The Tata Group is one of the largest and most well-respected conglomerates in India, with a history dating back more than 152 years. The group was founded in 1868 by Jamsetji Tata, and since then, it has grown to become a global enterprise with businesses spanning industries such as steel, automobiles, information technology, retail, jewellery, telecom, and more.
Tata Sons is the principal investment holding company and promoter of Tata Companies. Each Tata company or enterprise operates independently under the guidance and supervision of its board of directors.
As per the company website, there are 29 publicly-listed Tata enterprises with a combined market capitalisation of ₹23.6 trillion as on March 31, 2022.
In this article, we will take a closer look at the nine Tata Group stocks that have delivered impressive returns to their shareholders in the last five years.
Tata Elxsi has emerged as the top performer in the group, with a return of over 400%. Tata Elxsi provides product design and engineering services to the consumer electronics, communications, and transportation industries, as well as systems integration and support services for enterprise customers.
The company shares have witnessed a strong spike in the last five-year period, moving from around ₹1,183 apiece to ₹6,660, representing a return of nearly 463%. Further, in the last 10-year period, this IT stock has surged from ₹93.55 apiece to ₹6,660, logging nearly 7019% gain.
With a rally of more than 300%, Automotive Stampings and Assemblies emerged as the second-top gainer in the Tata group. The company is engaged in the business of manufacturing sheet metal stampings, welded assemblies, and modules for the automotive industry.
The company shares have moved from ₹73.70 apiece in May 2018 to the current position of ₹328.60, yielding a return of nearly 345%. During the March quarter of FY23, the company's net profit saw a substantial increase of 65.19% compared to the previous December quarter, reaching ₹3.37 crore.
Trent, the retail arm of Tata Group, was the third-best performing stock in the group. Its shares showed a remarkable performance, delivering a return of nearly 322% in the last five years. The company's recent March quarter performance was impressive, exceeding analysts' estimates.
"Trent continues to outperform peers on most parameters (LFL revenue, retail expansion, operating profit). This is the seventh consecutive quarter of outperformance," said ICICI Securities.
"In our view, TRENT has created a unique and strong competitive edge in apparel retail by having complete control over the customer experience through its own stores and private labels. It is able to offer comparable quality products at a significantly lower price point (approximately 25–30% less) than comparable brands," said the brokerage firm.
In Q4FY23, the standalone net profit of the company rose by 40% YoY to ₹105 crore, while the revenue from operations surged to ₹2,077 crore in Q4FY23 from ₹1,185 crore in Q4FY22.
|Scrip Name||5-Year Return (%)|
|Automotive Stampings and Assemblies||345%|
|Tata Consumer Products||170%|
|Tata Investment Corp||166%|
Next on the list is a small-cap company called NELCO, which has delivered significant returns to its shareholders over the past five years. During this period, the company's share price soared from ₹190.25 per share to ₹615.70, representing a remarkable increase of 223.62%.
Established in 1940, Nelco Ltd. is a part of the Tata Group. Nelco operates in the areas of VSAT connectivity, Satcom projects, and Integrated Security and Surveillance solutions. It offers a range of innovative and customized solutions for businesses and government institutions.
From May 2018 to May 2023, Titan Company, one among India’s most respected lifestyle companies also saw a stellar rise in its value. The stock experienced a steady and continuous climb, starting at ₹956.05 per share and rising to ₹2,732.90 per share. This impressive increase represents a rise of 185.86%.
At current levels, the stock is just 2.11% away from its all-time high of ₹2,791. The company posted better-than-expected results for the March quarter of FY23 (Q4FY23), with its net profit growing 50% YoY to ₹734 crore as against ₹491 crore in the year-ago period.
Shares of Tata Consumer Products, the second-largest player in branded tea in the world, delivered handsome returns to their investors over the last five years, rocketing up by 170%. The company on April 25, reported a 21.12% rise in its consolidated net profit at ₹289.56 crore in the fourth quarter ended on March 31, 2023, led by a mixed growth from volume and price in India business.
On similar lines, Tata Investment Corporation, an NBFC firm, saw its share price advance from ₹819.05 apiece to ₹2,179.80, jumping up by nearly 166%. While other stocks in the group, including Indian Hotels and Tata Power, also delivered returns between 100- 157% during the last five years.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.