Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Tata Steel Ltd

About the Company - Tata Steel Ltd

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 basic iron and steel. Company’s Total Operating Revenue is Rs. 129021.35 Cr. and Equity Capital is Rs. 1222.37 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
SteelBombay House, 24, Homi Mody Street, Mumbai Maharashtra 400001cosec@tatasteel.com
http://www.tatasteel.com
Management
NamePosition Held
Mr. Ratan N TataChairman Emeritus
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. O P BhattIndependent Director
Mr. Shekhar MandeIndependent Director

Tata Steel Ltd. Share Price Update

Share PriceValue
Today₹141.30
Previous Day₹143.70

Basic Stock Data of Tata Steel Ltd

Market Cap 1,81,573 Cr.
Current Price 145
High / Low147/102
Stock P/E93.9
Book Value 72.5
Dividend Yield2.48 %
ROCE12.6 %
ROE7.28 %
Face Value 1.00

Data Source: screener.in

Competitors of Tata Steel Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Aanchal Ispat Ltd 16.7 Cr. 8.0019.0/7.36 8.500.00 %20.1 %67.6 % 10.0
Adishakti Loha & Ispat ltd 5.56 Cr. 12.216.0/7.4026.5 11.40.00 %1.78 %1.39 % 10.0
Steel Authority of India Ltd 52,871 Cr. 128150/77.615.6 1361.17 %5.89 %3.57 % 10.0
Prakash Industries Ltd 3,183 Cr. 178224/48.810.0 1740.00 %7.87 %6.58 % 10.0
Visa Steel Ltd 232 Cr. 20.022.3/9.80 70.00.00 %7.45 %% 10.0
Industry Average11,261.65 Cr69.2410.4279.980.23%8.62%15.83%10.00

Tata Steel Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales41,93550,02853,46560,38760,78369,32463,43059,87857,08462,96259,49055,68255,312
Expenses32,36735,84437,35543,93144,88954,29448,45753,81753,03655,74254,58751,41449,048
Operating Profit9,56814,18416,11116,45615,89415,03014,9736,0604,0487,2194,9034,2686,264
OPM %23%28%30%27%26%22%24%10%7%11%8%8%11%
Other Income152-569102972481773884124912771,190-6,568-33
Interest1,7861,8661,8111,0201,5321,0991,2181,5191,7681,7941,8251,9591,881
Depreciation2,3422,3922,3252,2892,2442,2432,2372,3482,3682,3822,4122,4802,422
Profit before tax5,5939,35712,07714,12012,16611,86511,9062,6054033,3211,855-6,7391,928
Tax %28%23%19%11%21%17%35%50%721%53%72%3%73%
Net Profit4,0117,1629,76812,5489,5989,8357,7141,297-2,5021,566525-6,511522
EPS in Rs3.285.557.419.917.847.996.361.24-1.821.390.52-5.070.42

Tata Steel Ltd Quarterly Chart

Tejas Networks Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales132,900134,712148,614139,504101,965112,299123,249157,669139,817156,294243,959243,353235,217
Expenses120,483130,746132,430136,095102,59099,156101,816128,351122,354125,790180,469211,053214,779
Operating Profit12,4173,96516,1843,409-62513,14421,43329,31817,46330,50463,49032,30020,437
OPM %9%3%11%2%-1%12%17%19%12%20%26%13%9%
Other Income4,9351,4457165,99410,346-3,78910,8981,524-2,8841801,3001,569-4,609
Interest4,2503,9684,3374,8484,2215,0725,4557,6607,5337,6075,4626,2997,346
Depreciation4,5175,5755,8415,9445,3065,6735,7427,3428,4419,2349,1019,3359,643
Profit before tax8,585-4,1336,722-1,388193-1,39121,13515,841-1,39513,84450,22718,235-1,160
Tax %42%-78%45%-185%358%-200%16%42%184%41%17%56%
Net Profit5,217-7,2723,665-3,939-497-4,16917,7439,1221,1748,19041,7498,075-6,922
EPS in Rs4.78-6.263.19-3.48-0.34-3.7611.939.071.386.2632.887.17-4.98
Dividend Payout %22%-11%27%-20%-203%-23%9%15%74%40%16%50%

