BSE:500470

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


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

Stable Share Price: 500470 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 500470's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-2.7%

500470

-1.8%

IN Metals and Mining

-0.9%

IN Market


1 Year Return

45.4%

500470

31.4%

IN Metals and Mining

17.8%

IN Market

Return vs Industry: 500470 exceeded the Indian Metals and Mining industry which returned 31.4% over the past year.

Return vs Market: 500470 exceeded the Indian Market which returned 17.8% over the past year.


Shareholder returns

500470IndustryMarket
7 Day-2.7%-1.8%-0.9%
30 Day16.0%11.3%5.2%
90 Day68.4%41.8%23.2%
1 Year49.1%45.4%39.3%31.4%20.0%17.8%
3 Year1.7%-9.6%-5.7%-17.0%8.5%3.2%
5 Year213.7%168.0%183.7%131.7%82.3%68.5%

Long-Term 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?

1.26x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 500470 (₹690.15) is trading above our estimate of fair value (₹404.14)

Significantly Below Fair Value: 500470 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500470 is unprofitable, so we can't compare its PE Ratio to the IN Metals and Mining industry average.

PE vs Market: 500470 is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 500470's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500470 is overvalued based on its PB Ratio (1.3x) compared to the IN Metals and Mining industry average (1.1x).


Next Steps

Future Growth

How is Tata Steel forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

52.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500470 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (7%).

Earnings vs Market: 500470 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 500470's is expected to become profitable in the next 3 years.

Revenue vs Market: 500470's revenue (5.3% per year) is forecast to grow slower than the Indian market (12.3% per year).

High Growth Revenue: 500470's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500470's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

How has Tata Steel performed over the past 5 years?

31.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500470 is currently unprofitable.

Growing Profit Margin: 500470 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 500470 is unprofitable, but has reduced losses over the past 5 years at a rate of 31.6% per year.

Accelerating Growth: Unable to compare 500470's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 500470 is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-23.5%).


Return on Equity

High ROE: 500470 has a negative Return on Equity (-7.96%), as it is currently unprofitable.


Next Steps

Financial Health

How is Tata Steel's financial position?


Financial Position Analysis

Short Term Liabilities: 500470's short term assets (₹589.6B) exceed its short term liabilities (₹568.8B).

Long Term Liabilities: 500470's short term assets (₹589.6B) do not cover its long term liabilities (₹1,199.9B).


Debt to Equity History and Analysis

Debt Level: 500470's debt to equity ratio (154.5%) is considered high.

Reducing Debt: 500470's debt to equity ratio has reduced from 192.8% to 154.5% over the past 5 years.

Debt Coverage: 500470's debt is well covered by operating cash flow (29%).

Interest Coverage: 500470 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

1.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 500470's dividend (1.45%) is higher than the bottom 25% of dividend payers in the Indian market (0.44%).

High Dividend: 500470's dividend (1.45%) is low compared to the top 25% of dividend payers in the Indian market (1.83%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: 500470 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: 500470's dividends in 3 years are forecast to be thoroughly covered by earnings (13.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.6yrs

Average management tenure


CEO

Thachat Narendran (55 yo)

7.33yrs

Tenure

₹112,201,000

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 ($USD1.53M) is above average for companies of similar size in the Indian market ($USD946.73K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Thachat Narendran
CEO, MD & Director7.33yrs₹112.20m0.00018%
₹ 1.4m
Koushik Chatterjee
CFO & Executive Director8.17yrs₹102.50m0.00014%
₹ 1.1m
Sudhakar Marur
Chief Technology Officerno data₹11.47mno data
Jayanta Banerjee
Chief Information Officerno data₹21.84mno data
Parvatheesam Kanchinadham
Company Secretary & Chief Legal Officer (Corporate & Compliance)no data₹25.66m0.000010%
₹ 78.6k
Suresh Tripathi
Vice President of Human Resource Management8.25yrs₹48.64mno data
Sudhansu Pathak
Vice President of Steel Manufacturing36.5yrs₹32.59mno data
Rajesh Jha
Vice President of Engineering & Projects30.5yrs₹30.98mno data
Sanjiv Paul
Vice President of Safetyno data₹34.62mno data
Samita Shah
Group Head of Corporate Finance & Risk Managementno datano datano data
Ritu Sinha
Chief of Corporate Administrationno datano datano data
Sandep Agrawal
Head of Group Investor Relations3.42yrsno datano data

10.6yrs

Average Tenure

53yo

Average Age

Experienced Management: 500470's management team is seasoned and experienced (10.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thachat Narendran
CEO, MD & Director7.33yrs₹112.20m0.00018%
₹ 1.4m
Koushik Chatterjee
CFO & Executive Director8.17yrs₹102.50m0.00014%
₹ 1.1m
Ratan Tata
Chairman Emeritus8.08yrs₹25.32mno data
Aman Mehta
Independent Director3.83yrs₹9.56mno data
Mallika Srinivasan
Independent Director8.67yrs₹12.32mno data
Om Bhatt
Independent Non-Executive Director7.58yrs₹17.72mno data
Natarajan Chandrasekaran
Chairman of the Board3.92yrs₹280.00k0.017%
₹ 137.2m
Vijay Sharma
Non-Executive Director2.42yrs₹7.79mno data
Saurabh Agrawal
Non-Executive Director3.42yrs₹560.00kno data
Peter Blauwhoff
Independent Director3.92yrs₹10.68mno data
Deepak Kapoor
Independent Director3.75yrs₹10.57mno data

3.9yrs

Average Tenure

61yo

Average Age

Experienced Board: 500470's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: ₹786.015b
  • 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
TATL.YOTCPK (Pink Sheets LLC)GDRUSUSDAug 2006
TTSTEBDL (Bourse de Luxembourg)GDRLUUSDAug 2006
TTSTLSE (London Stock Exchange)GDR EACH REPR 1 ORD SH'REG S'GBUSDJul 2009
HWHGDB (Deutsche Boerse AG)GDR EACH REPR 1 ORD SH'REG S'DEEURJul 2009
TTSTLBATS-CHIXE (BATS 'Chi-X Europe')GDR EACH REPR 1 ORD SH'REG S'GBUSDJul 2009
890144BSE (Mumbai Stock Exchange)Partly Paid SharesININRMar 2018
890144NSEI (National Stock Exchange of India)Partly Paid SharesININRMar 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 Analysis2021/01/20 12:08
End of Day Share Price2021/01/20 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.