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Tata Steel

BSE:890144
Snowflake Description

Average dividend payer and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
890144
BSE
₹570B
Market Cap
  1. Home
  2. IN
  3. Materials
Company description

Tata Steel Limited manufactures and distributes steel products in India and internationally. The last earnings update was 62 days ago. More info.


Add to Portfolio Compare Print
  • Tata Steel has significant price volatility in the past 3 months.
890144 Share Price and Events
7 Day Returns
9.1%
BSE:890144
1.3%
IN Metals and Mining
1%
IN Market
1 Year Returns
-48.9%
BSE:890144
-18.1%
IN Metals and Mining
1%
IN Market
890144 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Tata Steel (890144) 9.1% -3.2% 13.6% -48.9% - -
IN Metals and Mining 1.3% -5% -7.2% -18.1% 39.1% -20.2%
IN Market 1% -2.1% -0.7% 1% 30.4% 35.1%
1 Year Return vs Industry and Market
  • 890144 underperformed the Metals and Mining industry which returned -18.1% over the past year.
  • 890144 underperformed the Market in India which returned 1% over the past year.
Price Volatility
890144
Industry
5yr Volatility vs Market

Value

 Is Tata Steel undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Tata Steel to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Tata Steel.

BSE:890144 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 20 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 22.6%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BSE:890144
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.04
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.036 (1 + (1- 35%) (159.84%))
1.746
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.75
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.746 * 8.6%)
22.56%

Discounted Cash Flow Calculation for BSE:890144 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Tata Steel is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

BSE:890144 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 22.56%)
2019 -189,840.31 Analyst x13 -154,893.86
2020 72,773.87 Analyst x15 48,447.01
2021 88,480.77 Analyst x13 48,060.27
2022 77,322.50 Analyst x2 34,268.02
2023 71,783.88 Est @ -7.16% 25,957.08
2024 69,810.47 Est @ -2.75% 20,596.58
2025 70,048.26 Est @ 0.34% 16,862.34
2026 71,801.88 Est @ 2.5% 14,102.69
2027 74,686.45 Est @ 4.02% 11,968.89
2028 78,478.42 Est @ 5.08% 10,261.43
Present value of next 10 years cash flows ₹75,630.44
BSE:890144 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹78,478.42 × (1 + 7.55%) ÷ (22.56% – 7.55%)
₹562,257.46
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹562,257.46 ÷ (1 + 22.56%)10
₹73,517.87
BSE:890144 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹75,630.44 + ₹73,517.87
₹149,148.30
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹149,148.30 / 1,145.93
₹130.15
BSE:890144 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in BSE:890144 represents 0.12987x of BSE:500470
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.12987x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 130.15 x 0.12987
₹16.90
Value per share (INR) From above. ₹16.90
Current discount Discount to share price of ₹66.30
= -1 x (₹66.30 - ₹16.90) / ₹16.90
-292.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Tata Steel is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Tata Steel's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Tata Steel's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BSE:890144 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in INR ₹88.31
BSE:500470 Share Price ** BSE (2019-06-26) in INR ₹510.5
India Metals and Mining Industry PE Ratio Median Figure of 138 Publicly-Listed Metals and Mining Companies 9.74x
India Market PE Ratio Median Figure of 2,825 Publicly-Listed Companies 15.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Tata Steel.

BSE:890144 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:500470 Share Price ÷ EPS (both in INR)

= 510.5 ÷ 88.31

5.78x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tata Steel is good value based on earnings compared to the IN Metals and Mining industry average.
  • Tata Steel is good value based on earnings compared to the India market.
Price based on expected Growth
Does Tata Steel's expected growth come at a high price?
Raw Data
BSE:890144 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.78x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
-7.3%per year
India Metals and Mining Industry PEG Ratio Median Figure of 17 Publicly-Listed Metals and Mining Companies 0.67x
India Market PEG Ratio Median Figure of 523 Publicly-Listed Companies 1.31x

*Line of best fit is calculated by linear regression .

