BSE:500470

Stock Analysis Report

Executive Summary

Tata Steel Limited manufactures and distributes steel products in India and internationally.

Snowflake

Fundamentals

Good value average dividend payer.


Similar Companies

Share Price & News

How has Tata Steel's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.0%

500470

4.5%

IN Metals and Mining

3.9%

IN Market


1 Year Return

-35.0%

500470

-27.8%

IN Metals and Mining

6.0%

IN Market

Return vs Industry: 500470 underperformed the Indian Metals and Mining industry which returned -27.8% over the past year.

Return vs Market: 500470 underperformed the Indian Market which returned 6% over the past year.


Shareholder returns

500470IndustryMarket
7 Day6.0%4.5%3.9%
30 Day4.3%3.8%7.8%
90 Day-21.4%-8.9%2.5%
1 Year-33.3%-35.0%-24.7%-27.8%8.2%6.0%
3 Year-6.0%-15.8%1.8%-9.7%23.0%16.7%
5 Year-7.9%-21.6%4.0%-13.0%43.5%30.0%

Price Volatility Vs. Market

How volatile is Tata Steel's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tata Steel undervalued compared to its fair value and its price relative to the market?

4.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 500470 (₹359.9) is trading above our estimate of fair value (₹211.09)

Significantly Undervalued: 500470 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500470 is good value based on its PE Ratio (4.7x) compared to the Metals and Mining industry average (8.2x).

PE vs Market: 500470 is good value based on its PE Ratio (4.7x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 500470 is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: 500470 is good value based on its PB Ratio (0.6x) compared to the IN Metals and Mining industry average (0.8x).


Next Steps

Future Growth

How is Tata Steel forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

19.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500470's forecast earnings growth (19.6% per year) is above the savings rate (7.6%).

Earnings vs Market: 500470's earnings (19.6% per year) are forecast to grow faster than the Indian market (18.2% per year).

High Growth Earnings: 500470's earnings are forecast to grow, but not significantly.

Revenue vs Market: 500470's revenue (1.8% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: 500470's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 500470's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

How has Tata Steel performed over the past 5 years?

52.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 500470's earnings have grown significantly by 52.1% per year over the past 5 years.

Accelerating Growth: 500470's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 500470 had negative earnings growth (-37.8%) over the past year, making it difficult to compare to the Metals and Mining industry average (14.3%).


Return on Equity

High ROE: 500470's Return on Equity (11.1%) is considered low.


Return on Assets

ROA vs Industry: 500470's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: 500470 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Tata Steel's financial position?


Financial Position Analysis

Short Term Liabilities: 500470's short term assets (₹548.5B) do not cover its short term liabilities (₹610.3B)

Long Term Liabilities: 500470's short term assets (548.5B) do not cover its long term liabilities (1,012.6B)


Debt to Equity History and Analysis

Debt Level: 500470's debt to equity ratio (136%) is considered high

Reducing Debt: 500470's debt to equity ratio has reduced from 190% to 136% over the past 5 years.

Debt Coverage: 500470's debt is well covered by operating cash flow (26.1%).

Interest Coverage: 500470's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet

Inventory Level: 500470 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500470's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Tata Steel's current dividend yield, its reliability and sustainability?

3.61%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%0.6%markettop25%2.4%industryaverage4.3%forecastin3Years3.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 500470's dividend (3.61%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 500470's dividend (3.61%) is in the top 25% of dividend payers in the Indian market (2.42%)

Stable Dividend: 500470's dividend payments have been volatile in the past 10 years.

Growing Dividend: 500470's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17%), 500470's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500470's dividends in 3 years are forecast to be well covered by earnings (17.8% payout ratio).


Next Steps

Management

What is the CEO of Tata Steel's salary, the management and board of directors tenure and is there insider trading?

7.0yrs

Average management tenure


CEO

Thachat Narendran (54yo)

6.1yrs

Tenure

₹112,263,000

Compensation

Mr. Thachat Viswanath Narendran serves as the Chief Executive Officer and Managing Director of Tata Steel Limited. Mr. Narendran has been Managing Director of India & South East Asia at Tata Steel Limited  ...


