Guess what? Motherson Sumi creates more wealth than 8 Tata group cos

It’s a trivia that may perhaps surprise even keen followers of the stock market: a cursory glance at the market capitalization of eight of the Tata Group’s smallest listed firms combined is smaller than that of automotive products’ manufacturer Motherson Sumi. [caption id=“attachment_40709” align=“aligncenter” width=“380”]  Reuters Image. Factory of the Samvardhana Motherson Group[/caption] According to latest trading values, the total market cap of eight Tata firms: Tata Metaliks, Tata Sponge Iron, Tata Teleservices Maharastra, Tata Coffee, Tata Elxsi, Indian Hotels, Tata Global Beverages and Tata Chemicals amounts to a total of Rs 37,487 crore. That’s lesser than Motherson Sumi’s total market cap of Rs 39,165 crore. (See infographic below.)

8 TATA FIRMS MCAP (IN CR) VS MOTHERSON SUMI | Create infographics

Another discerning aspect of the above point is the earnings capability of these firms and the dependence of the Tata Group on others: cumulatively, these firms notched up a loss of Rs 394 crore on revenues of Rs 30,111 crore in fiscal year 2014 (thanks largely to the losses at Tata Chemicals and Tata Tele), compared to Rs 1,096 crore net profit notched up by Motherson Sumi on sales of Rs 31,042 crore. The above statistic also highlights the skewness in terms of the wealth creation abilities of the salt-to-software conglomerate, with only three firms (Tata Communications at Rs 12,132 crore, Tata Power at Rs 21,406 crore and Tata Steel at Rs 38,114 crore) having notched up sizeable valuations while only two others (Tata Motors Rs 1.66 lakh crore and TCS at Rs 4.86 lakh crore) can qualify as giants. Even among the larger Tata firms, TCS’ valuation is bigger than the combined value of all the remaining listed group firms (Rs 2.75 lakh crore).

tata firms mcap | Create infographics