5004

Tata SteelBSE:500470 Stock Report

Market Cap

₹1.7t

7D

-4.3%

1Y

250.4%

Updated

18 Sep, 2021

Data

Company Financials +
500470 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance3/6
Financial Health3/6
Dividends5/6

500470 Overview

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

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 +/- 5% a week.

Volatility Over Time: 500470's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-4.3%

500470

-0.9%

IN Metals and Mining

1.2%

IN Market


1 Year Return

250.4%

500470

131.3%

IN Metals and Mining

59.0%

IN Market

Return vs Industry: 500470 exceeded the Indian Metals and Mining industry which returned 131.3% over the past year.

Return vs Market: 500470 exceeded the Indian Market which returned 59% over the past year.


Shareholder returns

500470IndustryMarket
7 Day-4.3%-0.9%1.2%
30 Day-7.6%-1.5%7.0%
90 Day26.9%9.9%12.4%
1 Year258.3%250.4%142.3%131.3%61.3%59.0%
3 Year138.7%121.8%78.9%58.9%59.3%51.3%
5 Year335.9%272.5%195.5%142.0%97.1%82.0%

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

No news available

Tata Steel Fundamentals Summary

How do Tata Steel's earnings and revenue compare to its market cap?
500470 fundamental statistics
Market Cap₹1.67t
Earnings (TTM)₹206.32b
Revenue (TTM)₹1.84t

8.1x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
500470 income statement (TTM)
Revenue₹1.84t
Cost of Revenue₹684.37b
Gross Profit₹1.16t
Expenses₹951.22b
Earnings₹206.32b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)177.44
Gross Margin62.84%
Net Profit Margin11.20%
Debt/Equity Ratio114.2%

How did 500470 perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

14%

Payout Ratio

Valuation

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

8.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500470 (₹1385.3) is trading above our estimate of fair value (₹1056.71)

Significantly Below Fair Value: 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 (8.1x) compared to the Indian Metals and Mining industry average (11.3x).

PE vs Market: 500470 is good value based on its PE Ratio (8.1x) compared to the Indian market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: 500470's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 500470 is overvalued based on its PB Ratio (2.2x) compared to the IN Metals and Mining industry average (1.6x).


Future Growth

How is Tata Steel forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

-37.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500470's earnings are forecast to decline over the next 3 years (-37.1% per year).

Earnings vs Market: 500470's earnings are forecast to decline over the next 3 years (-37.1% per year).

High Growth Earnings: 500470's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 500470's revenue is expected to decline over the next 3 years (-6.3% per year).

High Growth Revenue: 500470's revenue is forecast to decline over the next 3 years (-6.3% 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 (17.2%).


Past Performance

How has Tata Steel performed over the past 5 years?

26.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500470 has high quality earnings.

Growing Profit Margin: 500470 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 500470 has become profitable over the past 5 years, growing earnings by 26.2% per year.

Accelerating Growth: 500470 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 500470 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (131.6%).


Return on Equity

High ROE: Whilst 500470's Return on Equity (29.17%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Tata Steel's financial position?


Financial Position Analysis

Short Term Liabilities: 500470's short term assets (₹602.1B) do not cover its short term liabilities (₹708.7B).

Long Term Liabilities: 500470's short term assets (₹602.1B) do not cover its long term liabilities (₹971.1B).


Debt to Equity History and Analysis

Debt Level: 500470's debt to equity ratio (114.2%) is considered high.

Reducing Debt: 500470's debt to equity ratio has reduced from 275.9% to 114.2% over the past 5 years.

Debt Coverage: 500470's debt is well covered by operating cash flow (50.1%).

Interest Coverage: 500470's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet


Dividend

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

1.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 500470's dividend (1.8%) is higher than the bottom 25% of dividend payers in the Indian market (0.34%).

High Dividend: 500470's dividend (1.8%) is in the top 25% of dividend payers in the Indian market (1.45%)


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: With its low payout ratio (14.1%), 500470's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500470's dividends in 3 years are forecast to be thoroughly covered by earnings (12.9% payout ratio).


Next Steps

Management

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

8.4yrs

Average management tenure


CEO

Thachat Narendran (56 yo)

8yrs

Tenure

₹155,839,000

Compensation

Mr. Thachat Viswanath Narendran serves as the Chief Executive Officer of Tata Steel Limited and served as its Managing Director of India & South East Asia. Mr. Narendran is Managing Director and Executive...


CEO Compensation Analysis

Compensation vs Market: Thachat's total compensation ($USD2.12M) is above average for companies of similar size in the Indian market ($USD1.17M).

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


Leadership Team

Experienced Management: 500470's management team is seasoned and experienced (8.4 years average tenure).


Board Members

Experienced Board: 500470's board of directors are considered experienced (6.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5%.


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: ₹1.667t
  • Shares outstanding: 1.20b
  • Website: https://www.tatasteel.com

Number of Employees


Location

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

Listings


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), Tata Steel Long Products, South-East...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 12:01
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.