Valuation of Tata Group companies is more than Pakistan’s GDP


Ahmedabad: Tata group companies are also leaders in giving returns to investors. Be it TCS or Tata Motors, share price appreciation also gives returns to investors through buyback-bonuses. In the last two-three years, the wealth of investors of Tata Group has been increasing rapidly. The value of Tata group companies has increased so much that it has left the entire economy of Pakistan behind.

According to International Monetary Fund data, Pakistan’s economy is worth around $341 billion, while on the other hand, the market cap of Tata Group is around $365 billion. Tata Consultancy Services, Tata’s flagship company with a market cap of Rs 15 lakh crore i.e. $170 billion, is alone equal to half the economy of Pakistan.

If Tata’s unlisted companies like Tata Sons, Tata Capital, Tata Play, Tata Advanced Systems and the airlines business of Air India and Vistara are counted, the valuation of the Tata group will increase by $ 160-170 billion. If we estimate, the estimated valuation of Tata Capital, which is preparing to launch an IPO next year, is currently Rs 2.7 lakh crore.

The recent rise in the market value of Tata Group is attributed to Tata Motors and Trent. Shares of Tata Motors have increased by 110 percent in a year, while shares of Trent have increased by 200 percent. Apart from this, stocks like Tata Technologies, TRF, Banaras Hotels, Tata Investment Corporation, Tata Motors, Automobile Corporation of Goa and Artson Engineering have performed well.

On the other hand, Pakistan’s economy is facing a serious financial crisis. The GDP of neighboring country Pakistan grew at the rate of 6.1 percent in FY 2022 and 5.8 percent in FY 2021, but now it is expected to decline in FY 2023. Floods caused losses worth billions of dollars in Pakistan. It has foreign debt and liabilities of $125 billion.

In July, Pakistan has to repay foreign debt of 25 billion dollars and IMF also has to repay 25 billion dollars. The Rs 300 crore program is ending in March. Pakistan’s foreign exchange reserves are at a low of around $8 billion. Along with this, its debt to GDP ratio has reached 70 percent, due to which questions may be raised on its credit rating.

Apart from this, if we talk about the total GDP of India, then on the contrary, India’s GDP value is 11 times more than that of Pakistan at 3.7 trillion dollars. India is poised to become the world’s third largest economy by 2028 from its current fifth position.



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