The Tata Group, founded in 1868 by 29-year-old Jamsetji Nusserwanji Tata, began as a modest trading venture with an initial capital of just ₹21,000. Today, the conglomerate spans a vast array of industries, from salt to steel, with a market capitalization exceeding ₹33 lakh crore.
The late Rakesh Jhunjhunwala, one of India’s most respected investors, famously said, “The Tatas are blessed by God.”
Jhunjhunwala, who made a significant portion of his fortune through his investment in Titan (bought 6 crore shares of the company at just ₹3 in 2001 and held onto them for more than two decades). This investment delivered an extraordinary 83,250% return.
Investing in Tata Group entities, especially during times of turbulence, presents a compelling case. Let’s deep dive (not a recommendation to invest):
Tata Motors:
What went wrong?
-> Jaguar Range Rover sales dropped massively
-> The ambitious low-cost Nano car failed to capture the market
-> COVID-19 Impact
-> Demonetization & GST Fallout
-> Shrinking Domestic Market Share
Stock declined 89% from Rs. 600 to Rs. 63
Action taken
-> Tata turnaround plan
-> New models introduced and focus on hatchbacks, SUVs & EV
Revenue touched all time high of Rs. 4.4 lac crore in FY 2024 – growing by 25% CAGR in last 2 years
Stock appreciated from Rs. 63 to Rs. 1150
Titan:
What went wrong?
-> Lockout in Hosur factory
-> Low net profit margin
-> Low return on capital employed
Titan share was available around Rs. 3 in 2003
Action taken
-> Leveraged ‘Tata’ brand
-> Aggressive marketing of Tanishq, Skinn and Titan (watches)
Revenue touched all time high of Rs. Rs. 50,000 crore in FY 2024
Stock appreciated to Rs. 3,800 in 2024
Voltas:
What went wrong?
-> Intense competition from foreign brands
-> No advance technology
-> No customer loyalty
Stock price fell from Rs. 12 to Rs. 2.8 in 2001
Action taken
-> Invested 1% of revenue in training
-> Foreign collaborations
-> New product introductions
Revenue touched all time high of Rs. Rs. 12,000 crore in FY 2024
Stock touched all time high of Rs. 1946 in 2024
Trent:
What went wrong?
-> Intense competition from Pantaloon (2005-2006)
-> Low footfall
-> No Brand loyalty
The stock was available around Rs. 40 in 2008
Action taken
-> Launch of fast fashion brand Zudio
-> Restructuring of Westside
-> Close of loss making stores
Revenue touched all time high of Rs. Rs. 12,000 crore in FY 2024
Stock appreciated to Rs. 7,500 in 2024
Tata Elxsi:
What went wrong?
-> No growth in business
-> Recession in Japan (auto sector)
-> Wrong investments in movie VFX
The stock fell to Rs. 20 post doc com crises (2001)
Action taken
-> Focus on technology & AI
-> Focus on operating cash flows, EPS, and dividend
Revenue touched all time high of Rs. Rs. 3,500 crore in FY 2024
Stock appreciated crossed Rs. 9,000 in 2022
