This year has been tumultuous for Indian equity benchmarks. The domestic indices, which were gaining momentum on hopes of a post-Covid era, shivered again in February-end after Russia invaded Ukraine, denting investor sentiments. The central banks, across the globe, raising interest rates to tame inflation, also turned the markets jittery.
Due to this uncertainty, stocks — which are considered fundamentally strong — also faced the heat. The benchmark BSE Sensex and broader NSE Nifty fell more than 10 per cent, each, in 2022.
In sync, Tata Group shares have also been volatile. Some of the group companies have delivered gains while others have delivered losses. In addition, some companies of the salt-to-software conglomerate are in the process of a merger. Recently, Tata Group said it would merge seven of its metal companies into Tata Steel to drive efficiencies and reduce costs.
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The Tata Steel Board approved the amalgamation of subsidiaries — Tata Steel Long Products, Tata Metaliks, The Tinplate Company of India, TRF Ltd, Indian Steel & Wire Products, Tata Steel Mining and S&T Mining into itself.
Currently, some of the group’s stocks are off their 52-week highs, tracking a weaker trend in equities amid global slowdown fears. Few of the group’s stocks tumbled today on reports that the company may reduce the number of its listed entities from 29 to 15.
Here’s a look at how some of Tata Group stocks have fared so far in 2022:
Indian Hotels Company
Taking yesterday’s closing price into consideration, shares of Tata Group-owned Indian Hotels Company have surged more than 77 per cent this year. The stock had hit a 52-week high of Rs 337.30. Indian Hotels owns Taj, Vivanta, and Ginger.
The company aims to build a portfolio of 300 hotels, clock 33 per cent operating profit margin with 35 per cent share contribution from new businesses and management fees by the financial year 2025-26 (FY26).
Tata Elxsi
Tata Elxsi has surged more than 50 per cent in 2022. The stock had touched a 52-week high of Rs 10,760.40 on August 17. Over the last year, the company recorded spectacular growth in sales, profitability, and client acquisitions across all important divisions.
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Tata Elxsi focuses on design thinking and application of digital technologies in high-growth verticals that are expected to see strong growth driven by rising research & development spends.
Trent
Trent, which operates the retail business under its flagship brand Westside, climbed nearly 36 per cent this year.
Tata Teleservices
In terms of losses, Tata Teleservices (Maharashtra) fell more than 51 per cent this year. This was due to a much-awaited correction as the stock had given massive returns over the past despite any change in its business outlook.
Tata Communications
The stock declined a little over 19 per cent in 2022 so far. The company has increased its capital expenditure plans for the financial year 2023 (FY23) from $250 million to $300-325 million.
Meanwhile, Tata Group stocks traded on a lower note today. Tata Motors and Tata Chemical plunged more than 6 per cent, respectively, as investors weighed on the impact of Tata Group reportedly planning to reduce the number of listed entities.