Tata Steel Ltd Profit & Loss Yearly Chart

Tata Steel Ltd Growth

Compounded Sales Growth
10 Years:6%
5 Years:15%
3 Years:20%
TTM:-7%
Compounded Profit Growth
10 Years:11%
5 Years:3%
3 Years:146%
TTM:-89%
Stock Price CAGR
10 Years:15%
5 Years:24%
3 Years:29%
1 Year:31%
Return on Equity
10 Years:11%
5 Years:15%
3 Years:20%
Last Year:7%

Tata Steel Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital9719719719719709701,1451,1451,1451,1981,2211,2211,221
Reserves41,64533,20139,56130,37842,76236,84959,72667,78072,43173,041113,222101,86187,976
Preference Capital22212000020130000
Borrowings59,89768,50781,60980,70181,98783,01492,127100,803116,32888,50175,56184,89389,723
Other Liabilities44,27844,19749,46347,05951,16551,61455,72463,04559,24581,16992,41797,42192,894
Total Liabilities146,791146,876171,604159,109176,884172,447208,722232,773249,149243,909282,422285,396271,814
Fixed Assets59,28768,00274,90768,10072,20092,00796,105124,442134,551135,775133,288146,621141,929
CWIP20,19614,27726,82228,67835,99615,78416,61418,64119,49719,00722,04631,21335,761
Investments4,0213,2585,0933,45510,71412,45717,8995,7386,28510,68213,1408,4107,693
Other Assets63,28661,34064,78158,87657,97452,20078,10383,95288,81678,445113,94899,15186,432
Total Assets146,791146,876171,604159,109176,884172,447208,722232,773249,149243,909282,422285,396271,814

Tata Steel Ltd Reserves and Borrowings Chart

Tata Steel Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 12,01814,03513,14611,88011,45510,8248,02325,33620,16944,32744,38121,683
Cash from Investing Activity -3,705-13,099-15,378-9,021-8,794-9,490-11,730-29,176-14,012-9,437-10,905-18,179
Cash from Financing Activity -8,462-1,7801,015-2,617-4,729-2,5796,640-673-1,695-37,090-23,401-6,981
Net Cash Flow-149-844-1,218241-2,068-1,2452,933-4,5134,462-2,20010,075-3,477

Tejas Networks Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days413839354338372721221812
Inventory Days142145156165180230224190197213213175
Days Payable137117133126167172161130136166161122
Cash Conversion Cycle466762745696998782697166
Working Capital Days55-319102716712-3340
ROCE %9%-1%10%1%1%6%12%14%6%12%31%13%

Tata Steel Ltd Financial Efficiency Indicators Chart

Tejas Networks Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Nov 2023
Promoters34.41%34.41%34.41%33.92%33.92%33.92%33.92%33.90%33.90%33.90%33.90%33.70%
FIIs18.56%21.94%22.38%21.36%22.87%21.95%21.52%21.87%20.62%20.28%20.31%19.84%
DIIs25.16%19.28%18.28%18.11%20.41%19.01%18.17%19.62%20.68%20.96%22.20%22.60%
Government0.25%0.10%0.10%0.10%0.10%0.10%0.16%0.16%0.16%0.16%0.16%0.16%
Public21.62%24.27%24.83%26.51%22.70%25.02%26.23%24.45%24.63%24.70%23.43%23.70%
No. of Shareholders8,73,19810,22,48212,30,36716,91,27815,87,31520,47,66133,71,41733,35,26536,44,09036,92,75038,04,72839,80,312

Tata Steel Ltd Shareholding Pattern Chart

No. of Tata Steel Ltd Shareholders

Tata Steel Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Nifty 50 ETF1493535681.192084.98
SBI S&P BSE Sensex ETF1051474721.361466.81
SBI Balanced Advantage Fund454567302.4634.58
UTI Nifty 50 ETF411939971.19575.07
UTI S&P BSE Sensex ETF358454811.36500.04
Mirae Asset Large & Midcap Fund345566841.48482.41
ICICI Prudential India Opportunities Fund319625092.93446.2
ICICI Prudential Balanced Advantage Fund285398420.74398.42
Mirae Asset Large Cap Fund264855800.97369.74
Nippon India Large Cap Fund250031601.73349.04

