The Economic Times stated that the GDP of pakistan has been eclipsed by the total market value of the Tata Group enterprises. The article emphasised how the listed businesses of the Salt-to-Software conglomerate had produced outstanding returns on the stock market in only one year, and it further stated that the total worth of these businesses now exceeds the value of Pakistan's economy, which is nevertheless beset by high levels of debt and inflation.
 
The research states that the market capitalization of the Tata Group is over $365 billion, or more than Rs 30 lakh crore. This exceeds the GDP of pakistan, which the IMF estimates to be around $341 billion. TCS, an IT company, is the most valuable of all the listed companies in the Tata Group, with a market valuation of around Rs 15 lakh crore, or $170 billion. Based on estimates from the IMF, tcs alone represents half of Pakistan's heavily indebted and cash-strapped economy.
 
Although all of the Tata Group's businesses have helped to drive up the conglomerate's overall market value, Tata Motors and Trent have had multibagger returns.
 
In less than a year, Trent's stock has increased by an astounding 200 percent, while Tata Motors' has increased by 110 percent. Furthermore, equities like Tata Technologies, TRF, Beneras Hotels, Tata Investment Corporation, Tata Motors, Automobile Corporation of Goa, and Artson Engineering have all performed well.
 
Remarkably, just one of the Tata Group's at least twenty-five listed companies—Tata Chemicals—has seen a five percent annual decline, according per ACE Equity statistics cited in the ET story.
 
However, these are only the conglomerate's listed businesses. The Tata Group includes a number of unlisted businesses, such as Tata Sons, Tata capital, Tata Play, Tata Advanced Systems, and air India.
 
If these companies are taken into account, the Tata Group's overall market capitalization would increase significantly. For background, Tata capital is valued at around Rs 2.7 lakh crore on the unlisted market. It is alleged that the company intends to initiate its initial public offering (IPO) next year.
 
Even while the group's combined valuation easily makes it the largest conglomerate in terms of market capitalization, it's important to remember that it is professionally managed, has no individual promoter, and is mostly owned by philanthropic trusts. It should be mentioned that Ratan Tata's ownership of Tata Sons is less than 1%.
 
PAKISTAN's ECONOMIC CRISIS
It's no secret that following a string of failures in FY23, pakistan has been experiencing its worst economic crisis ever.
 
With $125 billion in foreign debt and obligations, the nation is under pressure to raise the $25 billion in external debt payments that are scheduled to be made starting in July.
 
To compound its financial difficulties, Pakistan's $3 billion IMF programme is scheduled to end next month.
 
Pakistan's foreign exchange reserves, which are now around $8 billion, mean that the country can only pay for necessities for two months.

Credit rating agencies are also concerned about the sustainability of interest payments, which might account for half of the government's revenue this year, given that the country's debt-to-GDP ratio has risen beyond 70%.
 
By comparison, India's GDP, valued at $3.7 trillion, is around 11 times larger than Pakistan's and is expected to rise to the third rank in the world's economies by FY28. india currently has the world's fifth-largest economy.
 
 

 
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G GOWTHAM

19/02/2024 05:22 PM