InvestorQ : Why is the Tata Group going so aggressively after EVs and digital at this point?
Priyanka N made post

Why is the Tata Group going so aggressively after EVs and digital at this point?

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Neelam Naik answered.
4 months ago
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In the last 15 years, the Tata group has benefited immensely from the gains of TCS. It has always been among the 3 most valuable companies on the stock exchange and continues to be the pivot for Tata group. Here is why this is a challenge.

· Just look at top line revenues, and most of it comes from Tata Motors, Tata Steel and TCS. Others are much smaller in comparison.

· Turn to the profits, and TCS is head and shoulder above the rest. This quarter Tata Steel will make a big contribution but it has been volatile.

· Market cap is undoubtedly dominated by TCS followed by Titan, Tata Steel, TAMO and Tata Consumer. Out of 100 companies in the group, value is focused on just 5 names.

· Back in the 1990s, focus areas were software, steel, oil, telecom and automobiles. Software is the one area where it really made deep inroads, thanks to TCS.

· The telecom business is history, with only TCOM surviving and Tata Tele sold to Bharti. Oil never really took off, and Tata needs a good story for the next 20 years.

· That is where electrical vehicles (EV) and digital initiatives are projected as the next big stories for the group over the next 20-years.

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