followed by Tata Motors . At that point of time there were 18 listed companies.

Today, the group's market cap has crossed Rs 4,62,000 crore. Tata Consultancy Services ( TCS ) is the largest company by marketcap, and accounts for nearly 52 percent of total group's marketcap. Today, the group has around 32 companies listed on the stock exchanges.

In 1994, the total revenue of the group was around USD 6 billion, nearly Rs 18,000 crore and now it stands at nearly USD 100 billion. When we look at the composition, nearly 58 percent of the revenue comes from the international markets. Between the year 1996-2003, Ratan Tata decided to take a global route so that the group grows beyond domestic market. In FY2004, the group's international revenues stood at nearly USD 4.7 billion, which was 27 percent of the group revenues. Today, it stands at USD 58 billion, and contributes to 58 percent to the group revenue. 

For expansion of business, some of the group companies have acquired nearly 55 companies across the globe, including big companies having a good marketcap. Ratan Tata has used good growth acquisition led strategy to take group to new heights.

 

Tata Steel stock price

On August 22, 2014, Tata Steel closed at Rs 537.60, up Rs 1.00, or 0.19 percent. The 52-week high of the share was Rs 578.60 and the 52-week low was Rs 244.35.


The company's trailing 12-month (TTM) EPS was at Rs 75.41 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 7.13. The latest book value of the company is Rs 629.60 per share. At current value, the price-to-book value of the company is 0.85.

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