BSE:890144 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.78x ÷ -7.3%

-0.79x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tata Steel earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Tata Steel's assets?
Raw Data
BSE:890144 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in INR ₹591.31
BSE:500470 Share Price * BSE (2019-06-26) in INR ₹510.5
India Metals and Mining Industry PB Ratio Median Figure of 167 Publicly-Listed Metals and Mining Companies 0.97x
India Market PB Ratio Median Figure of 3,653 Publicly-Listed Companies 0.96x
BSE:890144 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:500470 Share Price ÷ Book Value per Share (both in INR)

= 510.5 ÷ 591.31

0.86x

* Primary Listing of Tata Steel.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tata Steel is good value based on assets compared to the IN Metals and Mining industry average.
X
Value checks
We assess Tata Steel's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Tata Steel has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-7.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Tata Steel expected to grow at an attractive rate?
  • Tata Steel's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Tata Steel's earnings are expected to decrease over the next 1-3 years, this is below the India market average.
  • Tata Steel's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
BSE:890144 Future Growth Rates Data Sources
Data Point Source Value (per year)
BSE:890144 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts -7.3%
BSE:890144 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts 1.7%
India Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 7.6%
India Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 5.2%
India Market Earnings Growth Rate Market Cap Weighted Average 16.7%
India Market Revenue Growth Rate Market Cap Weighted Average 9.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BSE:890144 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BSE:890144 Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 1,627,323 170,437 103,266 1
2021-03-31 1,633,525 207,203 82,334 19
2020-03-31 1,608,240 174,523 77,639 19
BSE:890144 Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-03-31 1,576,690 102,835
2018-12-31 1,600,451 178,561
2018-09-30 1,522,718 168,664
2018-06-30 1,411,919 142,381
2018-03-31 1,330,164 80,234 132,025
2017-12-31 1,344,188 22,895
2017-09-30 1,286,558 12,378
2017-06-30 1,221,824 1,820
2017-03-31 1,174,199 108,244 -5,506
2016-12-31 1,187,192 -71,508
2016-09-30 1,154,291 -94,108
2016-06-30 1,154,435 -30,943

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Tata Steel's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Tata Steel's revenue is expected to grow by 1.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BSE:890144 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below

All data from Tata Steel Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:890144 Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 84.61 93.50 75.72 2.00
2021-03-31 70.45 104.73 46.38 18.00
2020-03-31 65.66 80.80 46.45 18.00
BSE:890144 Past Financials Data
Date (Data in INR Millions) EPS *
2019-03-31 88.31
2018-12-31 155.03
2018-09-30 156.58
2018-06-30 134.65
2018-03-31 127.56
2017-12-31 27.75
2017-09-30 12.45
2017-06-30 1.86
2017-03-31 -5.68
2016-12-31 -79.13
2016-09-30 -98.80
2016-06-30 -31.31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Tata Steel is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Tata Steel's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Tata Steel has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Tata Steel performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Tata Steel's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Tata Steel has delivered over 20% year on year earnings growth in the past 5 years.
  • Tata Steel's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Tata Steel's 1-year earnings growth is negative, it can't be compared to the IN Metals and Mining industry average.
Earnings and Revenue History
Tata Steel's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Tata Steel Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:890144 Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,576,689.90 102,834.50 187,588.70
2018-12-31 1,600,451.40 178,561.30 215,905.50
2018-09-30 1,522,718.30 168,664.10 213,772.30
2018-06-30 1,411,918.70 142,380.70 206,750.10
2018-03-31 1,330,163.70 132,024.50 200,456.20
2017-12-31 1,344,187.90 22,894.90 196,045.70
2017-09-30 1,286,558.00 12,377.70 193,582.10
2017-06-30 1,221,823.50 1,819.60 194,168.50
2017-03-31 1,174,199.40 -5,506.20 196,163.20
2016-12-31 1,187,191.90 -71,507.60 238,407.20
2016-09-30 1,154,291.40 -94,107.50 237,787.50
2016-06-30 1,154,435.00 -30,942.90 240,509.90
2016-03-31 1,063,399.20 19,830.40 203,171.80
2015-12-31 1,213,102.20 -56,863.10 338,747.40
2015-09-30 1,269,044.30 -34,019.70 340,015.70
2015-06-30 1,333,768.50 -36,763.50 345,559.80
2015-03-31 1,395,037.30 -41,019.80 254,796.10
2014-12-31 1,482,542.60 26,075.40 353,640.10
2014-09-30 1,513,402.20 29,536.70 355,004.00
2014-06-30 1,521,982.10 26,161.10 352,251.20
2014-03-31 1,486,135.50 34,177.90 341,770.20
2013-12-31 1,408,046.40 -41,510.60 323,081.70
2013-09-30 1,362,163.40 -54,173.60 316,985.60
2013-06-30 1,337,140.20 -66,980.60 307,161.80
2013-03-31 1,347,115.40 -72,391.90 304,517.60
2012-12-31 1,340,596.40 -2,760.00 300,858.70
2012-09-30 1,350,555.70 -1,154.80 293,761.60
2012-06-30 1,335,217.50 4,675.90 285,224.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Tata Steel has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Tata Steel used its assets less efficiently than the IN Metals and Mining industry average last year based on Return on Assets.
  • Tata Steel has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Tata Steel's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Tata Steel has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Tata Steel's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Tata Steel's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Tata Steel's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Tata Steel's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Tata Steel's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Tata Steel Company Filings, last reported 2 months ago.

