Tata Group Stocks: It has been a year since the death of Ratan Tata. In this one year, there has been a huge decline of about Rs 7 lakh crore in the total market value of the companies of Tata Group, one of the largest business groups in the country. A total of 23 companies of Tata Group are listed in the stock market. The total market value of all these companies was Rs 33.57 lakh crore on October 9 last year, which has now come down to Rs 26.39 lakh crore. That means a decline of about 21 percent.
Interestingly, Sensex and Nifty have registered a marginal gain of 0.8 percent during the same period. There was a decline of 4.7 percent in BSE Midcap Index and 5.5 percent decline in BSE Smallcap Index. It is clear from this that Tata Group companies have declined much more than their benchmark indices.
A year ago, on 9 October 2024, Ratan Tata’s demise at the age of 86 shocked the entire country. There is a discussion in the stock market whether his departure has affected the confidence of investors, due to which the Tata Group companies declined? However, experts do not believe so. Experts say that this decline is not due to their absence, but due to global economic conditions and sector-specific challenges. Slowdown in global demand, US President Donald Trump’s tariff war, and slowdown in domestic consumption have impacted the performance of many Tata Group companies.
Which stocks fell the most?
The biggest loss was seen in the shares of Tejas Networks. Tejas Networks shares have fallen by more than 50 percent in the last one year. After this, second number is Trent, whose shares have fallen by about 44 percent. Shares of Tata Technologies are in third place with a decline of 33 percent.
Tata Consultancy Services (TCS), the largest company of Tata Group, is at fourth place in this list. Its shares have fallen by 29 percent in the last one year. Both Tata Elxsi and Tata Motors saw a decline of 28 percent.
Apart from this, shares like Oriental Hotels, TRF, Voltas, Tata Chemicals, and Tata Power declined between 16 to 24 percent. Shares of Tata Communications and Nelco have also fallen by about 13 percent.
However, there were some shares of Tata Group which were successful in beating this massive fall. Tata Consumer Products rose 0.2 percent, Titan Company was up 2 percent, while Indian Hotels gained 5 percent and Tata Steel gained 8 percent. The most spectacular rise was seen in the shares of Tata Investment Corporation, which have jumped by 40 percent in the last one year. The stock is seeing a rise due to the news of Tata Capital’s IPO and possible listing of Tata Sons. Apart from this, the share of Banaras Hotels has also increased by 14 percent in the last one year.
Why are Tata Group shares falling?
Experts say that the slowdown in the IT sector has had a direct impact on TCS shares. Due to trade tensions and possibilities of recession in America, the earnings growth of large cap IT companies is expected to be only 3-4 percent in FY26. Due to this, investors are booking profits in IT shares. Shares of Tata Tech have also become vulnerable due to correction in the IT sector. However, recent indications suggest that the earnings growth of IT companies may gradually improve in the coming quarters.
The last one year has proved to be quite challenging for Tata Motors too. About 80 percent of the company’s earnings come from its subsidiary, Jaguar-Land Rover (JLR). But Jaguar-Land Rover production has been hit due to delays in the US-Europe trade deal and a cyber attack on its UK factory. These incidents have had a direct impact on the company’s sales and profits.
Tata Consumer Products faced pressure on margins due to rising costs in its tea business. Amidst all this, Tata Steel performed better and got some relief from the government’s 10% safeguard duty. Overall, it is clear that this decline in the shares of Tata Group is not due to any one reason, but is a combined effect of global recession, sectoral challenges and sluggishness of domestic demand.
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