If you’re looking to do online stock market trading and want to get ahead of the game, then consider looking into Tata’s Top Picks for 2024.
Tata Group is one of India’s biggest business groups, and it has a lot of stocks that are worth keeping an eye on in the coming year.
From tech giants to financial institutions, the following five stocks are the ones to watch in 2024. Adding these stocks to your portfolio could be a great way to make it more diverse and improve your returns. Read on to learn more about these five top picks from Tata Group.
1. Tata Power Company Limited
As a trader, you may be familiar with Tata Power Company Limited, one of the power titans within the Tata Group and a major player in the Indian energy landscape.
This powerhouse fuels the nation by harnessing diverse energy sources, including coal, gas, hydro, and renewables.
Despite navigating through the stormy seas of regulatory shifts and intensifying rivalry in the Indian power sector, Tata Power Company Limited has been doubling down on honing operational efficiency and growing its green energy portfolio.
- Tata Power Share Price: ₹ 200+
- Market Cap: Around ₹ 657.76 billion
2. Tata Steel Limited
Another noteworthy company under the Tata umbrella is Tata Steel Limited, an Indian steel behemoth. Its portfolio of steel products – flat, long tubes, wires – enjoys global visibility, establishing the company as a principal steel supplier for the automotive, construction, and infrastructure sectors.
Facing a slackening demand and escalating competition in the Indian steel sector, Tata Steel Limited has embarked on an expedition to refine operational proficiency and widen its product arsenal.
The anticipated acquisition of Bhushan Steel is poised to amplify its production capability, consolidating its standing in the Indian steel market.
- Tata Steel Share Price : ₹ 102+
- Market Cap: Around ₹ 1279.53 billion
3. Tata Motors
Tata Motors, a recognised badge in the Indian automotive sector, is another constituent of the Tata Group. This automaker manufactures various vehicles ranging from cars, trucks, and buses to military equipment.
However, grappling with sluggish demand and increasing competition, Tata Motors has focused on refining its product line and extending its global footprint. Plus, its commitment to electric and eco-friendly vehicles may spearhead future growth.
The recently forged partnership with the Chinese carmaker Chery Automobile is set to enhance its penetration in the Chinese market, making Tata Motors a stock to observe in 2024.
- Tata Motors Share Price : ₹ 510+
- Market Cap: Around ₹ 1743.58 billion
4. Tata Consultancy Services (TCS)
In the realm of IT, Tata Consultancy Services (TCS) emerges as a promising trading & investment in the current climate. Over the years, it has delivered a respectable correction and boasts an appealing track record.
TCS’ average order book size exhibited an upward trend, moving from the US$6-7 billion range in FY 2021 to US$7-8 billion in FY 2022. Moreover, its revenue quality continues to scale up via higher-value engagements for lasting growth. With a robust RoCE of 54.9% and RoE of 43.6%, TCS underscores itself as a sturdy investment choice.
Reflecting on its 5-year revenue and profit CAGR, TCS has shown consistent growth of 10% and 8%, respectively. The company’s future profitability might see a boost due to improved utilisation, operations, and realisation, coupled with decreased turnover and subcontract costs.
- TCS Share Price: ₹ 3,200+
- Market Cap: Around ₹ 11792.57 billion
5. Tata Elxsi
Lastly, let’s take a look at Tata Elxsi, another branch of the Tata Group that offers design and technology services for product engineering across various sectors.
As of today, the company’s price-to-earnings (P/E) ratio rose to 62.17, indicating a premium trading status. However, the Price-to-Book ratio saw a drop from 30.44 in May 2022 to 25.72 in May 2023, signalling that the stock might now be undervalued against the company’s assets.
Its steady dividend payouts make Tata Elxsi an attractive proposition for investment. Over the past five years, the company has been able to maintain a healthy dividend payout, ranging between 28.54% to 81.21%, showing its commitment to sharing the rewards with shareholders while ensuring its fiscal health.
- Tata Elxsi Share Price: ₹ 7,000+
- Market Cap: Around ₹ 437.63 billion
Conclusion
Tata has a strong presence in a variety of industries, making it a reliable choice for you to diversify your portfolio.
With their focus on sustainability and innovation, their stocks have great potential for growth in the coming years. Keep an eye on these top 5 Tata picks in 2024 and beyond.