BSE:890144 Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 712,895.40 911,448.10 71,147.90
2018-12-31 676,054.10 1,150,290.30 152,429.30
2018-09-30 676,054.10 1,150,290.30 152,429.30
2018-06-30 618,071.40 921,470.50 229,467.60
2018-03-31 618,071.40 890,259.40 229,467.60
2017-12-31 320,285.10 895,354.90 125,556.50
2017-09-30 320,285.10 895,354.90 125,556.50
2017-06-30 394,210.20 830,144.90 106,743.90
2017-03-31 394,210.20 799,690.30 105,735.10
2016-12-31 382,889.50 827,775.10 99,706.80
2016-09-30 382,889.50 827,775.10 99,706.80
2016-06-30 301,530.90 862,037.80 114,316.80
2016-03-31 445,134.90 792,467.30 109,755.30
2015-12-31 367,258.60 717,983.60 71,386.50
2015-09-30 367,258.60 717,983.60 71,386.50
2015-06-30 330,732.60 807,012.90 101,245.60
2015-03-31 330,732.60 797,018.70 101,245.60
2014-12-31 438,388.20 568,911.60 143,628.20
2014-09-30 438,388.20 568,911.60 143,628.20
2014-06-30 422,896.80 816,086.50 112,729.00
2014-03-31 422,896.80 806,539.40 112,729.00
2013-12-31 425,819.70 651,741.40 127,313.60
2013-09-30 425,819.70 651,741.40 127,313.60
2013-06-30 358,628.10 660,743.20 106,199.60
2013-03-31 358,628.10 676,309.20 105,942.10
2012-12-31 467,191.10 639,751.80 69,298.70
2012-09-30 444,412.60 534,311.90 95,903.70
2012-06-30 441,347.00 598,967.70 121,999.50
  • Tata Steel's level of debt (127.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (193% vs 127.9% today).
  • Debt is not well covered by operating cash flow (8.8%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.9x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Tata Steel's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Tata Steel has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.55%
Current annual income from Tata Steel dividends. Estimated to be 2.15% next year.
If you bought ₹2,000 of Tata Steel shares you are expected to receive ₹51 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Tata Steel's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.55%).
  • Tata Steel's dividend is above the markets top 25% of dividend payers in India (2.08%).
Upcoming dividend payment

Purchase Tata Steel before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BSE:890144 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
India Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 68 Stocks 3.8%
India Market Average Dividend Yield Market Cap Weighted Average of 1447 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 2.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BSE:890144 Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 10.05 2.00
2021-03-31 11.08 20.00
2020-03-31 11.00 21.00
BSE:890144 Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-04-25 13.000 2.619
2018-05-16 10.000 1.856
2017-05-16 10.000 1.601
2016-05-26 8.000 1.982
2015-07-21 8.000 3.113
2014-05-14 10.000 2.470
2013-05-23 8.000 2.470
2012-05-18 12.000 3.165
2011-05-25 12.000 2.625
2010-05-26 8.000 1.373
2009-06-25 16.000 3.039

