TATA group of companies – Full Analysis

We are visiting speak about a promoter who has the most important stake in listed companies in India. This implies that almost all listed companies that trade on BSE and NSE have a promoter who has Rs. He holds 9.28 lakh stakes. Earlier, the biggest stake was with the central government. But within the previous couple of days, this promoter has overtaken the central government and has the best stake of Rs 9.28 lakh crore in listed companies.
Whereas (talking about the central government), the complete share of PSUs with the govt. is Rs 9.24 lakh crore.
This means that within the recent past, this promoter has replaced the central government in terms of valuations. If you've got not guessed the name of the promoter, then let me tell you that today we'll speak about the sons of Tata. Many companies of Tata Sons that change the stock exchange.
Let's also discuss their business, competitors and financials. so you get to grasp about the businesses that do business within the exchange with Tata Sons as their promoter.
Let's quickly discuss the primary company that belongs to Tata Sons and trades within the securities market.
Before talking about the corporate first, let's discuss the whole IT sector. There are two such companies of Tata Sons that job directly within the IT sector. Tata Consultancy Services is that the second largest company in India in terms of capitalization. First let's speak about the IT sector. In FY20 it had been estimated that the entire revenue from the IT sector was US$191 billion. Breaking it down into exports (to other countries) and domestic trade are US$ 147 billion and US$ 44 billion respectively. From here you'll be able to understand that the full revenue of the IT sector is large and foreign exports are a significant contributor. Companies serve foreign customers and generate revenue. I’ve got used the foreign revenue term for this. Except this, the IT sector has garnered plenty of limelight. When the COVID situation was at its peak, many industries were negatively impacted and their revenues also fell. But the IT sector is that the one that saw the smallest amount negative impact.
When the COVID situation was at its peak, lots of companies went online, which directly benefited the IT companies. Also, since the workers of IT companies failed to must move to the office, there wasn't much negative impact on the business of the corporate. This sector has given excellent returns to its investors in recent times. So friends, it's expected that by the year 2025, the IT sector industry can reach US $ 350 billion. Now let's discuss the primary company of Tata Sons. The name of this company is Tata Consultancy Services.
As you recognize the capitalization of this company is quite 10 lakh crore rupees. Hence it's the second largest company by market capitalisation. Another interesting fact is that about 75% of the overall profits of Tata Sons are provided by Tata Consultancy Services. TCS contributes 75% of the whole profit of Tata Sons i.e. about 3/4th. this is often a large number. Hence TCS is a very important company of the whole Tata group. TCS' business operates in 149 locations in 46 countries. You’ll understand that the business of TCS is spread almost altogether the important countries of the globe. Now we are going to speak about TCS intimately, its revenue from each geography and therefore the industry that contributes the foremost to TCS. As you'll see the largest contributor to TCS is from North America. It’s followed by the United Kingdom contributing 15.9%. Next is Europe which may be a significant contributor to TCS' revenue i.e. 14.7%. Asia-Pacific and India generate approximately 9.3% and 5.7% of revenue, respectively.
After this, let's speak about the various sectors that contribute to the business of the IT Company. IT companies provide services to healthcare, auto segment etc. Here it's important for you to grasp the TCS revenue breakup as compared to different industries. Let me take you to my screen. The biggest revenue share for TCS is that the banking sector: BFSI at 30.5%. After this, their major revenue is 15.2% from the retail sector. While manufacturing and technology and services sectors contribute 9.9% and 8.6% of the revenue respectively. Another interesting fact about TCS is that it's a major asset builder for investors in India. Its revenue CAGR growth from FY 2005-2020 is 16%. Over the last 15 years, this company has maintained a growth of 15% in its top line. But in terms of profitability, the CAGR growth is nineteen. So you'll be able to understand that the corporate has grown and created lots of import in terms of cash thanks to its continuity.
TCS' competitors are Infosys, Mindtree, L&T Infotech and Wipro.
