Tata Group Stocks: 10 Biggest Gainers of FY24

In the investment world, where fortunes can rise and fall with the tide, few conglomerates have consistently stood out as a beacon of stability and growth like the Tata Group. With a rich 155-year history, it continues to be a goldmine for investors.

This past financial year was no different, with the combined market capitalisation of Tata stocks (excluding Tata Tech) skyrocketing by Rs 9.1 trillion (tn), a staggering 45% increase.

Dalal Street's love for Tata stocks reached new heights in FY24, with a staggering seven companies transforming into multibaggers. On average, Tata stocks delivered a mind-blowing 85% return throughout the financial year.

Now, let's uncover the specific Tata Group stocks within the conglomerate that truly stood out.

#1 Tata Investment

Leading the list is Tata Investment.

The company is a non-banking finance company (NBFC) registered with RBI, and it is engaged in long-term investments in listed and unlisted shares, mutual funds, and debt instruments.

Over the past year, Tata Investment has demonstrated exceptional growth, with its stock price surging from approximately Rs 1,746 per share to Rs 6,242 per share, marking an impressive gain of 257%.

The announcement aligns with reports indicating that the conglomerate is considering multiple initial public offerings (IPOs) within the next two to three years.

Companies whose IPOs could be in the pipeline are Tata Capital, Tata Autocomp Systems, Tata Passenger Electric Mobility, BigBasket, Tata Digital, Tata Electronics, Tata Housing, and Tata Batteries.

Another significant driver behind the rise in Tata Investment's share price is its robust financial performance.

In FY23, Tata Investment Corporation continued to impress, recording a revenue of Rs 2.8 bn, marking a solid 9% growth compared to FY22.

The net profit for the year also exhibited substantial growth, jumping by 17% to Rs 2.5 bn.

The company's diversified sources of revenue, including dividend income (Rs 1.7 bn), interest income (Rs 380 m), and net gains on fair value changes (Rs 660 m), contributed significantly to its total operating revenue in the recent fiscal year.

As an investment company, Tata Investment maintains high-profit margins, evident from its remarkable PAT margin of 91% for FY23.

Tata Investment Corporation is almost debt-free and has a steady promoter holding of 73.4%

For more details, check out the Tata Investment Corporation fact sheet and quarterly results.

#2 Automobile Corporation of Goa

Second on the list is the Automobile Corporation of Goa.

The company manufactures sheet metal components, assemblies and bus coaches at its factories. It is a supplier of pressings and assemblies to Tata Motors. Tata Motors controls a 47% stake in the company.

ACGL is a part of Tata Motors' electric bus and hybrid bus programme. A large portion of what the company does comes from the Tata Motors bus business, and it makes buses to suit the company's domestic and international bus requirements.

In the past year, the shares of the company have rallied 201% from Rs 717 to Rs 2,163 in March 2024.

This can be attributed to the company producing electric buses for the ever-growing electric vehicle segment. The company has a capacity of around 9,000 vehicles per year, and current capacity utilisation is 70%.

With electric buses having a significantly large penetration in State Transport Undertakings, which is showing an increasing trend, ACGL is gearing up to upgrade its manufacturing facility and engineering capability for manufacturing future models of buses, including electric buses.

Its line-up includes new models of EV buses and a prototype of an electric-powered double-decker bus.

Further, the company gained optimism stems from the belief that the listing of Tata Sons will unlock value.

ACGL and TICL don't directly hold stakes in Tata Sons. However, ACGL is promoted by Tata Motors, which holds about a 3% stake in Tata Sons.

For more details, see the Automobile Corporation of Goa company fact sheet and quarterly results.

#3 Trent

Third on the list is Trent.

Part of the Tata Group, Trent is engaged in the retailing of apparel, footwear, accessories, toys, and games.

It operates over 780 stores under various retail concepts such as Westside, Zudio, Landmark, and Star across 155 cities in India.

In the past year, the stock has risen around 187% from Rs 1,375 to Rs 3,948.

This remarkable growth can be credited to robust demand and rapid expansion, which have facilitated the company's impressive revenue growth at a compounded annual growth rate (CAGR) of 26.3% over the last five years. Moreover, the net profit has also demonstrated substantial advancement, achieving a CAGR of 32.9% during the same period.

The company plans to invest around Rs 8 bn in capex to expand its operations and increase its physical stores across all retail concepts across the country.

This, along with the high demand for apparel and footwear, drives the company's performance in the medium term.

New concepts in ethnic wear and innerwear may keep the revenue trajectory higher for longer.

Further, Trent achieved another milestone in December by becoming the fifth listed Tata Group company to surpass a market capitalisation of Rs 1 tn.

Trent is probably the only retailer in the country to compete with a completely private-label portfolio. Trent's brands are not sold on any other e-commerce sites, except Tata platforms.

For more details, see the Trent company fact sheet and quarterly results.

#4 Benares Hotels

Fourth on the list is Benares Hotels.

