Tata Group companies’ market cap skyrocket by ₹70,000 crore today on rally in these companies

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Tata Group companies’ market cap skyrocket by ₹70,000 crore today on rally in these companies
  • While shares of all 12 listed Tata Group companies were up, Tata Motors’s stock was leading the pack with its 20% rally.
  • Tata Investment Corporation rallied 15% today as its investment in other Tata Group companies’ shares picked up.
  • All this led to a boost in the group’s market capitalisation figure, which rose by ₹70,000 crore.
While shares of all 12 listed Tata Group companies were up, Tata Motors’ stock was leading the pack with its 20% rally. The automaker’s consistent efforts towards growing its electric vehicles (EV) business stole the show with the recent one being a billion dollar investment by private equity firm TPG’s Rise Climate Fund.

Along with Tata Motors, investors were also cheered up for strong growth prospects in other Tata Group companies. The fact that Tata Power is heading towards renewable energy, Tata Chemicals benefitting from high product price and Titan on strong demand recovery favoured the stock prices.

All this led to a boost in the group’s market capitalisation figure, which rose by ₹70,000 crore on October 13.

Here are Tata Group company stocks that rallied today:

Tata Investment Corporation rallies 15% today as its investment in other Tata Group companies shares picked up

Tata Investment Corporation rallies 15% today as its investment in other Tata Group companies shares picked up
BCCL

Since most shares of Tata Group companies have turned multibaggers in the last one year and are rallying today as well, Tata Investment Corporation’s stock is also up. This is because the company is a non-banking financial company (NBFC) involved in making long-term investments. It has investments in equity shares, debt instruments, listed and unlisted, and equity-related securities of companies in a wide range of industries. Shares of the company are surging because it is witnessing a boost in its income through dividend, interest and profit on sale of investments.

So basically, with an exposure to Tata Investment Corporation’s stock, one can have exposure to many other Tata Group companies and other unlisted companies as well. The market capitalisation of the company stood at ₹8,529 crore.

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Tata Power rallies 14% on its ambitious plans in renewable energy space

Tata Power rallies 14% on its ambitious plans in renewable energy space
BCCL

Shares of Tata Power has been one of investor’s favourite stocks for quite some time as it has rallied 132% in the last six months. One major reason for the boost is its commitment towards transition to renewable energy. Tata Power aims to be net zero-carbon by 2050.

On October 12, its arm Tata Power Solar received engineering, procurement, and construction (EPC) orders worth ₹538 crore from Energy Efficiency Services Limited (EESL) to set-up multiple distributed ground-mounted solar projects totalling 100 megawatts.

Apart from its foray into the clean energy space, the company’s efforts in the electric vehicle charging segment has also taken investor’s attention. Also, Tata Motors and Tata Power are working on developing charging infrastructure to facilitate rapid EV adoption in India. The market capitalisation of the company stood at ₹71,304 crore.

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Tata Chemicals surges 16% higher soda ash prices

Tata Chemicals surges 16% higher soda ash prices
BCCL

Shares of Tata Chemicals skyrocketed 135% in 2021 so far on a robust outlook for the chemical industry on the back of China plus one strategy, rising soda ash prices and power shortage in China.

“A 30%-50% rally in prices of soda ash, on a year-on-year basis, has boosted the prospects of Tata Chemicals, Purvesh Shelatkar, head of institutional broking at Monarch Networth Capital,” reportedly said.

A major chunk of the company’s revenue comes through the sale of basic chemistry products which includes soda ash. China is currently struggling with a severe shortage of power/electricity, which has forced industries to cut down on production and increased prices of chemical intermediates in the country.

Analysts expect the chemical industry stocks to outperform in the short to middle term and reflect in the companies’ earnings in the coming quarter. The market capitalisation of the company stood at ₹28,305 crore.

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Tata Communications climbs 5% on its aim to drive double digit revenue growth

Tata Communications climbs 5% on its aim to drive double digit revenue growth
BCCL

Shares of telecom company Tata Communications have surged 32% in the last six months on expectation of double digit revenue growth in the coming quarters.

Despite the near-term challenges, the management stuck to its medium-term target of achieving double-digit data revenue growth.

“TCom remains confident of revenue growth from winning smaller deals and usage-based revenue contributes 25% of data revenue, which has significantly moderated. Unlocking is helping drive usage-based revenue, which will add to growth,” said a report by ICICIdirect.

The market capitalisation of the company stood at ₹41,394 crore.

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Titan has jumped 10% in the last 5 days on strong demand recovery across businesses

Titan has jumped 10% in the last 5 days on strong demand recovery across businesses
BCCL

Shares of fashion accessory company Titan have gained 3% on Wednesday and 10% in the last five days on strong demand recovery after the second wave across its businesses. This week, the company reported that the jewellery, watches and eyewear business grew by 78%, 73% and 74% respectively year-on-year in the September quarter.

Besides, as festivities come near large fashion accessory companies like Titan witness a strong demand recovery pushing sales almost back to pre-COVID levels, which is being reflected in its shares as well.

The market capitalisation of the company stood at ₹2.25 lakh crore.

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