These companies operate directly within the services sector and act as a right away competition to TCS. The share price of TCS is around Rs 2,900. It’s given 34 per cent returns to its investors within the last one year. Its immediate next competitor is Infosys. It’s given over 60% returns to its investors.
Interestingly, the share price of this company is around Rs 1,830. But within the last one year, it's given quite 100 per cent returns to its investors. This suggests that if you had invested your money here, your money would have doubled by now. The capitalisation of this company is around Rs 12,000 crore. If you have got not guessed its name, then allow us to tell you that the name of this company is Tata Elxsi.
The business of this company includes design and technology services for various business sectors. But their major business segment is that the automotive sector. It contributes over 42% of revenue. His main focus is on the automotive sector. Broadcasting and communication are a number of the opposite verticals where this company operates. Now let's discuss the offshore revenue of this company. Tata Alexi gets 36% of its revenue from the US. While from Europe it generates 38% of the revenue. About 70% of the revenue comes directly from Europe and USA. The consistency in growth seen in TCS is additionally seen in Tata Alexi over the last 5 years. Its profit is over 19% CAGR growth of last 5 years. But the consistency shown by TCS has been maintained for the last 15 years. But here we are talking about this company within the last 5 years. The continuity and performance of this company are going to be known within the future. The industry within which Tata Alexi operates features a P/E ratio of twenty-two. The P/E ratio of Tata Alexi is around 34. The debt level of Tata Alexi is negligible. You’ll call it a virtually debt free company.
Its rivals include L&T Infotech which has given excellent returns to its investors over the past one year. So this was about the primary two companies that job directly within the IT sector.
Now let's move fast to the third company which works directly within the auto sector. This company has given remarkable returns to its investors in recent times. The name of this company is Tata Motors. You need to have known about Tata Motors. Its share price trades for Rs 400-500 at a time. But it's not performed well in recent times. Its share price once fell below Rs 100. But currently, its (Tata Motors) share price is trading at Rs 180-185. Recently it's given returns of over 100% to its investors. But to know its business, it's important to grasp the segment and therefore the auto industry outlook. The auto sector was prying a slowdown for the last 2-3 years. But in recent times there has been a growth during this sector.
The CAGR growth for FY 16-20 has been 1.2%. The expansion within the auto sector has been very low. But the trend of the previous couple of months shows growth during this sector. India's auto sector is that the fourth largest car manufacturing industry within the world. This rank is 7th for commercial vehicles. India may be a significant contributor to the planet auto market where an oversized number of vehicles are manufactured.
Electric vehicles are vital within the discussion of automobiles. India's electric vehicle segment will cross Rs 50,000 crore as per trends by FY2025. Many automobile and technology companies have shown interest in working during this field. Tata Motors is understood for cars. But a noteworthy point is that Tata Motors' vehicle brands - Jaguar and Range Rover - account for 80% of the revenue. The rise in share price (investment) depends on the turnover of the corporate. Tata Motors' business is heavily enthusiastic about Jaguar and Range Rover (which contribute 80% of revenue)
Important Ratio - Debt-Equity Ratio indicates that Tata Motors contains a high debt level. Its debt-equity ratio is 2.28. This can be considered a really sizable amount compared to the complete automobile sector. Tata Motors' total sales grew by 108 per cent in November.
The impact of Brexit was seen here still. It’s been predicted that the import-export restrictions will disappear when the Brexit deal is completed. But this can be (far-fetched) speculation that you simply shouldn't. Instead, you ought to have a look at the basics of the business. While studying about Tata Motors it's important for you to understand the continents that contribute to its revenue (besides knowing that 80% of its revenue comes from Jaguar and Range Rover). The company's revenue from North America, Europe, and also the UK is $6.9, $5.6, and $5.7 billion, respectively. There’s also a revenue dependency of $3.9 billion on China. I hope this gave you a plan about its revenue dependence on various companies. The present share price of Tata Motors is Rs 183. The capitalization of this company is Rs 60,000 crore.
It has given a negative 0.33% return within the last one year. But the corporate has risen above 100% since its March lows. We are going to not speak about P/E ratio here as Tata Motors is currently a loss making company. You cannot discuss P/E ratio whenever a corporation encompasses a loss.