Benares Hotels is a subsidiary of the Indian Hotels Company. It operates four hotels in India, of which two are in the name of Taj, the world's strongest hotel brand.

Over the past year, Benares Hotels stock has demonstrated impressive growth, soaring approximately 167% from Rs 3,247 to Rs 8,685 in March 2024.

This can be attributed to the company achieving record-breaking financial success, thanks to Taj IHC's renowned brand name which is leading in revenue per available room (RevPAR).

Now, RevPAR might sound like a fancy term, but it's a measure to understand how well a hotel business is doing. As the Taj Ganges and Taj Nadesar Palace are a part of the Taj hotel portfolio, they enjoy high occupancy rates, which benefit Benares Hotel.

Further, the rally can be attributed to an uptick in travel tourism. Year-end came with a vacation mood as individuals often planned mini getaways way in time. Hotel and airline tickets were booked months in advance for the holiday season.

It was no secret that luxurious 5-star hotels, particularly those within the Taj portfolio of hotels, were in high demand during this period, boosting the profitability of its hotel businesses.

In line with the consistent increase in demand and high occupancies, Benares Hotels is focusing on growth.

In its annual report, the management mentioned that Taj Ganges will add a 100-room tower with larger rooms and take the total inventory to 230 rooms.

For more details, see the Benares Hotels company fact sheet and quarterly results.

#5 TRF

Fifth on the list is TRF.

TRF, formerly known as Tata-Robins-Fraser, was incorporated in 1962.

The company services core industries like power, mining, coal, fertilisers, ports, etc.

Since its inception, TRFL has specialised in manufacturing advanced systems for conveying, stacking, blending, reclaiming and processing of bulk raw materials. TRFL also undertakes turnkey contracts for total systems, bulk material handling plants.

TRF shares have delivered returns of over 152% in the past 12 months from March 2024.

This rally was on the back of TRF calling off a merger with Tata Steel two days before a court-convened meeting of shareholders was scheduled to approve the scheme of amalgamation.

The board of TRF, where the promoter Tata Steel holds a 34.1% stake, on 6 February decided not to proceed with the merger.

In concurrence with the decision of TRF Limited, the Tata Steel board also decided to withdraw the scheme, which was announced on 22 September 2022, as part of the consolidation of nine group companies.

The board called off the merger in light of its business performance.

Over the past three years, TRF's revenue demonstrated robust growth, achieving a Compound Annual Growth Rate (CAGR) of 27.9%. The company achieved profitability in 2023, marking a significant recovery after two consecutive years of losses and indicating an enhanced financial standing.

Looking ahead, TRF is committed to sustaining its positive financial performance by embarking on a trajectory of business expansion, emphasising operational efficiency, and contemplating strategic investments in technology.

For more details, see the TRF company fact sheet and quarterly results.

#6 Tata Motors.

Sixth on the list is Tata Motors.

Tata Motors Limited is a leading global automobile manufacturer with a portfolio that covers a wide range of cars, SUVs, buses, trucks, pickups, and defence vehicles.

It's a US$ 34 bn organisation and a leading global automobile manufacturing company.

Tata Motors is one of India's largest OEMs, offering an extensive range of integrated, smart and e-mobility solutions.

In the past year, Tata Motors has witnessed significant stock growth, with its shares surging approximately 136% from Rs 420 to Rs 996 as of March 2024.

The rally can be attributed to Tata Motors seeking to split its passenger and commercial vehicle businesses into two listed companies.

The CV (commercial vehicle) business and related investments will be housed in one entity, while the other will include passenger cars, electric vehicles, and Jaguar Land Rover.

The demerger proposal, which will be presented to the board of directors in the coming months and subject to necessary regulatory and shareholder approvals, will be completed in 12-15 months.

The shares of the company will be split in a 1:1 ratio.

Shareholders of Tata Motors will continue to have an identical shareholding in both the listed entities, the filing stated, and it'll be business as usual post-demerger.

Tata Motors has lined up US$ 2 bn to be invested by 2026 to launch 10 new EVs, including the Curvv, Harrier EV, Sierra EV, and the Avinya.

In addition, the company is setting up an ecosystem that will build everything from batteries and charging stations to financing vehicles and finally putting them on the road. No other automaker in India can currently counter that proposition.

For more details, see the Tata Motors company fact sheet and quarterly results.

#7 Artson Engineering

Seventh on the list is Artson Engineering.

The company is engaged in the business of design, engineering, procurement and construction for the oil & gas and hydrocarbon industry.

It manufactures bulk liquid storage tanks, various kinds of heat exchangers, pressure vessels, columns & process equipment, etc.

Artson's strong linkages with its parent company Tata Projects have helped it secure orders and grow its revenue over the years.

In the past year, the shares of the company have rallied 108% from Rs 68 to Rs 140 in March 2024.

Currently, Artson Engineering is embarking on a drive to upgrade its manufacturing facilities to increase its market share and retain its competitive advantage.

