(Source- Goodreturns)
Founded in 1868 by Jamsetji Tata, the Tata Group has grown into one of India’s most significant conglomerates, with a diverse portfolio of 30 companies spanning 10 different sectors. Based in India, Tata Group’s operations extend across six continents and over 100 countries. In the fiscal year 2023-24, the collective revenue of Tata Companies surpassed $165 billion. As of March 31, 2024, the market capitalization of its 26 publicly listed companies exceeded $365 billion.
Comparing Tata Motors and Tata Steel: Long-term Investment Prospects
So far this year, Tata Group and Steel have delivered similar returns. Tata has appreciated by over 28 percent, while Tata Steel has risen by over 26 percent.
In the first six months of 2024, both stocks showed positive returns in five of the six months. Tata Motors experienced a 7 percent increase in June after a decline of 8.4 percent in May. It posted positive returns in the first four months of the year, with gains of 1.5 percent in April, 4.5 percent in March, 7.4 percent in February, and 13.4 percent in January. Conversely, Tata Steel saw a 4 percent rise in June, marking its fifth consecutive month of gains. It grew by 1.33 percent in May, 6 percent in April, 10.6 percent in March, and 3.6 percent in February, despite a 2.6 percent loss in January 2024.
Over the past year, Tata Company has outperformed Tata Steel, yielding a 67 percent return compared to Tata Steel’s 56 percent rise. Both stocks have reached record highs this year, driven by strong market sentiment and investor confidence. Tata Company peaked at ₹1,065.60 in March 2024, after hitting a 52-week low of ₹588.50 in July 2023. Currently trading at ₹999, it is just 6 percent below its peak, marking a 70 percent increase from its yearly low.
Similarly, Tata Steel achieved a record high of ₹184.60 last month and is currently trading at ₹176.25, only 4.5 percent below its peak. This marks a significant rise of over 58 percent from its 52-week low of ₹111.3 in July 2023.
Long-term Performance
Over the long term, Tata Company has proven to be the better performer. Over the past three years, The company has soared by over 216 percent, whereas Tata Steel has gained 51 percent.
In conclusion, while both Tata Company and Tata Steel have shown strong performance, Tata Motors has demonstrated superior growth and resilience over both the short and long term. For investors seeking long-term prospects, the company appears to be the more promising option between the two.
