Tata Steel Ltd’s fundamental analysis highlights key financial metrics including market capitalisation of ₹187,028.27 crore, PE ratio of -42.15, debt-to-equity ratio of 94.21, and return on equity of -4.49%. These figures reflect the company’s financial health and current market valuation.
Content:
- Tata Steel Ltd Overview
- Tata Steel Financial Results
- Tata Steel Ltd Financial Analysis
- Tata Steel Ltd Company Metrics
- Tata Steel Stock Performance
- Tata Steel Ltd Peer Comparison
- Tata Steel Shareholding Pattern
- Tata Steel History
- How To Invest In Tata Steel Ltd Share?
- Tata Steel Limited Fundamental Analysis – FAQs
Tata Steel Ltd Overview
Tata Steel Ltd is a global steel company with a significant presence in the steel manufacturing sector. It operates across the entire value chain of steel production, from mining raw materials to distributing finished steel products.
The company has a market capitalisation of ₹187,028.27 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 23.21% below its 52-week high and 30.73% above its 52-week low.
Tata Steel Financial Results
Tata Steel Ltd showed fluctuations from FY 22 to FY 24, with sales decreasing from ₹2,43,959 crore to ₹2,29,171 crore and net profit falling from ₹41,749 crore to a loss of ₹-4,910 crore. The company experienced changes in OPM and EPS over the years.
1. Revenue Trend: Sales decreased from ₹2,43,959 crore in FY 22 to ₹2,43,353 crore in FY 23, and further to ₹2,29,171 crore in FY 24, indicating a decline in revenue.
2. Equity and Liabilities: Interest expenses rose from ₹5,462 crore in FY 22 to ₹7,508 crore in FY 24, suggesting increased financial liabilities or borrowing. Depreciation also increased from ₹9,101 crore to ₹9,882 crore over the same period.
3. Profitability: Operating Profit Margin (OPM) declined from 26% in FY 22 to 10% in FY 24, reflecting decreased operational efficiency. EBITDA saw a significant drop from ₹64,275 crore in FY 22 to ₹24,115 crore in FY 24.
4. Earnings per Share (EPS): EPS decreased drastically from ₹332 in FY 22 to ₹-4 in FY 24, indicating a significant decline in profitability per share.
5. Return on Net Worth (RoNW): While specific RoNW figures are not provided, the decrease in net profit from ₹41,749 crore in FY 22 to a loss of ₹-4,910 crore in FY 24 suggests a negative impact on RoNW, indicating reduced returns on shareholders’ equity.
6. Financial Position: The company’s financial position weakened with net profit turning negative and substantial decreases in EBITDA and operating profit, indicating challenges in maintaining robust financial health.
Tata Steel Ltd Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 2,29,171 | 2,43,353 | 2,43,959 |
| Expenses | 2,06,865 | 2,11,053 | 1,80,469 |
| Operating Profit | 22,306 | 32,300 | 63,490 |
| OPM % | 10 | 13 | 26 |
| Other Income | -6,005 | 1,151 | 651 |
| EBITDA | 24,115 | 33,338 | 64,275 |
| Interest | 7,508 | 6,299 | 5,462 |
| Depreciation | 9,882 | 9,335 | 9,101 |
| Profit Before Tax | -1,089 | 17,817 | 49,578 |
| Tax % | -345 | 57 | 17 |
| Net Profit | -4,910 | 8,075 | 41,749 |
| EPS | -4 | 7 | 332 |
| Dividend Payout % | -99.45 | 50.21 | 15.35 |
* Consolidated Figures in Rs. Crores
Tata Steel Ltd Company Metrics
Tata Steel’s market capitalization is ₹187,028.27 crore, with a book value of ₹73.7 per share. The company’s total debt is ₹87,082.12 crore, and its ROE is -4.49%. Quarterly EBITDA is ₹6,688.96 crore, and the dividend yield is 2.4%. Asset Turnover Ratio is 0.83.
Market Capitalization:
Market Capitalization represents the total market value of Tata Steel’s outstanding shares, amounting to ₹187,028.27 crore.
Book Value:
The book value per share of Tata Steel Ltd is ₹73.7 indicating the value of the company’s net assets divided by its shares outstanding.
Face Value:
The face value of Tata Steel’s shares is ₹1, which is the nominal value of each share as stated on the share certificate.
Asset Turnover Ratio:
The Asset Turnover Ratio of 0.83 measures how efficiently Tata Steel uses its assets to generate sales revenue or sales income.
Total Debt:
The Total Debt of Tata Steel stands at ₹87,082.12 crore, representing the total amount of money the company owes to creditors.
Return on Equity (ROE):
The ROE of -4.49% measures Tata Steel’s profitability by revealing how much profit the company generates with the money shareholders have invested. The negative value indicates a loss.
EBITDA (Q):
The quarterly EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Tata Steel is ₹6,688.96 crore, indicating the company’s operating performance.
Dividend Yield:
The dividend yield of 2.4% shows the annual dividend payment as a percentage of Tata Steel’s current share price, indicating the return on investment from dividends alone.
Tata Steel Stock Performance
Tata Steel Ltd delivered returns of 26.2% in one year, 2.10% over three years, and 33.2% over five years, indicating mixed performance. This showcases the company’s varying ability to provide returns across different investment periods.
| Period | Return on Investment (%) |
| 1 Year | 26.2 |
| 3 Years | 2.10 |
| 5 Years | 33.2 |
Example: If an investor had invested ₹1,000 in Tata Steel’s stock:
1 year ago, their investment would be worth ₹1,262.
