As the Bombay Stock Exchange (BSE) Sensex cools down from the 70,000 mark touched yesterday, one of the biggest gainers this year in terms of market valuation among the Indian conglomerates is the Tata group, which added Rs 6.1 trillion, or 28.5 per cent, to the group companies’ total valuation to Rs 27.4 trillion since January 1 this year.
The construction and engineering major Larsen & Toubro (L&T), however, tops in terms of percentage gains as the company added an additional Rs 2.4 trillion, or 49.1 per cent, to its total market valuation in the year. With this, L&T group companies were the largest value creators for their shareholders at Rs 7.2 trillion in 2023 so far, per data sourced from Bloomberg and Capitaline.
The Tata group companies’ good performance in the stock market is attributed to rising sales of Tata Motors, Titan, and Tata Consultancy Services, which saw a significant gain in their share prices. L&T, on the other hand, along with its software services companies like LTIMindTree and L&T Finance Holdings, have seen significant growth in market value.
While Adani group companies lost Rs 5.5 billion, or 28 per cent, of market valuation since January this year, the Mukesh Ambani group companies gained 4.5 per cent of valuation to a total of Rs 18.4 trillion. Mukesh Ambani, Chair of Reliance Industries, continues to be the richest man in India, followed by Gautam Adani, Chair of the Adani group of companies.
The Adani group companies’ shares are in recovery mode, with massive gains in the last month, thus adding to Adani shareholders’ wealth. The Adani group companies’ rise in market valuation is due to a 47 per cent rise in their earnings before interest, tax, depreciation, and amortisation to Rs 43,688 crore. The group companies reported the highest-ever cash balances of Rs 45,895 crore at the end of September.