Tata Group market cap stands at $365 billion; Is more than Pakistan’s economy

The Tata Group is referred to as a salt-to-software conglomerate and it has produced good returns in the stock market in the last one year. The overall market capitalization of the Tata Group is around $365 billion or over Rs 30 lakh crore and this figure is higher than the GDP of Pakistan, reported The Economic Times. The GDP of Pakistan which is estimated to be around $341billion estimated the IMF.

For those who are unknown, Pakistan is currently struggling through high levels of debt and Inflation. When it comes to the business of Tata Group, IT major TCS has a market share of almost $170 billion.

Performance of Tata Group

Even though all the firms of Tata Group have provided for the overall growth of the market value, Tata Motors and Trent were the most significant contributors of the overall market value. The shares of Tata Motors have increased by 110 percent in a year while those of Trent has increased by a whopping 200 percent. Well performing stocks of Tata Group were from Tata Technologies, Tata Motors, Automobile Corporation of Goa, TRF, Benaras Hotels, Tata Investment Corporation, and Artson Engineering.

According to the ACE Equity data cited in the report, just one out of more than 20 companies listed on stock exchanges has underperformed. Tata Chemicals has fallen by five percent in a year. Other than the listed companies, the Tata Group includes unlisted companies like Tata Sons, Tata Capital, Tata Play, Tata Advanced Systems, and Air India.

Economic Crisis of Pakistan

Pakistan is experiencing its worst economic crisis and has $125 billion in external debt and liabilities. It is also under great pressure to secure funds for upcoming debt payments of $25 billion. To add to its miseries, the $3 billion IMF program for Pakistan will be ending next month. As the country has foreign exchange reserves of around $8 billion, its ability to cover essential imports is limited to just two months.

Meanwhile, the debt-to-GDP ratio of Pakistan has surpassed 70 percent and has raised concerns among credit rating agencies about the sustainability of interest payments.