Trust and Ethics: Why Tata Group Stocks Like TCS and Tata Steel Stand Strong in Any Market, Says Mayuresh Joshi

Mayuresh Joshi, Head of Equity at Marketsmith India, emphasized that Tata Group companies are highly respected for their professional management and strong ethical standards. He explained that Tata companies are known for being well-run and trustworthy, with no corporate governance issues, which is why they are so valued by the market.

Performance of IT Stocks: Large Cap vs. Mid Cap

When discussing IT stocks, Joshi pointed out the difference between large-cap and mid-cap companies. He mentioned that although TCS (Tata Consultancy Services) didn’t meet earnings expectations, there could be a recovery in earnings in the next financial year. The real growth for IT companies, especially mid-cap ones, is expected to show by the fourth quarter.

Mid-cap IT companies have done better than large-cap companies in terms of revenue growth, profits, and new orders. Despite high valuations, mid-cap IT stocks may continue to outperform in the near future, especially if global political issues lead investors to take a more defensive stance.

Tata Group’s Leadership Transition

When asked about the recent appointment of Noel Tata as the chairman of Tata Trust, Joshi explained that this change in leadership is expected to be smooth, given the group’s history of professionalism and ethical governance. He said investors can trust Tata companies because of their strong leadership and corporate standards.

Joshi also highlighted that while many Tata stocks are solid investments, some, like Tata Steel, may be influenced by the ups and downs of the commodity cycle. Stocks like Tata Chemicals are also impacted by specific market factors. However, for the most part, Tata Group companies are managed ethically and professionally, and investors should feel confident in holding these stocks.

Real Estate Sector Outlook

When discussing the real estate sector, Joshi noted that we are in the fourth year of a six- to seven-year real estate cycle. While the excitement surrounding real estate has decreased, Joshi believes developers are making smart choices by focusing on asset-light models, especially in metro and Tier 1 and Tier 2 cities.

These models reduce debt and help balance sheets stay strong. Although new launches have slowed, Joshi remains cautiously optimistic about the sector’s future growth, though some cities are showing signs of inventory buildup.