Top Tata Group Stocks with Ambitious ₹12,000 Cr Capex Initiatives: Must-Watch Investments

Tata Group stocks

Tata Group, India's foremost conglomerate, solidified its dominance in the fiscal year 2022-23, amassing an impressive $150 billion in combined revenue (equivalent to INR 12 trillion). 

Their global footprint extends across 100 countries spanning six continents, underscoring their international reach. Notably, as of July 31, 2023, the Tata Group boasts 29 publicly traded firms, collectively commanding a remarkable market value of $300 billion (equivalent to INR 24 trillion).

Here are the 3 Tata Group Companies Set to Invest Up to Rs 12,000 Crores in Capital Expenditure

Tata Power Company LTD

Tata Power Company Ltd is at the forefront of revolutionizing the energy landscape, with a steadfast commitment to power generation, transmission, and distribution.

Pioneering sustainable practices, they're allocating a substantial Rs 12,000 crore in capex for Renewable and transmission & distribution (T&D) projects, embracing a green vision for the future.

With a robust renewable energy portfolio of 7 GW, including 3.9 GW operational and 2.7 GW in progress, Tata Power is actively transforming into a consumer-centric entity.

Their remarkable Q1FY24 results underscore this transformation, with a 5 percent YoY revenue growth, surging from Rs 14,495 crore to Rs 15,213 crore, and an astounding 880 percent net profit leap from Rs 80 crore to Rs 790 crore during the same period.

Tata Chemicals LTD

Tata Chemicals Ltd stands as a formidable player in the realm of manufacturing and exporting essential chemical products, encompassing soda ash, cement, salt, marine chemicals, and refined soda.

As the week drew to a close, Tata Chemicals Ltd witnessed its shares settle at Rs 1,084.70 per share, reflecting a modest 1.01 percent increase compared to the preceding closing price of Rs 1,086.15. The company's market capitalization currently stands at a substantial Rs 27,661 crores.

Tata Chemicals is poised for substantial growth, with a substantial allocation of Rs 8,000 crores earmarked for capital expenditures over the upcoming three years. This investment is primarily directed towards expanding soda ash capacity by an impressive 1 million tonnes (MT), thereby elevating its global capacity to an impressive 5.3 MT.

Furthermore, expansion plans include augmenting salt capacity with a 380-kilo tonne plant in the UK and Mithapur, India, boosting capacity to 2.3 MT and 1.8 MT, respectively.

In response to the burgeoning demand from the tire sector, Tata Chemicals is also gradually enhancing its specialty silica capacity to an impressive 50,000 KT.

The company's financial performance paints a positive picture, with revenue witnessing a 5.5 percent year-on-year surge, rising from Rs 3,995 crores in Q1FY23 to Rs 4,218 crores in Q1FY24. Although net profit experienced a 5 percent decline during the same period, moving from Rs 608 crores to Rs 578 crores, Tata Chemicals remains well-positioned for future growth and expansion.

Trent LTD

Trent Ltd, a leading name in the Indian retail landscape, boasts a diverse portfolio of department stores, hypermarkets, supermarkets, and specialty outlets, including renowned brands such as Zudio, Westside, Samoh, Zara, and more.

Closing at Rs 2,086.55 per share on Friday, Trent shares showed resilience with a marginal 0.07 percent dip from the previous closing price of Rs 2,087.75, securing a market capitalization of Rs 74,174 crores.

In FY2023, Trent impressively expanded its footprint with a net addition of 133 stores across various formats, including 14 Westside and 119 Zudio stores, bringing their total store count to over 550. For the upcoming fiscal year 2023-24, Trent has ambitious plans to launch 30 Westside and 200 new Zudio stores, with an estimated capital outlay of Rs. 800 crore.

Reflecting their robust growth trajectory, the company reported a substantial 45 percent YoY revenue surge, climbing from Rs 1,803 crore in Q1FY23 to Rs 2,628 crore in Q1FY24. 

Concurrently, their net profit soared by an impressive 75 percent, escalating from Rs 80 crore to Rs 140 crore during the same period.

Disclaimer: The investments and services offered by us may not be suitable for all investors. Investing in equities poses a risk of financial losses. If you have any doubts as to the merits of an investment, you should seek advice from an independent financial advisor.

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