What is Corporate Group?
Group means more than one Company. If there are more than one Company from same promoter or Corporate body then we call it Corporate Group. For example every one of us have heard about TATA.
TATA has more than one companies. So it can be called Corporate Group and Companies from this Companies are called part of it. For example TATA has Companies like Tata Global selling you Tea and Tata Chemicals selling you Salt.
In this article we will see major Corporate Group Companies listed on NSE. If you are new to stock market this post will help you get familiar with Top Corporate Groups and Companies present in the Group.
It will also help you know performance of these Groups over the years. So you can make your initial stock tracking list based on the information shared below or to know more about Companies listed on stock exchanges.
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Why we should know about Corporate Groups?
Knowledge about different Corporate Groups is very important for retail investors. This gives you starting point to get list of Companies you want to track.
You can also know performance of different Corporate Group Companies or different areas a Company is operating in.
Corporate Governance is more important than Financials of a Company in long run. A Company involved in wrong practices will ultimately die off. A struggling Company with good corporate Governance will pay you in long term.
By Knowing a Company is from Top Corporate Group you can be rest assured about Management Pedigree and Quality of Company. For example if you found out that a Company is from TATA Group or HDFC Group then immediately you have positive impact about that Company.
Instead of worrying about Management quality and transparency you can focus on exploring Growth prospectus and valuation of the Company. So knowing Companies from Top houses makes it easier for investors.
Which Groups are listed?
I will list most of the Corporate Groups below. This will give you idea of Groups which are performing and Groups which are not doing well. It is good to know Companies doing good as well as Companies not doing good. So that you can include one in your track list and avoid other from your list.
I will also write detailed article about each group. This will give you an idea about performance of these groups over the years. Also I will explore each Company in the Group to get more insight about them.