Update shared on06 Sep 2025
Fair value Increased 0.79%Despite slightly lower revenue growth expectations and a modest uptick in future P/E, analysts have left Tata Steel’s fair value largely unchanged, with the price target nudging up marginally to ₹169.43.
What's in the News
- Tata Steel faces multiple regulatory actions, including a INR 19.0 billion demand for alleged shortfall in mineral dispatch from the Sukinda Chromite Block, which the company is contesting in the Orissa High Court; authorities are currently restrained from taking coercive steps.
- The Bombay High Court set aside a significant reassessment notice and related proceedings by income tax authorities regarding a INR 251.9 billion loan waiver, citing issuance by the wrong authority; potential for case revival exists if precedents change.
- The company received several GST-related show cause notices alleging irregular input tax credit claims, with cumulative demands exceeding INR 28.7 billion (including for amalgamated Tata Steel Long Products and the main entity).
- Board approved divestment of TSAML's entire equity and preference stake in Ceramat Private Limited to Lionstead Applied Materials Private Limited.
- First quarter FY2026 consolidated production and deliveries declined year-over-year to 7.33 MT and 7.12 MT, respectively.
Valuation Changes
Summary of Valuation Changes for Tata Steel
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from ₹168.10 to ₹169.43.
- The Consensus Revenue Growth forecasts for Tata Steel has fallen slightly from 7.1% per annum to 6.8% per annum.
- The Future P/E for Tata Steel has risen slightly from 13.40x to 13.67x.
Disclaimer
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