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Last Updated on: 22 February, 2025
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 500470 | NSE: TATASTEEL

Tata Steel Ltd: Share Price Analysis, Intrinsic Value & Fundamentals (2025)

Share Price and Basic Stock Data

Last Updated: February 22, 2025, 3:06 am

Market Cap 1,75,718 Cr.
Current Price 141
High / Low 185/123
Stock P/E62.1
Book Value 72.2
Dividend Yield2.56 %
ROCE7.02 %
ROE6.55 %
Face Value 1.00
PEG Ratio-2.23

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Tata Steel Ltd

Competitors of Tata Steel Ltd

Stock Name ⇩Market Cap ⇩Current Price ⇩High / Low ⇩Stock P/E ⇩Book Value ⇩Dividend Yield ⇩ROCE ⇩ROE ⇩Face Value ⇩
Incredible Industries Ltd 150 Cr. 32.1 63.6/29.215.4 29.10.00 %9.09 %4.61 % 10.0
Eastcoast Steel Ltd 10.0 Cr. 18.6 30.2/18.4 34.80.00 %3.78 %4.64 % 10.0
Bonlon Industries Ltd 39.7 Cr. 28.0 49.9/26.612.9 56.60.00 %4.56 %2.99 % 10.0
Beekay Steel Industries Ltd 1,022 Cr. 536 845/5258.35 5260.19 %10.7 %11.2 % 10.0
Ecofinity Atomix Ltd 17.2 Cr. 44.8 69.7/32.919.4 9.840.00 %8.85 %8.56 % 10.0
Industry Average38,080.46 Cr308.5325.46145.150.37%8.73%9.17%7.50

All Competitor Stocks of Tata Steel Ltd

Quarterly Result

MetricDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales 41,93550,02853,46560,38760,78369,32463,43059,87857,08462,96259,49055,68255,312
Expenses 32,36735,84437,35543,93144,88954,29448,45753,81753,03655,74254,58751,41449,048
Operating Profit 9,56814,18416,11116,45615,89415,03014,9736,0604,0487,2194,9034,2686,264
OPM % 23%28%30%27%26%22%24%10%7%11%8%8%11%
Other Income 152-569102972481773884124912771,190-6,568-33
Interest 1,7861,8661,8111,0201,5321,0991,2181,5191,7681,7941,8251,9591,881
Depreciation 2,3422,3922,3252,2892,2442,2432,2372,3482,3682,3822,4122,4802,422
Profit before tax 5,5939,35712,07714,12012,16611,86511,9062,6054033,3211,855-6,7391,928
Tax % 28%23%19%11%21%17%35%50%721%53%72%3%73%
Net Profit 4,0117,1629,76812,5489,5989,8357,7141,297-2,5021,566525-6,511522
EPS in Rs 3.285.557.419.917.847.996.361.24-1.821.390.52-5.070.42

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MetricMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales 132,900134,712148,614139,504101,965112,299123,249157,669139,817156,294243,959243,353233,445
Expenses 120,483130,746132,430136,095102,59099,156101,816128,351122,354125,790180,469211,053210,792
Operating Profit 12,4173,96516,1843,409-62513,14421,43329,31817,46330,50463,49032,30022,653
OPM % 9%3%11%2%-1%12%17%19%12%20%26%13%10%
Other Income 4,9351,4457165,99410,346-3,78910,8981,524-2,8841801,3001,569-5,133
Interest 4,2503,9684,3374,8484,2215,0725,4557,6607,5337,6075,4626,2997,459
Depreciation 4,5175,5755,8415,9445,3065,6735,7427,3428,4419,2349,1019,3359,696
Profit before tax 8,585-4,1336,722-1,388193-1,39121,13515,841-1,39513,84450,22718,235365
Tax % 42%-78%45%-185%358%-200%16%42%184%41%17%56%
Net Profit 5,217-7,2723,665-3,939-497-4,16917,7439,1221,1748,19041,7498,075-3,898
EPS in Rs 4.78-6.263.19-3.48-0.34-3.7611.939.071.386.2632.887.17-2.74
Dividend Payout % 22%-11%27%-20%-203%-23%9%15%74%40%16%50%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-239.39%150.40%-207.48%87.38%-738.83%525.59%-48.59%-87.13%597.61%409.76%-80.66%
Change in YoY Net Profit Growth (%)0.00%389.79%-357.87%294.86%-826.22%1264.43%-574.18%-38.54%684.75%-187.86%-490.41%

