Synopsis:
Two Tata Group stocks that earned more than their market capitalization during the 2025 financial year.
In this article, we will dive into two of the leading market leaders in their respective segments operating under the giant Tata brand. Below are the two mentioned companies fulfilling the requirements.
1. Tata Motors
Tata Motors Ltd is a global automotive company that designs and manufactures a wide range of vehicles, including passenger cars, SUVs, commercial vehicles, electric vehicles, and defense vehicles. It also provides vehicle financing, IT, and insurance services. Its brands include Tata, Jaguar, Land Rover, Nexon, Harrier, and more, serving customers across India and international markets.
The company reported a revenue of Rs 1,19,503 crore in Q4 FY25, up by 0.4 percent from its Q4 FY24 revenue of Rs 1,19,033 crore. However, the company reported a net profit decline of 51 percent to Rs 8,556 crore in Q4 FY25 from Rs 17,528 crore in Q4 FY24.
Tata Motors, commanding a market capitalisation of Rs 2,40,434 crore, reported a robust FY25 revenue of Rs 4,39,695 crore in FY25, which is about 1.83 times its market value, showcasing the strength of its operations relative to its valuation.
2. Tata Steel
Tata Steel Limited stands out as a prominent steel manufacturer, not just in India but also on the global stage. They offer an impressive variety of products, including rebars, wire rods, steel coils, tubes, and alloy steels. Beyond just steel, the company also delivers construction and engineering solutions. Their products cater to a diverse range of industries, such as construction, automotive, energy, and consumer goods.
The company reported a revenue of Rs 53,178 crore in Q1 FY26, down by 3 percent from its Q1 FY25 revenue of Rs 54,771 crore. However, the company reported a net profit increase of 118 percent to Rs 2,007 crore in Q1 FY26 from Rs 919 crore in Q1 FY25.
Tata Steel, commanding a market capitalisation of Rs 1,98,114 crore, recorded a strong FY25 revenue of Rs 2,18,543 crore in FY25, which is around 1.10 times its market value, reflecting its solid business scale compared to its current valuation.
While strong revenues can certainly showcase a company’s size and performance, they don’t automatically indicate that the stock is undervalued. It’s important to consider other factors like profitability, debt levels, and potential for future growth. Investors should always conduct their own research before making any investment choices.
Written by Satyajeet Mukherjee
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