How Tata Stocks Fared During N Chandrasekaran's First Five-Year Term
The Tata Group outperformed the Nifty 50 in the last five years that coincided with the first term of N Chandrasekaran.
The Tata Group outperformed the Nifty 50 in the last five years that coincided with the first term of N Chandrasekaran as chairman of group parent Tata Sons Pvt.
Chandrasekaran was reappointed for five years on Friday, according to a statement by Tata Sons. He first took charge on Feb. 21, 2017, after the holding company of India's largest group removed Cyrus Mistry.
Since then, the Nifty Tata Group Index has surged threefold, beating the benchmark Nifty Index's more than twofold jump. The Nifty Tata Group Index is computed on a weekly basis.
Yet, the Tata gauge started outperforming only after August 2020, as some of the group stocks beat the benchmark in an unprecedented rebound from the pandemic lows. Till then, both the indices moved in tandem.
In the last five years that Chandrasekaran was at the helm, the Tata Group's total market cap rose by 176% or just short of a threefold rise. Of the 23 listed Tata firms, the market value of 15 more than doubled during the period.
Tata Teleservices (Maharashtra) Ltd. led with the highest 21-fold gain in market cap—from Rs 1,290 crore to Rs 30,399 crore. The company's deleveraging exercise aided the surge after the telecom arm exited the retail business to focus on enterprise business.
Indian Hotels Co. Ltd., Oriental Hotels Ltd., Rallis India Ltd., Tata Coffee Ltd., Tata Metaliks Ltd. and Tata Motors Ltd. relatively underperformed.
While Tata Consultancy Services Ltd. contributes the most to the group market capitalisation, some of the other group company's share changed.
Tata Motors' contribution has fallen to 8% from 17% five years ago, while Titan Co. is now the second most valuable Tata company. Tata Steel's market capitalisation rose.
The market value of Tata Consumer Products Ltd. doubled after the portfolio rejig between Tata Chemicals Ltd. and erstwhile Tata Global Beverages Ltd.