Tata Group Stocks Fared Well Under Mistry

Tata Group stocks have seen mixed fortunes, but by and large the group has delivered on shareholder returns under the stewardship of Mistry.

The NSE's Tata Group Index, which tracks 25 stocks listed under the group umbrella, increased 72 percent since December 2012. This depicts a growth of 16-odd percent in compounded terms.

Among the heavyweights in the index, Tata Consultancy Services, the group's flagship has been the star contributor to the growth in the index rising nearly 92 percent since December 2012. The stock surged from Rs 1269 to Rs 2433. Tata Consultancy has the highest weight of nearly 58 percent on the index, and has been the biggest contributor to the group's fortunes in the last four years.

Among the other flagships of the Tata Group, Tata Motors has also delivered a solid growth with its stock rising 80.7 percent. Tata Motors acquisition JLR has been driving the company's stock higher on strong overseas demand for luxury sedans.

Tata Steel, however has remained flat during the period at levels of Rs 425. Tata Steel has been hit by a fall in demand for steel for much of the last four years, while Tata Steel UK scouts for buyers for one of its divisions in Europe.

The Tata Group index was launched by the NSE on December 16, 2015 with the base date as April 1, 2005. The index is driven by the total market capitalisation method. Tata Motors and Tata Steel have weights of 18.5 and 4.3 on the index.

Among the other stalwarts of the group, jewellery company Titan has put up a decent performance under Mistry, returning 34 percent in nearly four years despite facing some issues on the domestic jewellery retailing front.

Among its other flagships, Tata Power has dipped 22 percent since December 2012.
Between them the top five companies of the Tata group constitute nearly 85 percent of the weights of the index.