Not Mukesh Ambani, not Adani, but Ratan Tata's group crosses USD 400 billion market cap, biggest contributors are...

In a startling turn of events, the Tata Group has shattered records, crossing the $400 billion mark in market valuation. The conglomerate’s meteoric rise has stunned analysts and investors alike, leaving many to wonder what’s behind this extraordinary leap.

On Friday, Tata Group reached a historic milestone, becoming the first Indian conglomerate to surpass a $400 billion market capitalisation. This impressive feat is largely credited to its flagship company, Tata Consultancy Services (TCS), and the automobile giant Tata Motors. With a market cap of $401 billion (₹33.6 lakh crore), the Tata Group has added a phenomenal $100 billion to its valuation in just one year.

At the heart of this surge is TCS, which alone accounts for $190 billion of the group’s total valuation. TCS shares hit an all-time high of ₹4,422.45 on Friday, a clear indicator of the company’s robust performance. TCS delivered a strong revenue beat and is poised to capture the upcycle.

Tata Motors, the second largest entity in the group, also contributed significantly. Its shares surged by 12% over the past few days, following an upgrade by Nomura. The foreign brokerage sees a substantial upside from Jaguar Land Rover (JLR), which could further boost Tata Motors' profit margins.

JP Morgan has noted that TCS’s revenue growth is impressive, particularly in the financial services and technology sectors. They have raised their revenue and earnings per share (EPS) projections for the company and maintained an "overweight" rating with a target price of ₹4,600. 

With TCS, Tata Motors, and other group companies like Tata Steel and Titan accounting for nearly 75% of the conglomerate’s valuation, the Tata Group has solidified its position at the forefront of Indian business. Employing over one million people and generating $165 billion in revenue for FY24, the group’s success far outstrips that of rivals such as Reliance and Adani. The combined valuation of India’s top three conglomerates now surpasses $884 billion, exceeding Spain’s entire market valuation.