Tata Steel Limited is an Indian multinational steel-making company, based in Jamshedpur, Jharkhand and headquartered in Mumbai, Maharashtra. It is a part of the Tata Group, one of India’s largest conglomerates.
Tata Steel is the second largest steel producer in India (behind JSW Steel) and the eleventh largest steel producer in the world with an annual crude steel capacity of 34 million tonnes. The company has manufacturing operations in India, the United Kingdom, the Netherlands, Thailand, and Indonesia. Tata Steel employs approximately 78,500 people across five continents.
Tata Steel was founded in 1907 by Jamsetji Tata, with the support of the Indian government. The company’s first steel mill was built in Jamshedpur, Jharkhand, which is now Tata Steel’s largest manufacturing facility. Tata Steel has since expanded its operations through a series of acquisitions and mergers. In 2007, the company acquired Corus Group, Europe’s second largest steel producer, which made Tata Steel the fifth largest steel producer in the world at the time.
Tata Steel’s products include hot rolled coils, cold rolled coils, plates, pipes, tubes, and wires. The company also produces a range of value-added steel products, such as coated and galvanized steel, and high-strength steel. Tata Steel’s customers include the automotive, construction, engineering, and infrastructure sectors.
Tata Steel is committed to sustainability and has set ambitious targets for reducing its carbon footprint and increasing its use of recycled materials. The company is also investing in renewable energy sources, such as solar and wind power.
In addition to its steelmaking operations, Tata Steel also has a number of other businesses, including mining, trading, and power generation. The company is a major player in the Indian economy and is a key driver of the country’s infrastructure development.
TATA Steel Overview
Company Name | Tata Steel Limited |
---|---|
Headquarters | Mumbai, Maharashtra, India |
Industry | Steelmaking |
Founded | 1907 |
Founder | Jamsetji Tata |
Website | https://www.tatasteel.com/ |
CEO | T.K. Ramakrishnan |
Employees | Approximately 78,500 |
Production Capacity | 34 million tonnes per year |
Products | Hot rolled coils, cold rolled coils, plates, pipes, tubes, wires, coated and galvanized steel, high-strength steel |
Customers | Automotive, construction, engineering, infrastructure sectors |
Sustainability Initiatives | Reducing carbon footprint, increasing use of recycled materials, investing in renewable energy |
Other Businesses | Mining, trading, power generation |
TATA Steel Products
Category | Products |
---|---|
Flat Products | Hot rolled coils, Cold rolled coils, Plates |
Long Products | Pipes, Tubes, Wires |
Specialty Products | Coated and galvanized steel, High-strength steel |
TATA Steel Awards and Recognition
Year | Award | Category | Description |
---|---|---|---|
2023 | India’s Most Admired Company | Business Leadership and Entrepreneurial Excellence | Awarded by FORTUNE and Hay Group |
2023 | Best Conscious Capitalist Award | Sustainability | Conferred by Forbes India |
2021 | 100 Best Companies for Women in India | Diversity and Inclusion | Recognized by Working Mother and Avtar |
2021 | Supplier Engagement Leader India | Sustainability | Awarded by CDP |
2021 | Gold Employer | LGBT+ Inclusion | Awarded by India Workplace Equality Index (IWEI) |
2021 | Top Innovative Company (Large) | Manufacturing | Awarded by CII Industrial Innovation Awards |
2021 | Top 10 Sustainable Organisations of India | Sustainability | Featured by Hurun Research Institute, Capri Global Capital Hurun India Impact 50 |
2021 | Best Sectoral Performance in Iron & Steel | Corporate Performance | Awarded by Dun & Bradstreet Corporate Awards |
