BSE:890144

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Undervalued 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

Stable Share Price: 890144's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-13.5%

890144

-6.6%

IN Metals and Mining

-3.5%

IN Market


1 Year Return

-0.7%

890144

-16.7%

IN Metals and Mining

5.2%

IN Market

Return vs Industry: 890144 exceeded the Indian Metals and Mining industry which returned -15.3% over the past year.

Return vs Market: 890144 underperformed the Indian Market which returned 6.4% over the past year.


Shareholder returns

890144IndustryMarket
7 Day-13.5%-6.6%-3.5%
30 Day-19.2%-11.1%-3.9%
90 Day1.5%-7.8%-2.1%
1 Year4.3%-0.7%-15.1%-16.7%7.2%5.2%
3 Yearn/a-17.2%-26.9%18.9%12.4%
5 Yearn/a14.1%-4.6%29.4%17.7%

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

Valuation

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

6.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 890144 (₹46) is trading below our estimate of fair value (₹48.52)

Significantly Below Fair Value: 890144 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 890144 is good value based on its PE Ratio (8.1x) compared to the Metals and Mining industry average (9.9x).

PE vs Market: 890144 is good value based on its PE Ratio (8.1x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: 890144 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 890144 is good value based on its PB Ratio (0.7x) 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 21 analysts?

18.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 890144's forecast earnings growth (18% per year) is above the savings rate (6.5%).

Earnings vs Market: 890144's earnings (18% per year) are forecast to grow slower than the Indian market (20.4% per year).

High Growth Earnings: 890144's earnings are forecast to grow, but not significantly.

Revenue vs Market: 890144's revenue (3.6% per year) is forecast to grow slower than the Indian market (9% per year).

High Growth Revenue: 890144's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 890144's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has Tata Steel performed over the past 5 years?

55.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 890144 has high quality earnings.

Growing Profit Margin: 890144's current net profit margins (4.1%) are lower than last year (11.2%).


Past Earnings Growth Analysis

Earnings Trend: 890144's earnings have grown significantly by 55.7% per year over the past 5 years.

Accelerating Growth: 890144's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 890144 had negative earnings growth (-66%) over the past year, making it difficult to compare to the Metals and Mining industry average (-7.1%).


Return on Equity

High ROE: 890144's Return on Equity (7.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tata Steel's financial position?


Financial Position Analysis

Short Term Liabilities: 890144's short term assets (₹546.7B) do not cover its short term liabilities (₹641.6B).

Long Term Liabilities: 890144's short term assets (₹546.7B) do not cover its long term liabilities (₹1,040.4B).


Debt to Equity History and Analysis

Debt Level: 890144's debt to equity ratio (131.3%) is considered high.

Reducing Debt: 890144's debt to equity ratio has increased from 128.5% to 131.3% over the past 5 years.

Debt Coverage: 890144's debt is not well covered by operating cash flow (18.8%).

Interest Coverage: 890144's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet

Inventory Level: 890144 has a high level of physical assets or inventory.

Debt Coverage by Assets: 890144'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?

3.15%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%0.6%markettop25%2.7%industryaverage4.4%forecastin3Years2.6%

Current dividend yield vs market & industry

Notable Dividend: 890144's dividend (3.12%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 890144's dividend (3.12%) is in the top 25% of dividend payers in the Indian market (2.63%)


Stability and Growth of Payments

Stable Dividend: 890144's dividend payments have been volatile in the past 10 years.

Growing Dividend: 890144's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.1%), 890144's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 890144's dividends in 3 years are forecast to be thoroughly covered by earnings (14.3% payout ratio).


Next Steps

Management

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

6.4yrs

Average management tenure


CEO

Thachat Narendran (54yo)

6.4yrs

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 ($USD1.56M) is above average for companies of similar size in the Indian market ($USD1.16M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Thachat Narendran
CEO, MD & Director6.4yrs₹112.26m0.00018% 850.5k
Koushik Chatterjee
CFO & Executive Director7.3yrs₹108.21m0.00013% 614.2k
Parvatheesam Kanchinadham
Company Secretary & Chief Legal Officer (Corporate & Compliance)0yrs₹16.99m0.000010% 47.2k
Suresh Tripathi
Vice President of Human Resource Management7.3yrsno datano data
D B Ramam
Principal Executive Officer0yrsno datano data
Samita Shah
Group Head of Corporate Finance & Risk Management0yrsno datano data
Debashish Bhattacharjee
Vice President of Technology & New Materials Business1.2yrsno datano data
Jayanta Banerjee
Chief Information Officer0yrsno datano data
Sushanta Ganguli
Chief of Sales Planning & Administration0yrsno datano data
Sandep Agrawal
Head of Group Investor Relations2.5yrsno datano data

6.4yrs

Average Tenure

52yo

Average Age

Experienced Management: 890144's management team is seasoned and experienced (6.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thachat Narendran
CEO, MD & Director6.4yrs₹112.26m0.00018% 850.5k
Koushik Chatterjee
CFO & Executive Director7.3yrs₹108.21m0.00013% 614.2k
Ratan Tata
Chairman Emeritus7.2yrs₹25.32mno data
Aman Mehta
Independent Director2.9yrs₹9.48mno data
Mallika Srinivasan
Independent Director7.8yrs₹12.90mno data
Om Bhatt
Independent Non-Executive Director6.7yrs₹19.06mno data
Natarajan Chandrasekaran
Chairman of the Board3yrs₹480.00kno data
Vijay Sharma
Non-Executive Director1.5yrs₹640.00k0.000020% 94.5k
Peter Blauwhoff
Independent Director3yrs₹11.78mno data
Deepak Kapoor
Independent Director2.8yrs₹11.40mno data

4.7yrs

Average Tenure

60.5yo

Average Age

Experienced Board: 890144's board of directors are considered experienced (4.7 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 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: 890144
  • Exchange: BSE
  • Founded: 1907
  • Industry: Steel
  • Sector: Materials
  • Market Cap: ₹472.473b
  • 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)SPON GDR REP 1 ORD SHSLUUSDAug 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
890144BSE (Mumbai Stock Exchange)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 Europe, Other Trade Related Operations, and Rest of the World segments. The company offers hot-rolled (HR) and cold-rolled (CR) coated steel coils and sheets, precision tubes, tire bead wires, spring wires, and bearings, as well as auto ancillaries for the automotive market; and bearings, galvanized iron wires, agriculture and garden tools, and conveyance tubes, as well as fencing, farming, and irrigation equipment for the agriculture market. It also provides rebars, steel doors and windows, roofing sheets, plumbing pipes, tubes, prefabricated houses, water kiosks, modular toilets, office cabins, rooftop houses, higher Dia rebars and corrosion-resistance steels, cut and bend bars, PC strands, and ground granulated blast furnace slags for individual house builders, corporate and government bodies, infrastructure companies, and housing and commercial customers in the construction market. In addition, the company offers CR, coated, HR, tube, wire rod, ferro chrome and manganese, boiler tube, pipes, ferroshot, blast furnace slag, and metallic products for use in panels and appliances, fabrication and capital goods, furniture, LPG, and welding applications, as well as the process industries, such as cement, power, and steel in the industrial and general engineering markets. Tata Steel Limited was founded in 1907 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 13:36
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
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.