Wealth Creation Showdown: Tata Group vs Murugappa Group

This long-standing legacy and adaptability to changing market dynamics have positioned both Tata Group and Murugappa Group as consistent value-creators for investors. Abhishek Wani examines how the two groups have contributed to wealth creation and democratisation—two critical benchmarks for evaluating the success and impact of legacy business houses 

The Tata Group and the Murugappa Group are two of the most influential and respected business houses in India, with legacies dating back over a century. These conglomerates have played a pivotal role in shaping India’s industrial and economic landscape while creating substantial wealth for their shareholders. Their ability to withstand and thrive through historical and economic challenges—including the Great Depression, two World Wars, the Gulf War, the Cold War, the 2008 global financial crisis, and the corona virus pandemic— underscores their resilience, strategic foresight, and strong leadership. 

This long-standing legacy and adaptability to changing market dynamics have positioned both Tata Group and Murugappa Group as consistent value-creators for the investors. This article examines how the two groups have contributed to wealthcreation and the democratisation of wealth—two critical benchmarks for evaluating the success and impact of legacy business houses. While wealth-creation reflects financial growth and market capitalisation, the democratisation of wealth measures how this growth translates into benefits for a broader shareholder base. Over the last five years, both groups have demonstrated significant gains in market capitalisation and shareholder participation. 

About Tata Group
The Tata Group, founded by Jamshedji Tata in 1868, began as a trading firm in Mumbai and has since grown into a global powerhouse with operations spanning over 100 countries. It currently has 24 actively traded listed companies in India, operating across sectors such as information technology, steel, automobiles, power, hospitality and chemicals. The Tata Group is known for its strong brand equity, operational efficiency, and commitment to corporate social responsibility. Under the leadership of visionary figures such as JRD Tata, Ratan Tata, and, currently, Natarajan Chandrasekaran, the group has consistently adapted to market changes and delivered longterm shareholder value. 

Tata Consultancy Services (TCS), one of the group’s flagship companies, is a global leader in IT services and a major contributor to the group’s market value. Tata Motors, which acquired Jaguar Land Rover (JLR) in 2008, has emerged as a strong player in the global automotive market, particularly with its strategic pivot toward electric vehicles (EVs). Titan Company and Tata Steel have established themselves as dominant players in the jewellery and steel industries, respectively. Over the last five years, the Tata Group’s listed companies have added substantial market capitalisation. The group’s youngest listed company is Tata Technologies, which went public in November 2023. 

About Murugappa Group
The Murugappa Group, founded in 1900 by Dewan Bahadur A M Murugappa Chettiar in Chennai, initially focused on moneylending and banking before diversifying into manufacturing, agriculture, engineering, and financial services. The group’s conservative approach to capital allocation and its focus on operational excellence have been the key drivers of its success. Today, the Murugappa Group operates through nine listed companies, including CG Power and Industrial Solutions, Cholamandalam Investment and Finance, Coromandel International, Tube Investments of India, and E.I.D. Parry. 

group’s growth trajectory. The acquisition of CG Power and Industrial Solutions by Tube Investments of India in 2020 is one of the group’s biggest turnaround stories, while Cholamandalam Investment and Finance has become a leading player in the non-banking financial sector (NBFC). Coromandel International holds a dominant position in the agrochemicals market, supported by strong domestic demand and favourable government policies. 

Tata Group versus Murugappa Group
A look at how these two groups have created and democratised wealth in the preceding five years: 

Wealth Creation - Over the last five years, the Tata Group’s market capitalisation has increased from ₹9,98,145 crore in 2020 to ₹26,99,327 crore in 2025, reflecting 2.7x growth and a compounded annual growth rate (CAGR) of 22.01 per cent. This steady rise reflects the group’s consistent business expansion across IT, automobiles, power, and consumer products. TCS remains the largest value driver, adding ₹6,03,517 crore in market capitalisation—a 1.9x increase. Tata Motors has been a standout performer, increasing its market capitalisation from ₹27,183 crore in 2020 to ₹2,46,069 crore in 2025—a 9.1x jump—driven by the company’s strategic pivot to EVs and improved JLR performance. 

Tata Power recorded a 10.4x rise in market capitalisation, increasing from ₹10,954 crore to ₹1,13,770 crore, supported by aggressive expansion into renewable energy. Titan Company’s market capitalisation more than doubled to ₹2,67,947 crore, driven by strong demand in the jewellery and watch segments. Trent, Tata Group’s organised retail arm, surged 8.4x in market capitalisation to ₹1,78,279 crore, reflecting increased consumer spending and retail expansion. In comparison, the Murugappa Group exhibited even more impressive growth, increasing its market capitalisation from ₹63,577 crore in 2020 to ₹3,89,220 crore in 2025—a 6.1x rise and a robust CAGR of 43.67 per cent. This surge reflects the group’s ability to capitalise on highgrowth segments such as financial services, agri-business and engineering. 

