Tata Group Surpassed the Economy of Pakistan - A Tale to Tell

According to a report by The Economic Times (ET), the combined market value of Tata Group companies has exceeded Pakistan's gross domestic product (GDP).

The report highlights that the listed companies within the conglomerate, spanning from salt to software sectors, have achieved remarkable returns in the stock market over the past year. As a result, their collective value now surpasses that of Pakistan's entire economy, which continues to grapple with high levels of debt and inflation.

The overall market capitalization of the Tata Group stands at approximately $365 billion, or more than Rs 30 trillion, exceeding Pakistan's GDP estimated by the International Monetary Fund (IMF) at roughly $341 billion.

TCS, the IT major, stands out as the crown jewel among Tata Group's listed businesses, boasting a market value of nearly Rs 15 trillion ($170 billion). This alone accounts for half the size of Pakistan's financially challenged economy, according to IMF estimates.

While all Tata Group firms have contributed to the conglomerate's overall market value growth, Tata Motors and Trent have made particularly significant contributions.

Tata Motors' shares surged by 110 percent in a year, while Trent recorded an impressive gain of 200 percent. Other stocks within the group, such as Tata Technologies, TRF, Benaras Hotels, Tata Investment Corporation, Tata Motors, Automobile Corporation of Goa, and Artson Engineering, have also performed well.

It's noteworthy that out of the conglomerate's approximately 25 listed companies, only Tata Chemicals experienced a five percent decline in the past year, as per ACE Equity data cited in the report.

However, the Tata Group extends beyond its listed entities, encompassing various unlisted companies like Tata Sons, Tata Capital, Tata Play, Tata Advanced Systems, and Air India. Including these businesses would significantly boost the conglomerate's total market capitalization. For instance, Tata Capital, reportedly planning its IPO next year, holds an unlisted market valuation of over Rs 2.7 trillion.

Meanwhile, Pakistan faces severe economic challenges, marked by its worst crisis in history. With $125 billion in external debt and liabilities, the country is under pressure to secure funds for upcoming external debt payments, commencing at $25 billion from July. Additionally, the impending conclusion of Pakistan's $3 billion IMF program next month exacerbates its financial woes.

In contrast, India's GDP, currently worth $3.7 trillion, dwarfs Pakistan's, standing about 11 times larger. India is on track to become the world's third-largest economy by FY28, with its current status being the fifth-largest globally.