Update shared on 26 Nov 2025
Fair value Increased 4.85%Narrative Update: Tata Steel Analyst Price Target Adjustment
Analysts have raised their price target for Tata Steel from ₹177.5 to ₹186.1. This adjustment reflects improved profit margin expectations, even as revenue growth forecasts have been revised slightly lower.
What's in the News
- Tata Steel received a significant demand letter from the Office of Deputy Director of Mines, Jajpur, concerning an alleged chrome ore dispatch shortfall from its Sukinda Chromite Block. This has resulted in a demand of INR 24.1 billion. The company filed a writ petition before the High Court of Orissa, which has granted interim protection by restraining authorities from coercive action until the next hearing on December 3, 2025. (Regulatory update)
- The Board of Directors will meet on November 12, 2025, to review audited standalone and unaudited consolidated financial results for the quarter and half-year ended September 30, 2025, and to consider acquiring a 50% equity stake in Tata BlueScope Steel Private Limited. (Board meeting)
- Tata Steel reported provisional production results for the second quarter and first half of FY2026, marking an 8% quarter-on-quarter increase in production to 5.67 million tons. This was driven by post-maintenance normalisation at the Jamshedpur plant. (Operating results)
- Tata Steel signed a non-binding joint letter of intent with the Government of the Netherlands and the Province of North-Holland, outlining plans for a transition to low-CO2 steel production and improved environmental standards at IJmuiden. The initiative includes plans to decommission certain facilities, reduce emissions, and implement a phased approach to further decarbonisation measures. (Strategic alliance)
Valuation Changes
- Consensus Analyst Price Target has increased from ₹177.5 to ₹186.1, reflecting a more optimistic valuation outlook.
- Discount Rate has risen slightly from 15.92% to 16.04%, indicating a marginal increase in perceived risk or cost of capital.
- Revenue Growth forecast has fallen from 7.20% to 6.63%, signaling a modest downward revision in top-line expectations.
- Net Profit Margin is expected to improve from 8.84% to 9.05%, suggesting stronger profitability projections.
- Future P/E has decreased marginally from 14.56x to 14.51x, which implies a slightly lower valuation multiple applied to forward earnings.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.