Cyrus Mistry exits from Tata Sons, but several group stocks posted humongous returns in his tenure

In a major shakeup at one of the country’s biggest private sector conglomerate, Tata Sons board today asked Cyrus Mistry to step down as chairman of Tata Sons, and instead re-inducted former chief Ratan Tata as interim chairman. [caption id=“attachment_2266146” align=“alignleft” width=“380”]  Tata Group chairman Cyrus Mistry[/caption] “Tata group has taken a very tough decision..may be Cyrus Mistry’s way of functioning did not gel with the group’s overall decision makers. Cyrus had taken some tough decision in the past like hiving of some non-profitable businesses and setting goal towards making the group a more profitable venture,” said A K Prabhakar, head of research, IDBI Capital Market. Also, the group in the past was known for creating huge employment in the country, but Mistry seemed to have focussed more on returning to profitability mode, and in the process slashed jobs in various of their group companies. Slashing of jobs at Tata group firms was unheard of in the past. We think names like Noel Tata would once again emerge as top contender for Tata chairman’s post," said Prabhakar. Even as Cyrus Mistry relinquishes his position as the chairman of Tata Sons, here is an interesting facts about how Tata group’s listed shares performed in last three years since Mistry took over the reins in late December 2012. Shares of Tata Metaliks vaulted 587 percent since 1 January 2013 till date, while the company’s market cap accelerated by a whopping 932 percent to Rs 1,090 crore.  Similarly, Tata Elxsi share zoomed 477 percent to Rs 1,342.65 from Rs 232.55 with market cap surging 3,457 percent during the period. Further, shares of Voltas, Tata Communications, Tata Sponge Iron, Indian Hotels and Tata Motors (shares with differential voting rights) rocketed over 100-269 percent during the period under review. Despite the broad-based rally in last three years, shares of Tata Steel, Tata Coffee, Tayo Rolls, Tata Power and Tata Teleservices (Maharashtra) bucked the trend as investors turned cautious on these counters. These stocks lost 3-47 percent during the period, as some of the companies consistently delivered losses in their earnings. Data contributed by Kishor Kadam