Its major competitor is Maruti Suzuki which is that the market leader within the passenger segment with 50% market share. Another major competitor of Tata Motors is Eicher Motors which manufactures commercial vehicles. As you recognize, the business of Tata Motors is additionally spread in commercial vehicles. Therefore, its direct competition is with Eicher Motors.
Now let's discuss the retail and goods segment industry. With this the following company of Tata Sons is associated. The retail sector contributes 10% to the whole GDP of India. In recent times, this sector has emerged as a dynamic and fast-paced sector. Plenty of recent players have entered this field which has resulted in rapid changes. The whole consumption in India for the financial year 2020 is $3600 billion. This can be admired 10% of India's GDP. Therefore the first company that emerges from this area and therefore the fourth company from Tata Sons is Tata Consumer Products. This can be an organization that works directly within the FMCG sector. a very important product of this company is Tata Salt. You may have used it. If you are doing not comprehend this product, then let me tell you that this product sold belongs to Tata Consumer Products Company. Except for this, there are other brands yet. Tetley is a vital tea brand that operates in India and is owned by Tata Consumer Products. Earlier the name of this company was Tata's Global Beverages. Later its name was changed to Tata Consumer Products. Recently, Tata Consumer Products has shown remarkable performance for its investors. Within the last one year, this company has given returns of quite 80 percent to its investors. At present, the share price of this company is around Rs 580. The capitalisation of this company is Rs 54,000 crore.
The P/E ratio of this company is around Rs 61. But allow us to tell you that the P/E ratio is typically high within the FMCG sector. That's why this company also trades at high valuations.
So now let's speak about the subsequent company i.e. the fifth company of Tata Sons which is directly associated with Tata Consumer Products. The corporate also operates within the beverage segment. Here Tata Coffee works as a subsidiary of this company. Tata Coffee cultivates, grows plantations and sells them as final products to customers. The key agricultural regions of this company are Karnataka and province. The key coffee cultivation places are Coorg and Chikmagalur. Other than India, this company also operates within the US and UK. The share price of this company is around Rs 107 and its market capitalisation is over Rs 2,000 crore. it's given 16% return to its investors within the last one year. The Return on Equity (ROE) of Tata Coffee is around 10%. While the debt-equity ratio of Tata Coffee is around 0.93. this suggests that debt and equity are equal.
Now let's speak about the sixth company of Tata Sons. This is often a famous company that you simply must have heard about. Its name is Titan. This company has given them multi-bagger returns in recent years. I'll take you straight to my screen to clarify this company to you. From here you'll study the company's brand (also the launch) during a chronological manner. As you'll be able to see on my screen this company was started in 1984. The entire journey is on screen. The Titan brand was launched in 1987. This was followed by the launch of the Tanishq brand in 1996. Aside from this, Sonata, Fastrack and lots of other brands were launched by this company which operates in India. One interesting thing about it's that it's the 5th largest watch maker within the world. Titan's business is spread across 32 countries (exports). This company has over 1,500 stores. The business of this company is extremely strong. Over the years, this company has shown consistency in its revenue and profits. Revenue CAGR growth of last 5 years is around 12%. While the profit CAGR growth is quite 15%.
From here you get a concept that Tata has shown consistency in performance over the last 5 years. The share price of Titan is around Rs 1,550. It’s given a positive 34% return to its investors within the last one year. This may be considered as an excellent return for the investors together with the covid effect. The industry during which Titan operates encompasses a P/E ratio of 30. Whereas the P/E ratio of this company is over 190. this implies that the P/E ratio of this company is de facto high. Whereas the debt-equity ratio of this company is 0.55.