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Tata Steel's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (6.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (8.7x coverage).
X
Income/ dividend checks
We assess Tata Steel's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Tata Steel afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Tata Steel has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Thachat Narendran
COMPENSATION ₹112,263,000
AGE 53
TENURE AS CEO 5.8 years
CEO Bio

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 since November 1, 2013 and has been its Executive Director since September 19, 2013. He serves as the Chairman and Non-Executive-Additional Director at Bhushan Steel Ltd. since July 11, 2018. Mr. Narendran served as a Vice President of Safety, Flat Products & Long Products at Tata Steel Limited and served as its Vice President of Safety & Flat Products. He served as the Chief Executive Officer and President of NatSteel Holdings Pte Ltd., an affiliate of Tata Steel Limited from 2008 to April 1, 2010. He served as Deputy President of Operations of NatSteel Holdings Pte Ltd. since April 2006. Mr. Narendran is a member of Board of World Steel Association and a member of its Executive Committee. He has 29 years of experience. Besides this, he was Co-Chair of Mining & Metals Governing Council of the World Economic Forum from 2016 to 2018. He is also part of various prestigious organization both at Global and Indian level, National Council of CII, Past Chair of CII Eastern Region and the Jharkhand State Council, BRICS Business Council, etc. He is Chairman of Board of Governors of XLRI Jamshedpur. He joined NatSteel Asia Pte Ltd. as an Executive Vice President in May 2005. He served as a Director of South East Asia Iron & Steel Institute (SEAISI) and also served as the President of the ASEAN Iron & Steel Federation (AISIF) from 2007 to 2009. Mr. Narendran served as Deputy President of NatSteel Asia Pte. Ltd. from 2006 to 2008. He served as an Executive Vice President of Operations at NatSteel Asia Pte. Ltd. from 2005 to 2006. He served as the President of NatSteel Asia Pte. Ltd. from 2008 to April 1, 2010. He played a vital role in the operational integration of Tata Steel and NatSteel Asia group companies. He was Chairman of Tata Steel (Thailand) Public Company Limited from July 29, 2015 to January 10, 2018. He served as the Chairman of The Siam Industrial Wire Co., Ltd. from 2008 to April 1, 2010. He served as the Chairman and Legal Representative of NatSteel (Xiamen) Ltd. from 2008 to April 1, 2010. He served as the Chairman and Legal Representative Wuxi Jinyang Metal Products Co., Ltd. from 2008 to April 1, 2010. He serves as a Director of Tata Steel Europe Limited and Tata BlueScope Steel Limited. He serves as a Director of NatSteel Holdings Pte Ltd. He served as a Director of The Tinplate Company of India Limited from May 7, 2010 to October 24, 2013. He served an Additional Director of Tata Steel Processing and Distribution Limited. He served as a Director of Burwill Trading Pte Ltd., Wuxi Jinyang Metal Products Co., Ltd., Eastern Steel Services Pte Ltd., SteelAsia Manufacturing Corporation and Eaststeel Construction Services Private Ltd. from 2006 to April 1, 2010. He served as a Director of Materials Recycling Pte Ltd., NatSteel (Xiamen) Ltd., Komisaris PT Material Recycling Indonesia and NatSteel Recycling Pte Ltd. from 2007 to April 1, 2010. He served as a Director of NatSteel Asia (S) Pte Ltd. from 2006 to April 1, 2010. He served as Director of NatSteel Trade International Pte Ltd., Best Bar Pty Ltd., Best Bar (Vic) Pty Ltd., NatSteel Australia Pty Ltd. and NatSteelVina Co., Ltd. from 2005 to April 1, 2010. He was Chevening Scholar in 1996 and has attended the Advanced Management Programme in CEDEP - INSEAD, Fountainbleau, France. Mr. Narendran holds a Bachelor of Engineering (Honours) in Mechanical Engineering from REC (NIT) Trichy in 1986 and a Master’s in Business Administration from the Indian Institute of Management in Calcutta. He holds PGDM.

