Tata Group is a leading business conglomerate. With a strong presence in different industries in the sector in India, like steel production, IT, automobiles, chemicals, and for generations, the Tata group has worked through its various subsidiaries. Out of all the designated companies under the Tata group, Tata Power and Tata Steel serve as the two prominent contributors to its growing market value. Both companies with strong financial performance are considered the best organisations that investors can select for their diversified investment portfolio.
The following article explores why Tata Power and Tata Steel must be included in the investment portfolio of investors looking for long-term wealth creation:
Tata Power
Serving as one of the leading power generation companies in India, Tata Power is a key player in the renewable energy sector of India. With a total power generation capacity of more than 14 GW, the company has been able to improve its power generation capabilities through consistent innovation and investment in power generation solutions. The company is, through its innovative capabilities, making contributions towards the development of solar, wind, and hybrid energy solutions for its clean energy initiative.
The company has strong performance, a stable business model, continuous investment in infrastructure, and sustainable energy development efforts, making it a futuristic company that aims to stay for a long period. The Tata Power share price has grown multifold, delivering returns at exponential rate. The company’s stable revenue model and strong support from both public and private institutions serve as a testament to its long-term growth potential. Investors can therefore consider investing in Tata Power shares to experience considerable growth in the years to come.
Tata Steel
Considered to be one of the largest steel producers and distributors in India as well as abroad, Tata Steel is known for its strong market presence. The company is a major contributor in the steel production sector in India with clients both in India as well as foreign nations. With a wide network of steel-producing plants all over the world, Tata Steel aims to expand further with investment in sustainable steel-producing technology as well. With a priority towards the development of carbon-neutral and environmentally friendly steel producing methods, Tata Steel is poised to grow at a rapid pace through its consistent efforts and infrastructure development.
The Tata Steel share price, currently trading at ₹142.8, has offered returns of more than 423% making it one of the best performing stocks on the stock market. Moreover the major asset management companies and analysts are positive on the continuous growth pattern of the company making it the perfect choice for investors with a long-term investment vision.
Conclusion
Tata stocks like Tata Power and Tata Steel are known for their internal strength, strong backing, proper management, and exponential growth patterns. With stability and innovation, Tata companies can maintain an upward growth trajectory. Investors, however, must opt for proper research and analysis before selecting the Tata stocks and including them in a diversified portfolio for a long-term investment horizon.