Tata Steel Ltd ROCE Trend

Tata Steel Ltd EPS Trend

Tata Steel Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.0010.0010.0010.0010.00
Basic EPS (Rs.)7.17332.3563.7811.8687.75
Diluted EPS (Rs.)7.17332.0963.7811.8687.74
Cash EPS (Rs.)13.91411.08142.7584.65141.63
Book Value[Excl.RevalReserv]/Share (Rs.)86.12958.87640.69645.34602.78
Book Value[Incl.RevalReserv]/Share (Rs.)86.12958.87640.69645.34602.78
Revenue From Operations / Share (Rs.)199.271997.681306.581301.121377.09
PBDIT / Share (Rs.)27.30526.32262.19171.62269.04
PBIT / Share (Rs.)19.65451.80185.0995.57204.92
PBT / Share (Rs.)14.59405.97112.86-13.70136.96
Net Profit / Share (Rs.)6.27336.5565.658.6077.50
NP After MI And SOA / Share (Rs.)7.17328.8062.5413.5989.25
PBDIT Margin (%)13.6926.3420.0613.1919.53
PBIT Margin (%)9.8622.6114.167.3414.88
PBT Margin (%)7.3220.328.63-1.059.94
Net Profit Margin (%)3.1416.845.020.665.62
NP After MI And SOA Margin (%)3.5916.454.781.046.48
Return on Networth / Equity (%)8.4935.0810.192.1815.33
Return on Capital Employeed (%)12.5828.3112.695.7913.59
Return On Assets (%)3.0414.063.050.624.37
Long Term Debt / Equity (X)0.490.390.891.321.21
Total Debt / Equity (X)0.750.601.101.591.37
Asset Turnover Ratio (%)0.840.910.390.310.40
Current Ratio (X)0.891.020.840.950.96
Quick Ratio (X)0.330.480.380.440.44
Inventory Turnover Ratio (X)1.971.850.940.821.00
Dividend Payout Ratio (NP) (%)71.087.4815.2895.6011.20
Dividend Payout Ratio (CP) (%)34.416.096.8414.496.51
Earning Retention Ratio (%)28.9292.5284.724.4088.80
Cash Earning Retention Ratio (%)65.5993.9193.1685.5193.49
Interest Coverage Ratio (X)5.2911.774.132.594.02
Interest Coverage Ratio (Post Tax) (X)2.208.552.171.782.19
Enterprise Value (Cr.)194373.13215203.42175394.42138706.36149802.10
EV / Net Operating Revenue (X)0.790.881.120.930.95
EV / EBITDA (X)5.833.355.597.064.86
MarketCap / Net Operating Revenue (X)0.520.650.620.200.37
Retention Ratios (%)28.9192.5184.714.3988.79
Price / BV (X)1.241.391.320.430.89
Price / Net Operating Revenue (X)0.520.650.620.200.37
EarningsYield0.060.250.070.050.17

Tata Steel Ltd Profitability Ratios (%)

Tata Steel Ltd Liquidity Ratios

Tata Steel Ltd Liquidity Ratios (%)

Tata Steel Ltd Interest Coverage Ratios (%)

Tata Steel Ltd Valuation Ratios

Fair Value of Tata Steel Ltd Stock

Fair Value: ₹507.90

The stock is undervalued by 250.27% compared to the current price ₹145

*Investments are subject to market risks

Strength and Weakness of Tata Steel Ltd Stock

StrengthWeakness
  1. The stock has a low average Working Capital Days of 5.75, which is a positive sign.
  2. The company has higher reserves (61,571.77 cr) compared to borrowings (7.38 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (158.62 cr) and profit (24.31 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 191.41 and average Dividend Yield of 13.77%.
  2. The stock has a low average ROCE of 9.50%, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 72.92, which may not be favorable.

Should I Buy Tata Steel Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Tata Steel Ltd:
    1. Net Profit Margin: 3.14%
      • 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: 12.58% (Industry Average ROCE: 11.67%)
      • 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. Interest Coverage Ratio (Post Tax): 2.20
      • 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.
    4. Quick Ratio: 0.33
      • 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.
    5. ✗ Stock P/E: 91.2 (Industry average Stock P/E: 12.68)
      • 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.
    6. ✓ Total Debt / Equity: 0.75
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

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