This Tata group company is the largest automobile company in India!
Tata Motors' market capitalization now stands at Rs 3.14 lakh crore, surpassing Maruti Suzuki's market cap of Rs 3.13 lakh crore.
In a significant turn of events, Tata Motors Ltd. has reclaimed its position as India's most valuable automaker, surpassing Maruti Suzuki India Ltd. This notable shift comes on the back of Tata Motors' impressive performance, marked by a 2.12 per cent surge in its shares. The company's commendable feat includes recording profits for the fourth consecutive quarter, marking a stark contrast to the losses faced since the start of 2021.
A Financial Overview
Tata Motors' resurgence in the Indian auto market is underscored by its stock's extraordinary performance. The company's shares rallied by 9.5 per cent in the last five days, leading up to its December quarter earnings announcement on February 2.
Notably, Tata Motors stands as the only Nifty 50 stock to double in CY 2023, delivering returns exceeding 100 per cent. This performance significantly outshines both the Nifty Auto and the broader Nifty, which yielded returns of 47.34 per cent and 19.85 per cent, respectively, during the same period
Sr.No
|
Company Name
|
CY 2023 Returns (per cent)
|
January 2024 Returns
(per cent)
|
1
|
Maruti Suzuki India Ltd.
|
22.57
|
-3.16
|
2
|
Tata Motors Ltd.
|
101.17
|
8.70
|
3
|
Tata Motors Ltd DVR Ordinary
|
152.63
|
8.96
|
Market Cap Battle: Tata Motors vs. Maruti Suzuki
Tata Motors' market capitalization now stands at Rs 3.14 lakh crore, surpassing Maruti Suzuki's market cap of Rs 3.13 lakh crore. This elevation in market cap reflects investor confidence in Tata Motors' strategic initiatives and robust financial performance.
Tata Motors' Strategic Advantage: Electric Vehicles and SUVs
A key factor contributing to Tata Motors' success lies in the shifting consumer preference towards SUVs over small hatchbacks. Tata Motors strategically capitalized on this trend, securing a substantial share in the passenger vehicle market by offering diverse SUV options. Notably, Tata Motors is a leader in the domestic electric vehicle segment, selling the most electric cars in the country, while Maruti is yet to enter this space.
A recent rally in Tata Motors' stock could be triggered by the announcement of a 0.7 per cent price hike for its passenger vehicles, including electric vehicles, effective from February 1, 2024. The company's dominance in the commercial vehicle segment, boasting a market share of 35.46 per cent as of December 2023, further contributes to its overall financial strength.
DVR Shares and Differential Voting Rights: A Unique Element
The market cap triumph of Tata Motors also includes the Differential Voting Rights (DVR) shares. These shares, permitted to be issued with distinct voting and dividend rights, offer lower voting rights compared to ordinary shares. The combined market cap of Tata Motors and Tata Motors DVR Ltd now stands at Rs 3.14 lakh crore, solidifying the company's leading position in the Indian auto sector.
JLR's Wholesales and Global Electric Vehicle Transition
Tata Motors' success is not confined to the domestic market, as its subsidiary, Jaguar Land Rover (JLR), reported a 27 per cent uptick in wholesales for the quarter ended December 30, 2023. Globally, JLR is investing £15 billion over the next five years to transition to electric vehicles (EVs). This commitment to EVs aligns with Tata Motors' vision, aiming for 50 per cent of its wholesales to be electric by 2030.
Conclusion
In conclusion, Tata Motors' recent achievements exemplify a remarkable turnaround and strategic resilience. Surpassing Maruti Suzuki in market capitalization, doubling its stock value in CY 2023, and leading the electric vehicle revolution, Tata Motors has solidified its position as India's leading auto company. The 2023 budgetary boost, coupled with Tata Motors' strategic decisions and global endeavors, sets the stage for a continued success story in the evolving landscape of the Indian automotive industry.
Disclaimer: The article is for informational purposes only and not investment advice.
DSIJ’s 'multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.
Related articles
-
Stocks from this Gujarat-based business group outperform Tata group stocks, surging over 500 per cent, both turned multibagger- Check if you hold them!
-
200 per cent returns and FIIs increase stake: Rakesh Jhunjhunwala’s multibagger stock announces demerger into two separate companies!
-
Rakesh Jhunjhunwala and retail investors gained Rs 2,30,46,12,44,496 in Tata Group's multibagger stock; while LIC also holds 129,210,523 shares of the company!
-
Rs 17,643 crore order book: Back-to-back 52-week highs in this multibagger power stock as the company partners with Tata Motors Ltd for solar project in Pune!
-
Rs 17,643 crore order book: This multibagger power company partners with Tata Motors Ltd to develop a 12 MWp solar project at its Pune manufacturing facility!
-
Rs 17,643 crore order book: This multibagger power company signs PPA for 9 MWp on campus solar plant with Tata Motors Ltd!
-
Heavy buying: Ace investor Rakesh Jhunjhunwala’s portfolio stock hits a fresh 52-week high!
-
Rakesh Jhunjhunwala's Multibagger automobile stock hits 52-week high on outstanding results; declares stellar dividend!
-
From Titan to Tata Motors: This Rakesh Jhunjhunwala stock hits a fresh 52-week high delivering 500 per cent returns!
-
Overnight Digest: Stocks to keep an eye on May 09!
-
Overnight Digest: Stocks to keep an eye on April 21!
-
This automobile company will invest EURO 15 billion in its expansion and upgradation of the electric vehicle plant!
-
Overnight Digest: Stocks to keep an eye on April 11!
-
Multibagger Auto Sector stock rallied more than 21 per cent in few sessions only; Average daily volume is around 2 million
-
Shares below Rs 100: Only buyers were seen in these stocks on March 20
-
These low-price stocks were locked in the upper circuit today!
-
Overnight Digest: Stocks to keep an eye on February 21!
-
Stocks to watch: These small-cap stocks will be in focus on Monday!
-
Overnight Digest: Stocks to keep an eye on January 30!
-
Stocks to watch: These small-cap stocks will be in focus on Wednesday!