Tata Steel Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:4%
5 Years:8%
3 Years:14%
TTM:-5%
Compounded Profit Growth
10 Years:6%
5 Years:-6%
3 Years:-7%
TTM:46%
Stock Price CAGR
10 Years:15%
5 Years:28%
3 Years:7%
1 Year:-3%
Return on Equity
10 Years:10%
5 Years:14%
3 Years:18%
Last Year:7%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:32 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital 9719719719709701,1451,1451,1451,1981,2211,2211,2471,247
Reserves 33,20139,56130,37842,76236,84959,72667,78072,43173,041113,222101,86190,78888,900
Borrowings 68,52981,62980,70181,98783,01492,147100,816116,32888,50175,56184,89387,08299,392
Other Liabilities 44,17649,44347,05951,16551,61455,70463,03259,24581,16992,41797,42190,19591,302
Total Liabilities 146,876171,604159,109176,884172,447208,722232,773249,149243,909282,422285,396269,312280,841
Fixed Assets 68,00274,90768,10072,20092,00796,105124,442134,551135,775133,288146,621148,814149,550
CWIP 14,27726,82228,67835,99615,78416,61418,64119,49719,00722,04631,21334,35639,051
Investments 3,2585,0933,45510,71412,45717,8995,7386,28510,68213,1408,4106,2586,471
Other Assets 61,34064,78158,87657,97452,20078,10383,95288,81678,445113,94899,15179,88585,769
Total Assets 146,876171,604159,109176,884172,447208,722232,773249,149243,909282,422285,396269,312280,841

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +14,03513,14611,88011,45510,8248,02325,33620,16944,32744,38121,68320,301
Cash from Investing Activity +-13,099-15,378-9,021-8,794-9,490-11,730-29,176-14,012-9,437-10,905-18,179-14,253
Cash from Financing Activity +-1,7801,015-2,617-4,729-2,5796,640-673-1,695-37,090-23,401-6,981-11,097
Net Cash Flow-844-1,218241-2,068-1,2452,933-4,5134,462-2,20010,075-3,477-5,049

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow12.00-65.00-65.00-77.00-706.00-70.00-71.00-71.00-99.00-58.00-12.00-52.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days383935433837272122181210
Inventory Days145156165180230224190197213213175176
Days Payable117133126167172161130136166161122127
Cash Conversion Cycle676274569699878269716659
Working Capital Days5-319102716712-334-0-10
ROCE %-1%10%1%1%6%12%14%6%12%31%13%7%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024
Promoters33.92%33.92%33.92%33.90%33.90%33.90%33.90%33.70%33.19%33.19%33.19%33.19%
FIIs22.87%21.95%21.52%21.87%20.62%20.28%20.31%20.01%19.61%19.68%19.25%18.53%
DIIs20.41%19.01%18.17%19.62%20.68%20.96%22.20%23.15%23.51%23.33%22.67%23.52%
Government0.10%0.10%0.16%0.16%0.16%0.16%0.16%0.16%0.16%0.18%0.18%0.18%
Public22.70%25.02%26.23%24.45%24.63%24.70%23.43%22.99%23.52%23.60%24.69%24.55%
No. of Shareholders15,87,31520,47,66133,71,41733,35,26536,44,09036,92,75038,04,72839,92,60947,17,44252,69,35459,87,13961,59,779