The seventh company of Tata Sons was started in 1954. This company operates in an industry that contains a lot of multinational players. The corporate has outperformed all its multinational competitors and has become the market leader in its segment. The name of this company is Voltas. This company works within the AC and Refrigeration sector. The demand for ACs has increased in recent times. So this company also saw growth. In FY20, the corporate had 15,000 touchpoints to directly reach intent on customers and sell their products. As I told you Voltas is that the market leader. Voltas incorporates a market share of over 23 per cent within the room AC segment. Now let's speak about the continuity of Voltas in terms of monetary performance. Its CAGR revenue growth has been 8% within the last 5 years. Whereas for the last 5 years the profit CAGR growth is 6%. The share price of Voltas is around Rs 831. Within the last one year, it's given a return of 26 per cent to its investors.
Now let's discuss the eighth company of Tata Sons. The name of this company is Trent. If you haven't heard of Trent. So allow us to tell you that this is often a Tata Sons company. This business of the corporate is selling readymade garments within the retail segment. This can be the most business of the corporate. Except for this, the business of the corporate is split into three parts.
First is Westside, second is Star and third is Landmark. Westside sells footwear and other accessories that cater to both men and girls. Star operates through 30 stores in India with brands like Star Daily. Landmark is one such model through which they sell toys that meet the wants of the family. The share price of Trent is currently Rs 674. It’s given 24 per cent returns to its investors within the last one year. This may be considered a noteworthy number. While the capitalisation of Trent is Rs 24,000 crore. Here we cannot speak about P/E ratio because the industry within which this company operates incorporates a typical P/E ratio of 87. But since this company is making loss, we are going to not discuss the P/E ratio.
Not taking much time, let's speak about the 9th company which has Tata Sons because the promoter. The primary company during this video - Tata Chemicals. Tata Chemicals could be a company of Tata Sons that works within the chemical sector. But now you'd prefer to understand the products manufactured by this company within the chemical sector. the foremost products of Tata Chemicals are Soda Cache and bicarbonate. Now you'd wish to fathom the employment of those products. The most important uses of the products manufactured at Tata Chemicals are in glass, detergent, silicate, textile, food, pharmaceutical and mining and chemical processing. Other than this, Tata Chemicals is spread across various countries. Its business is spread across the United Kingdom, Kenya and therefore the US. Now let's speak about the journey of Tata Chemicals i.e. how this company has changed its business within the previous few years. Journey of Tata Chemicals. Till 2016-17, the corporate mainly dealt in inorganic chemicals, fertilizers and agro-inputs sectors. But by FY2018, the corporate divested from urea and phosphates to divest the business and concentrate on inorganic chemicals. In FY19, the corporate increased its major focus in specialty chemicals, among other chemicals. In FY20, the corporate divested from the buyer products business. The foremost focus areas of the corporate are basic chemicals and specialty products. We discussed this well. After this, now let's speak about the most objective of the corporate within the coming time. Four main objectives of the corporate. Under performance materials, they require to take care of their lead in washing soda. Except for this, the corporate wants to expand within the field of crop protection, nutrition and seeds in agricultural sciences. In nutritional science, the corporate seeks to create a valuable addition to the salt portfolio. Other than this, under Energy Science, the corporate wants to expand its lithium-ion battery. If you are doing not comprehend lithium-ion batteries, then allow us to tell you that these batteries are employed in electric vehicles. The main focus of the many battery makers has shifted here. The last 5 years revenue CAGR growth of Tata Chemicals is negative 10%. This can be not an honest number. But profits have grown at a CAGR of 4%. Here you ought to also know that the corporate has done plenty of disinvestment and reorganization of its business. The share price of Tata Chemicals is Rs 489. The capitalization of this company is around Rs 12,400 crore.
It has given over 60 per cent returns to its investors within the last one year. The P/E ratio of this company is approximately 17. While the industry P/E ratio is around 24. After Tata Chemicals, now let's pass on to the following company. It comes from the metal sector. We are talking about Tata Steel. Metal prices have risen recently. As a result, metal-linked companies gave excellent returns to their investors. Before talking about Tata Steel let's discuss steel as a sector. The steel sector saw production of 111 million tonnes in 2019. it's become the world's second largest company in production. The explanation for such high production in India is that the availability of ore (in India) which is crucial for this sector. So this was the discussion of production. Between FY 2016-20, steel consumption has seen a 5% CAGR growth. About 100 million tonnes of steel is consumed in India. This is often a large number. The expansion of CAGR under consumption has also been seen in a very higher percentage. In 2017 the National Steel Policy came out which lays down India's objective. India's total production capacity will increase by 300 million tonnes by 2030-31. Per capita steel consumption has increased from 57 kg to 74 kg within the last 5 years.
