17/12/25, BIZnews

 

Eight of India's top 10 conglomerates by market value have delivered positive returns so far in 2025, even as benchmark indices witnessed sharp volatility amid foreign investor outflows, stretched valuations, weaker earnings, and global headwinds.

The combined market capitalisation of the top 10 conglomerates, which together account for about 28 percent of the total market value of all listed companies, rose around 8 percent to Rs130 lakh crore as of December 15, according to data from ACE Equities.

This performance was broadly in line with that of all BSE-listed companies, whose aggregate mcap increased 6.5 percent to Rs469.70 lakh crore as of December 15, compared with Rs441.96 lakh crore as of December 31, 2024.

With half of the month remaining, frontline indices outperformed broader markets. The Sensex and Nifty were up around 9 percent and 10 percent, respectively, while the BSE MidCap index edged up 0.2 percent and the BSE SmallCap index declined by over 7 percent.

Within the top 10 business groups, Tata Group and ITC Group recorded declines. The Tata Group's total mcap across 24 listed companies fell nearly 8.2 percent, largely due to a 21 percent drop in Tata Consultancy Services. Other group companies such as Trent, Nelco, Tata Technologies, Tejas Networks, Orient Hotels, Tata Chemicals and Tata Consumer Products also their market caps decline during the year.

In the ITC Group, the combined market value of ITC Ltd and ITC Hotels Ltd fell by around 15 percent. The group's performance was weighed down by pressures experienced by the agri business, higher tobacco costs and intense competition, which impacted ITC's operating margins.

Bharti Group emerged as the biggest gainer, with its overall mcap rising nearly 30 percent. The gains were led by Bharti Airtel, whose stock surged over 31 percent during the year. Other group companies, including Bharti Hexacom and Indus Towers, rose over 21 percent and 15 percent, respectively.

Reliance Industries Ltd ranked as the second-largest gainer in terms of mcap in 2025. The group's combined market value rose 24.4 percent to Rs23.14 lakh crore as of December 15. Reliance Industries' stock advanced 25 percent during the year, supported by improved performance across its energy, retail and telecom businesses. The rally strengthened from October, when the stock gained more than 14 percent, adding to the 12 percent rise recorded between January and September.

Aditya Birla Group and Bajaj Group followed as the next best performers, with both groups posting gains of around 22 percent during the year. In both cases, overall gains were driven by a limited number of stocks. In the Aditya Birla Group, only four stocks advanced out of 10, while in the Bajaj Group, four stocks gained out of a total of 12.

Within the Aditya Birla Group, Vodafone Idea was the top performer, surging 128 percent so far in 2025. Aditya Birla Capital and Hindalco Industries rose 105 percent and 42 percent, respectively. On the downside, Aditya Birla Fashion declined 68 percent, Aditya Birla Money fell 43 percent and Aditya Birla Fashion Retail dropped 33 percent. Century Enka declined 28 percent, while Aditya Birla Sun Life fell 10 percent.

In the Bajaj Group, Bajaj Finserv and Bajaj Finance were the biggest contributors, rising around 50 percent and 38 percent, respectively. Maharashtra Scooters gained 47 percent and Bajaj Consumer Care rose 22 percent.

Among the laggards, Bajaj Projects declined 38 percent, followed by Bajaj Electricals and Bajaj Hindusthan Sugar, which fell 37 percent and 35 percent, respectively. Hercules Investments declined 25 percent and Bajaj Housing Finance fell 22 percent, while Bajaj Auto gained marginally by 2 percent during the year.

Other large conglomerates recorded moderate gains. L&T Group advanced nearly 17 percent Mahindra Group rose about 15 percent, while Adani Group gained around 10 percent. OP Jindal Group posted a modest rise of 5 percent.

Among mid-sized conglomerates sharp volatility seen during the year. Among gainers, Muthoot Group emerged as the top gainer, rising nearly 79 percent, followed by Hero Group and GMR Group, which gained 41 percent and 33 percent, respectively.

In contrast, BK Birla Group was the worst performer, declining 62 percent, followed by ADAG Group with a fall of 32 percent and Birla SK Group, which lost over 31 percent.

Sachin Jasuja, Head of Equities and Founding Partner at Centricity WealthTech said BK Birla and SK Birla groups have significant exposure to textiles and cement, with the textile sector facing pressure in 2025 due to higher tariffs, export volume declines and pricing stress. Companies linked to the ADAG Group continued to remain under pressure amid regulatory and investigative overhangs from past issues.

CK Birla Group declined 31 percent during the year, BC Jindal Group fell 23 percent, Yash Birla Group slipped 21 percent, Kirloskar Group declined 16 percent, RP–Sanjiv Goenka Group fell 15 percent, KK Birla Group declined 14 percent and MP Birla Group dropped 12 percent. Godrej Group ended the year down 9 percent.

Jasuja said groups with broader exposure to industrial goods were weighed down by weaker market sentiment and a correction in small- and mid-cap stocks, while Kirloskar Group companies were impacted by the broader risk-off sentiment despite healthy business fundamentals.

source: Network18