Analysis of Listed Companies in Tamil Nadu

Tamil Nadu hosts a diverse range of industries and businesses, with over 250 listed companies. In this blog, we will delve into captivating statistics and insights about these companies.

While I have made every effort to provide comprehensive details about all the listed companies in Tamil Nadu, if anything may have been inadvertently overlooked, please don’t hesitate to inform me through the comments section of this article. Your feedback is invaluable in our pursuit of accurate and insightful information.

(Feature image reference: By Ravivg5 – Own work, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=21131445)

Hi, This is Venkatesh. I write on Personal Finance, Stock Investing, Productivity and Time Management. You will be interested to read more about me and the purpose of my website.

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Contents of this Blog

Background
Tamil Nadu Companies - What Data Says?
Industry Power Houses in Tamil Nadu
Conclusion

Background

Why undertake this study with a specific focus on companies in Tamil Nadu? There are two compelling reasons behind this endeavor:

Firstly, it all started with a conversation between a financial influencer and a close friend who were actively seeking a comprehensive list of companies originating from Coimbatore. This simple exchange ignited the idea to create an expansive database that would encompass all listed companies from across the entire state of Tamil Nadu.
Secondly, another friend embarked on a dedicated mission to compile a thorough and exhaustive list of small-cap companies situated within Tamil Nadu. His motivation stemmed from a desire to establish connections with the management of these companies and, in turn, make well-informed investment decisions. Remarkably, he not only embraced this quest but also took it a step further by independently curating his own list of small-cap gems.

It’s important to note that although this blog may seem like a quick and accessible 5 to 10-minute read, it’s underpinned by countless hours of diligent work dedicated to sourcing and presenting the intricate details that are shared in this and the next few blogs.

Tamil Nadu Companies - What Data Says?

Diverse Industrial Presence

Comprising a diverse range of over 250 companies, these entities operate within nearly 60 different industries, effectively illustrating the rich and diversified economic terrain of the state. It’s worth highlighting that the Finance, Textile, and Auto sectors emerge as prominent pillars, jointly accounting for over 40% of the total companies in the landscape.

Location

The location of these companies is primarily determined by the registered office or factory location. In cases where these locations were different, the factory location was considered. This aspect of the study offers a comprehensive view of the geographical distribution of businesses in the state.

Chennai emerges as the epicentre of corporate activity in Tamil Nadu. The bustling capital city houses a significant portion of these companies.
Following closely is Coimbatore, a city renowned for its industrial prowess, which also hosts a substantial number of listed companies, specifically on textiles.

Market Capitalization

I have deviated from the regular classification of Small, Mid and Large caps in this study. Instead, I have chosen these four levels of Market Caps.

Less than 100 crores
100 – 1000 Crores
1000 – 10000 Crores
Above 1000 Crores

While the majority of these companies have varying market capitalizations, a notable subset of 34 companies comprises the heavyweight players with a market capitalization exceeding 10,000 crores.

Profitability

For the analysis, we focused on the net profit figures from the previous year, with data sourced from www.screener.in. This examination yielded two intriguing findings:

1. A noteworthy revelation was that around 23% of the companies in the study did not report profitability.

2. Another interesting observation was the correlation between profitability and market capitalization. Specifically, only a mere 46% of companies exhibited profitability in the category of “Less than 100 Crores” in market cap. However, as we moved up the market cap scale, the percentage of profitable companies demonstrated a significant uptick. In “Above 10000 Crores” category, all companies were profitable. The below image has the full story.

Industry Power Houses in Tamil Nadu

These are groups or companies with multiple businesses. These businesses were in the form of multiple listed companies in the stock exchange. We will discuss these conglomerates in brief now and more in detail in future blogs.

Amalgamations Group

The Amalgamations seed was sown in 1938 by Shri. S. Anantharamakrishnan. The group has over 50 plants across India, predominantly at five locations in Southern India – Chennai, Hosur, Coimbatore, Madurai and Bengaluru. However, only two companies are listed entities.

TVS Group

The TVS Group, founded by T. V. Sundram Iyengar in 1911, boasts a rich legacy of over 110 years. The company’s journey began in Madurai, Tamil Nadu, where its first venture was launched. While TVS Group is primarily renowned for its presence in the automotive sector, it has strategically diversified into various industries to ensure sustainable growth.

Below is a list of the group’s listed companies.

Murugappa Group

Murugappa Group is an Indian conglomerate founded in 1900 headquartered in Chennai. The Group has a workforce of over 50,000 employees. The Group has presence in several segments including abrasives, auto components, bicycles, sugar, farm inputs, fertilizers, plantations, bioproducts and nutraceuticals.

RAMCO Group

In the year 1938, Mr. P A C Ramaswamy Raja setup the first spinning mill at Rajapalayam, which later became the focal point of the Ramco Group.

Lakshmi Group

The group is primarily into textile and the manufacture of textile machines. The companies part of the group are:

Rane Group

The group is primarily in Auto ancillary industry. The companies part of the group are:

Rane Holdings
Rane Madras
Rane Engine Valve
Rane Brake Lining

All the four companies have the same website, https://ranegroup.com/

Shriram Group

The group has a presence in industries across the finance sector covering NBFC, AMC and Insurance. They are into real estate as well. The companies part of the group are:

Shriram Asset Management Company Limited
Shriram City Union Finance
Shriram Transport Finance
Shriram Properties

Apart from the above groups, a few promoters have been successful to expand beyond one business. Two classic examples that I came across are:

Varadaraj family (or Elgi Group)

Gopal Ratnam family

Their multiple listed companies on stock exchanges reflect their commitment to growth, innovation, and excellence across a wide array of industries. In our upcoming blog, we’ll delve deeper into the stories, strategies, and impact of these and other remarkable conglomerates that continue to shape the Indian industrial landscape. Stay tuned for more insights about these conglomerates.

Conclusion

In Tamil Nadu, a vibrant tapestry of 250+ listed companies paints a dynamic picture of industrial activity. Industrial conglomerates like the TVS Group, Murugappa Group, Rane Group, Amalgamations Group, and many more have thrived with business across multiple industries. In the next blog, is the list of all 250+ companies.

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