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Nifty 50 ETF147,985,4721.172011.8635,632,2582025-02-21315.31%
SBI S&P BSE Sensex ETF103,303,0581.341403.8935,632,2582025-02-21189.91%
SBI Balanced Advantage Fund45,456,7302.25617.9835,632,2582025-02-2127.57%
UTI Nifty 50 ETF40,980,2541.17557.1335,632,2582025-02-2115.01%
Mirae Asset Large & Midcap Fund35,790,8901.46486.5835,632,2582025-02-210.45%
UTI S&P BSE Sensex ETF35,632,2581.34484.2435,632,2582025-02-210%
SBI Contra Fund33,345,5251.92453.3335,632,2582025-02-21-6.42%
ICICI Prudential India Opportunities Fund31,962,5092.7434.5335,632,2582025-02-21-10.3%
ICICI Prudential Balanced Advantage Fund28,737,8420.72390.6935,632,2582025-02-21-19.35%
Mirae Asset Large Cap Fund25,125,7810.9341.5935,632,2582025-02-21-29.49%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue 1.001.0010.0010.0010.00
Basic EPS (Rs.) -3.627.17332.3563.7811.86
Diluted EPS (Rs.) -3.627.17332.0963.7811.86
Cash EPS (Rs.) 4.0313.91411.08142.7584.65
Book Value[Excl.RevalReserv]/Share (Rs.) 74.1086.12958.87640.69645.34
Book Value[Incl.RevalReserv]/Share (Rs.) 74.1086.12958.87640.69645.34
Revenue From Operations / Share (Rs.) 183.71199.271997.681306.581301.12
PBDIT / Share (Rs.) 19.3327.30526.32262.19171.62
PBIT / Share (Rs.) 11.4119.65451.80185.0995.57
PBT / Share (Rs.) -0.8714.59405.97112.86-13.70
Net Profit / Share (Rs.) -3.896.27336.5565.658.60
NP After MI And SOA / Share (Rs.) -3.567.17328.8062.5413.59
PBDIT Margin (%) 10.5213.6926.3420.0613.19
PBIT Margin (%) 6.219.8622.6114.167.34
PBT Margin (%) -0.477.3220.328.63-1.05
Net Profit Margin (%) -2.113.1416.845.020.66
NP After MI And SOA Margin (%) -1.933.5916.454.781.04
Return on Networth / Equity (%) -4.828.4935.0810.192.18
Return on Capital Employeed (%) 8.1312.5828.3112.695.79
Return On Assets (%) -1.623.0414.063.050.62
Long Term Debt / Equity (X) 0.560.490.390.891.32
Total Debt / Equity (X) 0.880.750.601.101.59
Asset Turnover Ratio (%) 0.810.840.910.630.31
Current Ratio (X) 0.710.891.020.840.95
Quick Ratio (X) 0.210.330.480.380.44
Inventory Turnover Ratio (X) 1.591.971.851.410.82
Dividend Payout Ratio (NP) (%) -99.3771.087.4815.2895.60
Dividend Payout Ratio (CP) (%) 80.9934.416.096.8414.49
Earning Retention Ratio (%) 199.3728.9292.5284.724.40
Cash Earning Retention Ratio (%) 19.0165.5993.9193.1685.51
Interest Coverage Ratio (X) 3.215.2911.774.132.59
Interest Coverage Ratio (Post Tax) (X) 1.392.208.552.171.78
Enterprise Value (Cr.) 267769.08194373.13215203.42175394.42138706.36
EV / Net Operating Revenue (X) 1.170.790.881.120.93
EV / EBITDA (X) 11.105.833.355.597.06
MarketCap / Net Operating Revenue (X) 0.840.520.650.620.20
Retention Ratios (%) 199.3728.9192.5184.714.39
Price / BV (X) 2.111.241.391.320.43
Price / Net Operating Revenue (X) 0.840.520.650.620.20
EarningsYield -0.020.060.250.070.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Tata Steel Ltd as of February 22, 2025 is: ₹240.96

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of February 22, 2025, Tata Steel Ltd is Undervalued by 70.89% compared to the current share price ₹141.00

Intrinsic Value of Tata Steel Ltd as of February 22, 2025 is: 173.82

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of February 22, 2025, Tata Steel Ltd is Undervalued by 23.28% compared to the current share price ₹141.00