CEO Compensation Analysis

Compensation vs. Market: Thachat's total compensation ($USD1.58M) is about average for companies of similar size in the Indian market ($USD1.43M).

Compensation vs Earnings: Thachat's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.0yrs

Average Tenure

53yo

Average Age

Experienced Management: 500470's management team is seasoned and experienced (7 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

60.5yo

Average Age

Experienced Board: 500470's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Koushik Chatterjee (51yo)

    CFO & Executive Director

    • Tenure: 6.9yrs
    • Compensation: ₹108.21m
  • Anand Sen (60yo)

    President of TQM & Steel Business

    • Tenure: 38.3yrs
  • Thachat Narendran (54yo)

    CEO, MD & Director

    • Tenure: 6.1yrs
    • Compensation: ₹112.26m
  • Debashish Bhattacharjee (54yo)

    Vice President of Technology & New Materials Business

    • Tenure: 0.8yrs
  • Parvatheesam Kanchinadham (43yo)

    Company Secretary & Chief Legal Officer (Corporate & Compliance)

    • Tenure: 0yrs
    • Compensation: ₹16.99m
  • Suresh Tripathi (58yo)

    Vice President of Human Resource Management

    • Tenure: 7yrs
  • Jayanta Banerjee (52yo)

    Chief Information Officer

    • Tenure: 0yrs
  • Samita Shah (48yo)

    Group Head of Corporate Finance & Risk Management

    • Tenure: 0yrs
  • D B Ramam (49yo)

    Principal Executive Officer

    • Tenure: 0yrs
  • Sushanta Ganguli (55yo)

    Chief of Sales Planning & Administration

    • Tenure: 0yrs

Board Members

  • Ratan Tata (82yo)

    Chairman Emeritus

    • Tenure: 6.8yrs
    • Compensation: ₹25.32m
  • Aman Mehta (73yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: ₹9.48m
  • Mallika Srinivasan (60yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: ₹12.90m
  • Koushik Chatterjee (51yo)

    CFO & Executive Director

    • Tenure: 6.9yrs
    • Compensation: ₹108.21m
  • Om Bhatt (68yo)

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: ₹19.06m
  • Natarajan Chandrasekaran (56yo)

    Chairman of the Board

    • Tenure: 2.7yrs
    • Compensation: ₹480.00k
  • Vijay Sharma (61yo)

    Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: ₹640.00k
  • Thachat Narendran (54yo)

    CEO, MD & Director

    • Tenure: 6.1yrs
    • Compensation: ₹112.26m
  • Petrus Blauwhoff (66yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: ₹11.78m
  • Deepak Kapoor (60yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: ₹11.40m

Company Information

Tata Steel Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tata Steel Limited
  • Ticker: 500470
  • Exchange: BSE
  • Founded: 1907
  • Industry: Steel
  • Sector: Materials
  • Market Cap: ₹412.420b
  • Shares outstanding: 1.15b
  • Website: https://www.tatasteel.com

Number of Employees


Location

  • Tata Steel Limited
  • Bombay House
  • 24, Homi Mody Street
  • Mumbai
  • Maharashtra
  • 400001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500470BSE (Mumbai Stock Exchange)YesOrdinary SharesININRJan 1998
TATASTEELNSEI (National Stock Exchange of India)YesOrdinary SharesININRJan 1998
TTSTEBDL (Bourse de Luxembourg)GDRLUUSDAug 2006
TTSTLSE (London Stock Exchange)GDR REG SGBUSDJul 2009
HWHGDB (Deutsche Boerse AG)GDR REG SDEEURJul 2009
890144BSE (Mumbai Stock Exchange)INR10(PPD INR154 UPD 461)ININRMar 2018

Biography

Tata Steel Limited manufactures and distributes steel products in India and internationally. It operates in Tata Steel India, Bamnipal Steel (including Tata Steel BSL), Other Indian Operations, Tata Steel  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 12:41
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.