Artson Engineering has taken a premise on leave and a license for setting up a unit for enhancing its fabrication/manufacturing capacity with 1000 MT per month at Umred, Nagpur Unit. The investment is approx Rs 15 m.

The company is building a new 7-acre facility at Parli, which is less than 50 km from the upcoming Navi Mumbai Airport and less than 70 km from the JNPT port.

This proximity to Mumbai will give the company the flexibility to address demand from the Western zone with a lower cost of transportation and the added advantage of seaport proximity.

For more details, see the Artson Engineering company fact sheet and quarterly results.

#8 Tata Power

Eighth on the list is Tata Power.

Tata Power has transformed into India's undisputed energy powerhouse. Its grip extends across the electricity value chain, including generation, transmission and distribution.

Over the past year, Tata Power stock has demonstrated impressive growth, soaring approximately 107% from Rs 190 to Rs 394 in March 2024.

This can be attributed to its strong plans.

Looking ahead, Tata Power aims to become the frontrunner in India's clean energy revolution.

It is investing heavily towards this transition, building an expansive EV infrastructure and setting up EV charging stations across the country.

The company is funding its ambitious plans via external borrowings, making it one of the top 5 heavily indebted companies.

Further, the company has undertaken effective steps to deleverage its balance sheet, visible from a drop in debt to equity ratio.

Moreover, a large part of the company's total debt is long-term, due for re-payment only after 2-3 years. This gives their clean energy projects time to come onstream and generate robust cash flows.

For more details, see the Tata Power company fact sheet and quarterly results.

#9 Automotive Stampings and Assemblies

Nineth on the list is Automotive Stampings and Assemblies.

The auto ancillary firm mainly manufactures sheet-metal stampings, welded assemblies, and modules for passenger cars and commercial vehicles, largely for Tata Motors. These products account for more than 95% of the total revenue.

The product range includes body-in-white (BIW) structural panels, skin panels, fuel tanks, rear twist beams, oil sumps & suspension.

Apart from Tata Motors, Automotive Stampings & Assemblies (ASAL) sells its products to top automobile companies such as General Motors India, Fiat India, Piaggio Vehicles, Ashok Leyland, JCB, Tata Hitachi, & MG Motors.

In the past year, the shares of the company have rallied 94% from Rs 296 to Rs 574 in March 2024.

This rally can be attributed to the company commencing commercial production at its new manufacturing plant in Jamshedpur, Jharkhand.

The company's stellar performance was on the back of strong Q3 results.

The company's total income from operations grew to Rs 2.2 bn in the three months ending December 2023.

During the three months ended December 2023, the company had posted a net profit of Rs 47.3 m from Rs Rs 20.4 m a year back.

Going forward, its revenue growth will be driven by growth in automotive demand.

For more details about the company, check out Automotive Stampings' factsheet and quarterly results.

#10 The Indian Hotels Company

Last on the list is the Indian Hotels Company.

The Indian Hotels Company is primarily engaged in the business of owning, operating & managing hotels, palaces and resorts.

The company operates its hotels under four main brands catering to different segments viz. luxury Taj, upscale/ upper upscale Vivanta/ Seleqtions and midscale/lean luxury Ginger segments.

In the past one year, the stock has risen around 82% from Rs 324 to Rs 591.

This can be attributed to thousands of people flocking to multiple cities and staying at local places near the stadium, providing suitable accommodation for the IPL season.

Within the hotels sector, the Indian Hotel Company has a firm grasp on the market and the homegrown Tata brand of course helps... so Indian Hotels could be a possible beneficiary of the IPL 2024 season.

Further, on 7 August 2023, the company signed an agreement with Ambuja Neotia Group for an addition to its luxury line in West Bengal.

The new hotel, called Taj Ganga Kutir Resort & Spa, will be located in Raichak, within the eastern Indian state.

It will have 59 rooms, including 12 suites, and will offer a range of amenities and facilities, including a spa, infinity pool, and fine dining restaurant.

The hotel is expected to open in 2024.

For more details, see the Indian Hotels company fact sheet and quarterly results.

Conclusion

Going forward, it has been announced by Tata Sons Chairman N Chandrasekaran that the conglomerate is set to transition to 70 per cent green energy by 2030. This ambitious commitment underscores the Tata Group's dedication to sustainability and environmental responsibility.

Also, moving forward, the group plans to unleash a staggering 10 additional companies onto the stock exchanges.

This aggressive push aligns perfectly with the Tata Group's ambitions in new-age sectors like digital, retail, semiconductors, and electric vehicle batteries.

The conglomerate's commitment to emerging industries is exemplified by its ambitious investment plans, originally slated at US$ 90 billion (bn) by 2027 but now expected to surpass US$ 120 bn shortly.

However, as an investor, you must do your due diligence before investing in any company.

Assessing a company's fundamental strength is key to understanding its long-term potential.

For more, here is a compiled list of Tata Group stocks. It will help you analyse the fundamentals, compare its financials to its peers and make better decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...