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Each business in the Tata fold, they said, has its own dynamics and a qualified leadership team that can provide stability to the companies they lead.
Reports of Chandra steeping down as chairman ahead of Tata Son’s August 18 AGM may be a non-event and at best see a knee-jerk reaction, as institutions of this size are able to attract talent easily, said G Chokkalingam, founder and head of research at Equinomics Research.
“I don’t think under his leadership all Tata group companies have done phenomenally well. So to that extent, the related stocks may not react much in case he quits and is not reappointed. Chandra has not been able to lift the performance of all the businesses. Challenges remain for a lot of individual companies, such as TCS, Tata Steel, Tata Motors Passenger Vehicles, etc. Among the lot, I like the businesses that are domestic economy-focused such as Tata Motors CV and Tata Capital. For Titan, the current valuation captures most of the positives,” he said.
Current term
Chandra’s current term as chairman runs until February 2027, but the continuation hinges on his reappointment as a director of Tata Sons. He joined the Tata group in 1987 and became chief executive officer of TCS in 2009 before taking over as Tata Sons chairman in 2017.
The Tata Sons’ board deferred a decision on Chandra’s reappointment as chairman in February after Noel Tata raised reservations over the performance of some of the group’s newer businesses.
At the bourses, meanwhile, the performance of Tata group stocks has been mixed thus far in calendar year 2026 (CY26).
In comparison, the Nifty 50 index has lost nearly 6 per cent thus far in CY26.
This is not going to be a smooth transition in case Chandra quits and is not re-elected, believes U R Bhat, co-founder & director, Alphaniti Fintech, as it appears there is no obvious candidate to succeed him right now. Air India acquisition, Bhat suggests, was probably a potential mistake, but things may turn around in the long run.
It (Air India buy) was also more of a sentimental decision, Bhat believes, than a purely commercial proposition.
“On the whole, Chandra has done very well and appears to be the right man for the job. However, I don’t expect Tata group stocks to react dramatically if he were to step down. He is not hands-on with the operating companies. Tata Sons is essentially the promoter and exercises its rights by voting at AGMs, but it does not take day-to-day management decisions at these companies. There could certainly be some sentimental impact, but I don’t think it would be anything dramatic,” Bhat said.
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