In rural India, this number is nineteen kg and therefore the government aims to extend their consumption in rural areas from 19 kg to 38 kg. Tata Steel is that the second largest geographically diversified company within the world. This company mines, manufactures and produces and distributes final materials to customers. From here you'll be able to understand how Tata Steel is linked to the whole value chain. Tata Steel has operations in 26 countries. But commercially this company is directly related to 50 countries. From here you'll understand that Tata Steel is geographically diverse. The share price of Tata Steel is around Rs. 693. Within the last one year, this company has given 47% return to its investors. Recently the share price of this company has become very high. The capitalization of this company is Rs 80,000 crore. the main competitors of Tata Steel are SAIL and JSW Steel.
Now let's speak about another company. Its name is Tata Metallics. This company could be a subsidiary of Tata Steel. The business of this company includes manufacturing of foundry-grade atomic number 26. Additionally, it provides end-to-end technical services and support to other companies regarding mixing and melting, moulding and core making. Other than this, the corporate also provides consultancy services to numerous companies regarding pollution control and training. This company was established on 10 October 1990 in province. Earlier its name was Tata Corf Metal. The name of this company was changed to Tata Metaliks in 1992. The company's sales CAGR growth is 13%. Whereas within the last 5 years the profit CAGR growth is 14%. The share price of this company is around Rs 693. Its market capitalisation is around Rs 2,020 crore. The P/E ratio is 10 while the industry encompasses a P/E ratio of 13. Within the last one year, this company has given a positive 2% return to its investors.
Now let's speak about Tata Steel Long Products. The corporate is additionally a subsidiary of Tata Steel. The company's business is manufacturing steel pipes, tubes and related products. Interestingly, Tata Steel buys these products from it at market value. One interesting thing about this company is its sales CAGR growth. The figure for the last 5 years is around 35%. this can be an exquisite number.
Here we will be not be able to discuss the profits of the last 5 years because this company has reported huge losses within the last one year. But the CAGR growth within the profit for the last 4 years is around 7.7 percent. The share price of this company is Rs 622. The capitalization of this company is Rs 2,800 crore. a remarkable fact about this company is that it's given over 40% returns to its investors within the last year.

After this let's discuss Tata Power. We talked about Tata Power very well in an old video on Electric Vehicles. But before talking about Tata Power. Let's have some discussion on the electrical field.
A recent trend as seen within the power sector is renewable energy. The target for 2022 is 227 GW. This implies that out of the overall energy, about 227 GW is predicted from the renewable sector. This can be a goal. Here the estimate (extraction) from the solar sector by 2022 is 114 GW. Coal based power generation is about 200 GW. It’s expected that by 2022, a rise of about 47 GW are going to be seen here. a motivating fact about the facility sector is that from April-June 2020, there was an FDI investment of about US$ 50 billion. This can be 3% of India's total FDI investment. From here you'll understand that recently FDI within the power sector has also increased. Tata Power is that the largest integrated power generation company in India. (Interesting Facts) the overall electricity generated from Tata Power is clean energy (32%). Its business is adjoining all the places where it can contribute to electricity – power generation, transmission etc. Recently Tata Power was in news because it has started specializing in charging infrastructure. Charging infrastructure is incredibly important whenever we speak about electric vehicles.
Tata Power has acted and behaved during this regard. In recent times, Tata Power has signed MoUs with petrol pumps to develop charging infrastructure there. The share price of Tata Power is Rs. 80. The capitalisation is Rs 25,000 crore. Within the last one year, this company has given a return of 37 percent to its investors. The company's P/E ratio is approximately 23. But the common industry P/E ratio is 11. Compared, Tata Power incorporates a slightly higher P/E ratio. Its major competitors in renewable energy are Adani Green, Adani Power and NTPC.