Last 5 Year EPS CAGR: -27.87%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 4.50, which is a positive sign.
  2. The company has shown consistent growth in sales (158.46 cr) and profit (52.46 cr) over the years.
  1. The stock has a low average ROCE of 9.33%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 74.00, which may not be favorable.
  3. The company has higher borrowings (87,736.92) compared to reserves (65,423.08), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Tata Steel Ltd:
    1. Net Profit Margin: -2.11%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 8.13% (Industry Average ROCE: 8.73%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: -4.82% (Industry Average ROE: 9.17%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.39
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.21
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 62.1 (Industry average Stock P/E: 25.46)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.88
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Tata Steel Ltd. is a Public Limited Listed company incorporated on 26/08/1907 and has its registered office in the State of Maharashtra, India. Company's Corporate Identification Number(CIN) is L27100MH1907PLC000260 and registration number is 000260. Currently Company is involved in the business activities of Manufacture of hot-rolled and cold-rolled products of steel. Company's Total Operating Revenue is Rs. 140987.43 Cr. and Equity Capital is Rs. 1248.60 Cr. for the Year ended 31/03/2024.
INDUSTRYADDRESSCONTACT
SteelBombay House, 24, Homi Mody Street, Mumbai Maharashtra 400001cosec@tatasteel.com
http://www.tatasteel.com
Management
NamePosition Held
Mr. N ChandrasekaranChairman & Non-Exe.Director
Mr. Noel Naval TataNon Executive Vice Chairman
Mr. T V NarendranManaging Director & CEO
Mr. Koushik ChatterjeeExecutive Director & CFO
Mr. Saurabh AgrawalNon Executive Director
Mr. V K SharmaIndependent Director
Ms. Bharti Gupta RamolaIndependent Director
Mr. Farida KhambataIndependent Director
Mr. Deepak KapoorIndependent Director
Mr. Shekhar MandeIndependent Director

FAQ

What is Tata Steel Ltd's true worth and is it a good investment?

Let's break down Tata Steel Ltd's valuation simply:

We calculate intrinsic value using the PE Ratio Method - comparing the company's current price-to-earnings ratio with its historical average and industry peers. Think of it like checking if a stock is "on sale" compared to its typical pricing.

As of 22 February 2025:

  • Calculated Fair Value: ₹240.96
  • Current Market Price: ₹141.00
  • Variance: 70.89% higher

This suggests Tata Steel Ltd is currently undervalued by 70.89%. For context:

  • Market Cap: 1,75,718 Cr.
  • 52-Week Range: 185/123
  • Reserves (Sep 2024): ₹88,900 Cr
  • Liabilities: 280,841 Cr

Remember: The PE method gives a snapshot based on earnings multiples. While useful for quick comparisons, investors should also consider growth prospects, industry trends, and economic conditions. This calculation assumes historical PE ratios remain relevant - always verify with current market dynamics.

What is the Market Cap of Tata Steel Ltd?

The Market Cap of Tata Steel Ltd is 1,75,718 Cr..

What is the current Stock Price of Tata Steel Ltd as on 22 February 2025?

The current stock price of Tata Steel Ltd as on 22 February 2025 is ₹141.

What is the High / Low of Tata Steel Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Tata Steel Ltd stocks is 185/123.

What is the Stock P/E of Tata Steel Ltd?

The Stock P/E of Tata Steel Ltd is 62.1.

What is the Book Value of Tata Steel Ltd?

The Book Value of Tata Steel Ltd is 72.2.

What is the Dividend Yield of Tata Steel Ltd?

The Dividend Yield of Tata Steel Ltd is 2.56 %.

What is the ROCE of Tata Steel Ltd?

The ROCE of Tata Steel Ltd is 7.02 %.

What is the ROE of Tata Steel Ltd?

The ROE of Tata Steel Ltd is 6.55 %.

What is the Face Value of Tata Steel Ltd?

The Face Value of Tata Steel Ltd is 1.00.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Tata Steel Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE