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Tatas drive back as most-valued group

business Updated: Jun 19, 2011 23:19 IST
HT Correspondent
HT Correspondent
Hindustan Times
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The Ambani name has been known for creating wealth for investors in India for years, but now it seems the Tata Group is a better bet for investors.

The salt-to-software conglomerate has strengthened its dominance at the stock markets and is now well above the combined market capitalisation of the companies of both Mukesh and Anil Ambani, whose market value has been eroded amidst controversies.

As on Friday, Mukesh Ambani-led RIL group had a market capitalisation of Rs285,093 crore, while Anil Ambani-led ADA Group had a market cap of Rs82,014 crore — a combined market cap of Rs367,108 crore. The Tata Group’s market capitalisation, however, stood at Rs440,000 crore.

The stock market has been trading flat for several months, but controversies surrounding the companies of the two Ambani brothers has resulted in a significant loss in their market capitalisations. Tata Group companies, on the other hand, have only grown.

RIL continues to be the single largest company in terms of market capitalisation (Rs284,263 crore) but, it has lost 9% of its value in the last six trading sessions amidst selling pressure in the wake of a CAG report questioned undue favour to RIL by government departments.

On RIL, experts advise investors to keep close eye on news. “If serious investigation starts on this issue, it can be cause of concern for the company,” said SP Tulsian, an independent analyst. “Investors should keep close watch on the news related to this issue.”

ADAG, on the other hand, has been linked to the 2G spectrum scam; three of its senior officials are in jail. In the last one year, the group’s market wealth has plunged by over Rs60,000 crore. The RIL group’s valuation has fallen by about Rs73,000 crore.

The Tata Group has however grown by more than Rs100,000 crore in the same period.

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