Now we are going to speak about Indian Hotels. It’s a Tata Sons company. Here the primary name comes of Taj Hotels. If you have got not heard about Taj Hotels, then allow us to tell you that the ownership of this company is with Tata Sons. It’s a brand under Indian Hotels. Once promoters of Indian hotels is discussed, the name Tata Sons comes up. Indian Hotels has 93 hotels across 55 locations. This company was established in 1889 and is that the oldest company of the Tata group. Whenever we speak Indian hotels, Taj Hotels always involves our mind. There are other brands of this company which i might wish to discuss. Its other brands include Taj, Taj Exotica, Taj Safari, Vivanta, Gateway Hotel and Ginger Hotel. This implies that this company is trying to focus on different customers through different brands. The whole sector received FDI capital of US$ 15 billion from April-June 2020.
Kovid had the largest impact on the tourism industry. During the COVID situation, the world reached 30% of its total capacity. It tells what proportion impact it had on the industry. The share price of Indian Hotels is Rs 126. It’s given negative 10% return to its investors within the last one year. The past one year has not been good for its investors. The capitalization of this company is Rs 15,000 crore. We’ll not discuss P/E ratio as many companies during this sector are making loss.
Major competitors of Indian hotels are EIH, Chalet Hotel, Mahindra Holiday and citrus tree Hotel.
Now let's discuss the subsequent company of Tata Sons. It originates from the telecommunications sector. Its name is Tata Communications. The core business of Tata Communications is 'Voice Solutions', 'Data and Manage Services'. Aside from this the corporate also provides data transmission services to the company sector. Thanks to this the corporate has many corporate clients like HDFC Bank and Maruti Suzuki.
Now allow us to discuss the foremost business highlights of this company. The business of this company is contact over 200 companies. There are over 12,000 employees during this company.
The share price of Tata Communications is Rs. 140. But the foremost interesting fact is that it's given 160% return to its investors. The capitalisation of this company is around Rs 30,000 crore. This company incorporates a P/E ratio of around 40. One minor downside here is that the debt on the corporate. The loan value on Tata Communications is over Rs 12,000 crore.
Whereas the equity value is negative because the company has incurred losses within the recent past. Now let's discuss the following company of Tata Sons. It’s a VSAT provider and its name is Nelco Limited. the total kind of VSAT is incredibly Small Aperture Terminal. Other businesses of this company include VSAT connectivity, SATCOM projects and integrated security and surveillance solutions. (for different companies). The complete style of this company is National Radio and Electronics. It’s called Nelco. This company was incorporated in 1940. A noteworthy fact about Nelco is that it's grown its sales with 12% CAGR within the last 5 years. This number is heavily owed on 51% CAGR growth in profit. The share price of Nelco is Rs 195. It’s given a negative 14% return to its investors within the last one year.
The capitalisation of this company is Rs 444 crores. From here you'll understand that the capitalisation of this company is incredibly less as compared to other Tata companies. The P/E ratio of this company is 33. While the industry P/E ratio is around 23.
The next company is Tata Investment Corporation. Because the name suggests, this company invests in numerous places like Equity, Debt (Listed/Unlisted- where they find value). This company earns its income by investing in numerous places. The corporate has investments in banking, cement, chemicals, fertilisers, power transmission and electricals, electronics and construction infrastructure sectors. The share price of this company is Rs 1021. The capitalization of the corporate is Rs 5,100 crore. The last one year return of this company is 27% positive for its investors. Here we will not speak about sales CAGR growth as profit will be more relevant here.
Profit CAGR growth has been negative 13% within the last 5 years. So this was today's video where I wanted to debate remaining Tata Sons companies.
We have tried to provide you information about companies that trade with Tata Sons as promoters within the exchange.
Warning: this can be for educational purposes only. Please do your own marketing research for any investment.