3 years ago, their investment would have grown to ₹1,021.
5 years ago, their investment would have increased to approximately ₹1,332.
Tata Steel Ltd Peer Comparison
Tata Steel Ltd, with a CMP of ₹152 and a P/E ratio of 117, has a market cap of ₹1,89,512 Cr and a one-year return of 26%. Compared to peers like Jindal Saw (92% return) and Tube Investments (41% return), Tata Steel shows varied performance within the steel sector.
| Name | CMP Rs. | P/E | Mar Cap Rs.Cr. | 1Yr return % | Vol 1d | 1mth return % | From 52w high | Down % | 6mth return % |
| JSW Steel | 905 | 32 | 2,21,338 | 10 | 18,20,085 | -2.15 | 0.94 | 5.66 | 11.53 |
| Tata Steel | 152 | 117 | 1,89,512 | 26 | 2,53,74,385 | -10 | 0.82 | 17.76 | 10.49 |
| Tube Investments | 4,007 | 91 | 77,505 | 41 | 71,196 | -6 | 0.86 | 14.41 | 14.58 |
| Jindal Stain. | 665 | 22 | 54,738 | 62 | 5,94,301 | -16 | 0.78 | 21.61 | 12.62 |
| S A I L | 129 | 14 | 53,428 | 42 | 8,22,95,413 | -14.82 | 0.74 | 26.36 | 5.38 |
| APL Apollo Tubes | 1,425 | 54 | 39,550 | -8 | 2,25,395 | -8.2 | 0.79 | 21.10 | 5.48 |
| Jindal Saw | 653 | 12 | 20,886 | 92 | 21,41,637 | 16 | 0.97 | 2.51 | 31.95 |
Tata Steel Shareholding Pattern
Tata Steel Ltd’s shareholding pattern showed slight changes from December 2023 to June 2024. Promoter holdings remained stable at 33.19%. FII holdings slightly decreased from 20.01% to 19.68%, while DII holdings increased from 23.99% to 24.14%. Retail and others’ shares increased from 22.31% to 22.97%.
| Jun-24 | Mar-24 | Dec-23 | |
| Promoters | 33.19 | 33.19 | 34 |
| FII | 19.68 | 19.61 | 20.01 |
| DII | 24.14 | 24.33 | 23.99 |
| Retail & others | 22.97 | 22.86 | 22.31 |
Tata Steel History
Tata Steel Limited is a global steel company with an impressive annual crude steel capacity of approximately 35 million tons. The company’s core business revolves around the manufacturing and distribution of steel products worldwide. Its operations span the entire steel manufacturing value chain, from mining raw materials to producing finished steel products.
The company offers a diverse range of steel products catering to various industries and applications. These include cold-rolled sheets, galvanized products, hot-rolled commercial steel, and high-tensile steel strapping. Tata Steel also provides pre-engineered buildings and undertakes construction projects, demonstrating its versatility in the steel industry.
Tata Steel has developed a strong portfolio of branded products, each tailored for specific applications. Some of its notable brands include MagiZinc, Ymagine, Contiflo, Strongbox, Advantica, and Colorcoat. These brands cater to different sectors such as automotive, construction, and industrial applications, showcasing the company’s innovation and market-focused approach.
How To Invest In Tata Steel Ltd Share?
To invest in Tata Steel Ltd shares, begin by opening a demat account with Alice Blue. Complete the necessary KYC process and fund your account with the desired investment amount.
Research the company’s fundamentals, financial performance, and market trends before making an investment decision. Use the trading platform provided by the broker to place a buy order for Tata Steel shares at your preferred price.
Monitor your investment regularly and stay informed about company news and market developments. Consider setting up a systematic investment plan (SIP) for long-term investing in the stock if it aligns with your financial goals.
Tata Steel Limited Fundamental Analysis – FAQs
Fundamental analysis of Tata Steel examines key financial metrics: Market Cap (₹187,028.27 crore), PE Ratio (-42.15), Debt to Equity (94.21), and Return on Equity (-4.49%). These indicators provide insights into the company’s financial health, market valuation, and current challenges in profitability within the steel industry.
The market capitalization of Tata Steel Ltd is ₹187,028.27 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
Tata Steel Limited is a global steel company with a significant presence in steel manufacturing and distribution. It operates across the entire steel production value chain, from mining raw materials to producing finished steel products. The company offers a wide range of steel products and branded solutions.
Tata Steel is a public limited company, part of the Tata Group. While the Tata Group, through its holding companies, owns a significant stake, it is a listed company with multiple shareholders including institutional investors and public shareholders.
The main shareholders of Tata Steel typically include Tata Sons (the holding company of Tata Group) as a major stakeholder, along with institutional investors (both domestic and foreign), mutual funds, and public shareholders. For the most current shareholding information, refer to the latest pattern disclosed by the company.
Tata Steel operates in the steel industry. It is primarily engaged in the manufacturing, processing, and distribution of steel and related products. The company is a key player in the global steel sector, providing products for various industries including automotive, construction, and infrastructure.
To invest in Tata Steel shares, open a demat account with Alice Blue. Complete the KYC process and fund your account. Research the company thoroughly, then use the trading platform to place a buy order for the desired number of shares at your preferred price.
Determining if Tata Steel is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like the P/E ratio, and PEG ratio, and compare them with industry peers and historical values for a balanced assessment.
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