CG Power and Industrial Solution’s market capitalisation soared from ₹309 crore in 2020 to ₹92,955 crore in 2025—a staggering 300.8x increase—driven by operational efficiency and deleveraging after its acquisition by Tube Investments of India. Cholamandalam Investment and Finance posted a 6.1x increase in market capitalisation to₹1,21,992 crore, fuelled by scalable growth in lending and asset management. Tube Investments of India also delivered strong performance, increasing its market capitalisation by 6.2x to ₹64,452 crore, supported by growth in engineering and bicycle manufacturing. 

Democratisation of Wealth - The Tata Group’s shareholder base surged from 9,98,145 in 2020 to 2,69,81,770 in 2025—a 4.7x increase. This reflects broader investor confidence and growing retail participation. Tata Power’s shareholder base rose from 3,45,934 to 46,40,371—a 13.4x jump—highlighting strong retail interest in renewable energy. Tata Motors saw a 5.9x rise in shareholder count, increasing from 1.09 million to 6.46 million, driven by its electric vehicle (EV) strategy. However, the market capitalisation per shareholder for the Tata Group declined from ₹17,40,137 in 2020 to ₹10,00,426 in 2025, indicating that while the overall market capitalisation increased, the rise in shareholders diluted per capita wealth. 

This reflects a broader wealth democratisation strategy aimed at increasing retail participation. In contrast, the Murugappa Group’s shareholder base increased from 8,13,360 in 2020 to 23,28,504 in 2025—a 1.7x increase. Despite the smaller rise in shareholders, the market capitalisation per shareholder increased from ₹7,81,655 to ₹42,86,638, indicating concentrated wealth creation. This suggests that the Murugappa Group has focused on delivering high returns to a relatively smaller, more concentrated shareholder base. 

Market cap growth and shareholder additions of Tata Group’s 24 listed companies over the past five years:

Market cap growth and shareholder additions of Murugappa Group’s 9 listed companies over the past five years:

**Note – Market Cap data as of March 12, 2025, for ‘Market-Cap (2025)’ and March 12, 2020, for ‘Market-Cap (2020)’. Shareholder data as of Q3FY25 for ‘Shareholders (2025)’ and Q3FY20 for ‘Shareholders (2020)’.

Which Group’s Stocks are Fairly Valued? 

As regards the Tata Group, Tata Motors seems undervalued, trading at a PE ratio of 7.58x versus the industry average of 19x and a five-year median PE of 16.4x, with a price-to-sales ratio of 0.54x and a PEG ratio of 0.08x, indicating strong growth potential. Automobile Corporation of Goa appears fairly valued with a PE of 18.4x (industry average of 24.5x), a PEG ratio of 1.76, and healthy ROCE and ROE of 18.7 per cent and 18.6 per cent, respectively. Tata Communications also looks reasonably valued with a PE of 38.5x (versus an industry average of 35.5x), a PEG ratio of 0.53, and impressive ROCE of 17.6 per cent and ROE of 65.2 per cent. 

Within the Murugappa Group, Carborundum Universal appears fairly valued with a PE of 40.6x, below the industry average of 45.6x and the five-year median of 47.6x. Its net debt-free status, along with ROCE of 20.1 per cent and ROE of 15.6 per cent, supports this valuation. The management’s revised sales growth guidance of 9–11 per cent for FY25 further strengthens its outlook. Shanthi Gears is also fairly valued with a PE of 34.5x (below the five-year median of 48.5x), backed by strong ROCE of 33.5 per cent and ROE of 25 per cent, highlighting operational efficiency and consistent profitability. 

Conclusion

The Tata Group and Murugappa Group have delivered impressive value-creation through distinct strategies. The Tata Group’s focus on democratising wealth has expanded its retail shareholder base significantly, offering stability and diversified growth. However, this broader participation has resulted in relatively lower per-shareholder returns. Conversely, the Murugappa Group’s disciplined financial approach has driven higher per-shareholder wealth, appealing to investors seeking concentrated returns. While Tata Group’s stocks provide a safer, long-term investment option with steady growth, Murugappa Group’s stocks present higher return potential for those willing to embrace a more focused investment strategy. Both groups stand out as resilient wealth-creators, but investors must weigh their preferences for stability versus growth when choosing between them.