The valuation of Tata group companies is more than the GDP of Pakistan


- TCS led and Tata Motors-Trent surges market value of group to $365 billion : Pakistan's economy is around $341 billion

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, Tata Group's investor wealth has been increasing rapidly. The value of Tata Group companies has increased to such an extent that it has overtaken the economy of Pakistan as a whole.

According to International Monetary Fund data, Pakistan's economy is around $341 billion, while on the other hand, Tata Group's market cap is around $365 billion. Tata Consultancy Services, the main company of Tata with a market cap of 15 lakh crore rupees i.e. 170 billion dollars, alone is equal to half of 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, then the Tata Group's valuation will increase by another 160-170 billion dollars. If you have to make an estimate, the estimated valuation of Tata Capital, which is preparing for an IPO next year, is currently 2.7 lakh crore rupees.

The recent rise in market value of the Tata conglomerate is attributed to Tata Motors and Trent. Shares of Tata Motors have gained 110 percent in a year, while Trent has gained 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, the economy of Pakistan is facing a severe financial crisis. Neighboring Pakistan's GDP grew at 6.1 percent in FY2022 and 5.8 percent in FY2021 but is now projected to decline in FY2023. Floods caused billions of dollars in damage in Pakistan. It has foreign debt and liabilities of $125 billion.

In July, Pakistan has to repay 25 billion dollars in foreign debt and the IMF also has Rs. 300 crore program is ending in March. Pakistan's foreign exchange reserves are at a rock bottom level of around $8 billion. Along with this, its debt to GDP ratio has reached 70 percent, which can raise questions on its credit rating.

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

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