CEO Compensation
  • Thachat's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Thachat's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Tata Steel management team in years:

9
Average Tenure
50
Average Age
  • The average tenure for the Tata Steel management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Thachat Narendran

TITLE
CEO, MD & Director
COMPENSATION
₹112M
AGE
53
TENURE
5.8 yrs

Koushik Chatterjee

TITLE
CFO & Executive Director
COMPENSATION
₹108M
AGE
50
TENURE
11.4 yrs

Parvatheesam Kanchinadham

TITLE
Company Secretary & Chief Legal Officer (Corporate & Compliance)
COMPENSATION
₹17M
AGE
42

Suresh Tripathi

TITLE
Vice President of Human Resource Management
AGE
57
TENURE
6.7 yrs

Sandip Biswas

TITLE
Group Executive Vice President of Finance
AGE
50

Anand Sen

TITLE
President of TQM & Steel Business
AGE
59
TENURE
37.9 yrs

Rajesh Jha

TITLE
Vice President of Engineering & Projects
AGE
49
TENURE
28.9 yrs

D B Ramam

TITLE
Principal Executive Officer
AGE
48

Samita Shah

TITLE
Group Head of Corporate Finance & Risk Management
AGE
47

Debashish Bhattacharjee

TITLE
Vice President of Technology & New Materials Business
AGE
53
TENURE
0.5 yrs
Board of Directors Tenure

Average tenure and age of the Tata Steel board of directors in years:

4
Average Tenure
59.5
Average Age
  • The tenure for the Tata Steel board of directors is about average.
Board of Directors

Natarajan Chandrasekaran

TITLE
Chairman of the Board
COMPENSATION
₹480K
AGE
55
TENURE
2.3 yrs

Thachat Narendran

TITLE
CEO, MD & Director
COMPENSATION
₹112M
AGE
53
TENURE
5.8 yrs

Ratan Tata

TITLE
Chairman Emeritus
COMPENSATION
₹25M
AGE
81
TENURE
6.5 yrs

Koushik Chatterjee

TITLE
CFO & Executive Director
COMPENSATION
₹108M
AGE
50
TENURE
6.6 yrs

Mallika Srinivasan

TITLE
Independent Director
COMPENSATION
₹13M
AGE
59
TENURE
7.1 yrs

Om Bhatt

TITLE
Independent Non-Executive Director
COMPENSATION
₹19M
AGE
67
TENURE
6 yrs

Petrus Blauwhoff

TITLE
Independent Director
COMPENSATION
₹12M
AGE
65
TENURE
2.3 yrs

Aman Mehta

TITLE
Independent Director
COMPENSATION
₹9M
AGE
72
TENURE
2.3 yrs

Deepak Kapoor

TITLE
Independent Director
COMPENSATION
₹11M
AGE
59
TENURE
2.2 yrs

Vijay Sharma

TITLE
Non-Executive Director
COMPENSATION
₹640K
AGE
60
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess Tata Steel's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Tata Steel has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

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.

Details
Name: Tata Steel Limited
890144
Exchange: BSE
Founded: 1907
₹570,214,464,513
1,145,929,390
Website: http://www.tatasteel.com
Address: Tata Steel Limited
Bombay House,
24, Homi Mody Street,
Mumbai,
Maharashtra, 400001,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 500470 Ordinary Shares Mumbai Stock Exchange IN INR 22. Jan 1998
NSEI TATASTEEL Ordinary Shares National Stock Exchange of India IN INR 22. Jan 1998
LSE TTST GDR EACH REPR 1 ORD SH'REG S' London Stock Exchange GB USD 22. Jul 2009
BSE 890144 INR10(PPD INR154 UPD 461) Mumbai Stock Exchange IN INR 19. Mar 2018
BDL TTSTE SPON GDR REP 1 ORD SHS Bourse de Luxembourg LU USD 04. Aug 2006
DB HWHG GDR EACH REPR 1 ORD SH'REG S' Deutsche Boerse AG DE EUR 22. Jul 2009
Number of employees
Current staff
Staff numbers
65,000
Tata Steel employees.
Industry
Steel
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 13:00
End of day share price update: 2019/06/26 00:00
Last estimates confirmation: 2019/06/25
Last earnings filing: 2019/04/25
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.