2020 | Sustainability Champions | Sustainability | Awarded to Tata Steel India and Tata Steel Europe |
2020 | Silver Shield | Financial Reporting | Awarded by Institute of Chartered Accountants of India |
2020 | Best Company to Work For | Employer Recognition | Awarded by Business Today |
2020 | Top Employer for LGBT+ inclusion | Diversity and Inclusion | Awarded by India Workplace Equality Index (IWEI) |
2020 | India’s Most Valuable Metals & Mining Brand | Brand Value | Ranked by ‘India 100 2020’ |
2020 | Excellence in Digital Communications and Excellence in Education and Training | Innovation and Training | Awarded by worldsteel’s Steelie Award |
TATA Steel Fundamentals
Metric | Value |
---|---|
Market Capitalization | ₹1,71,548 Crore |
Revenue | ₹1,22,421 Crore |
EBITDA | Not Available |
EPS | Not Available |
P/E Ratio | 245.00 |
P/B Ratio | 1.36 |
Dividend Yield | 2.58 % |
Debt/Equity Ratio | 1.02 |
Book Value | 102.48 |
Face Value | 1 |
ROE | 11.98% |
Debt | 38,179.01 Cr. |
TATA Steel Revenue and Net Profit
Quarter Ending | Revenue (Crore Rupees) | Net Profit (Crore Rupees) | Y-o-Y Revenue Change (%) | Y-o-Y Net Profit Change (%) |
---|---|---|---|---|
Q2 FY24 (30/09/2023) | 55,682 | -6,511 | -7.01% | -142.63% |
Q1 FY24 (30/06/2023) | 59,489 | -634 | -6.21% | -92.00% |
Q4 FY23 (31/03/2023) | 63,430 | 4,430 | 13.32% | 49.98% |
Q3 FY23 (31/12/2022) | 60,570 | 2,952 | 23.08% | 20.21% |
TATA Steel Shareholding Patterns
Category | Shareholding % | Description |
---|---|---|
Promoters & Promoter Group | 33.90% | Tata Sons Private Limited (TSPL) holds 32.44% of Tata Steel Ltd. and is considered a promoter. |
Foreign Institutional Investors (FIIs) | 20.31% | These are foreign institutions and funds that invest in Indian securities. |
Domestic Institutional Investors (DIIs) | 9.44% | These include mutual funds, insurance companies, and banks that invest in Indian securities. |
Public & Retail Investors | 36.35% | This category comprises individual investors and other non-institutional holders. |
TATA Steel Share Price Target for 2024, 2025, 2026, 2027, 2028
Year | High Estimate (₹) |
---|---|
2024 | 150 |
2025 | 170 |
2026 | 190 |
2027 | 210 |
2028 | 230 |
TATA Steel Share Price Target for 2024
TATA Steel Share Price Target for 2024 is 150.
TATA Steel Share Price Target for 2025
TATA Steel Share Price Target for 2025 is 170.
TATA Steel Share Price Target for 2026
TATA Steel Share Price Target for 2026 is 190.
TATA Steel Share Price Target for 2027
TATA Steel Share Price Target for 2027 is 210.
TATA Steel Share Price Target for 2028
TATA Steel Share Price Target for 2028 is 230.
TATA Steel Dividend History
Year | Dividend per Share (₹) | Dividend Yield (%) | Ex-Date | Announcement Date |
---|---|---|---|---|
2023 | 0.00 | 0.00% | N/A | N/A |
2022 | 11.50 | 10.38% | Jun 15, 2022 | May 4, 2022 |
2021 | 11.50 | 11.71% | Jun 17, 2021 | May 5, 2021 |
2020 | 10.00 | 9.24% | Aug 6, 2020 | Jun 29, 2020 |
2019 | 11.00 | 10.98% | Aug 6, 2019 | Jun 28, 2019 |
TATA Steel Share Split History
Split Date | Ratio | Post-Split Shares per Pre-Split Share | Reason for Split |
---|---|---|---|
July 28, 2022 | 10:1 | 10 | Enhance liquidity and improve stock affordability |
August 11, 2004 | 3:2 | 1.5 | Improve trading activity and market reach |
October 29, 2007 | 1:131.1 | 0.007624 | Simplify capital structure following Corus acquisition |
January 31, 2018 | 1:50.1 | 0.02 | Enhance liquidity and improve stock affordability |
Future Outlook of TATA Steel
Potential Positives:
- Economic Recovery: Global economic recovery could lead to increased demand for steel, particularly in infrastructure projects. India’s own economic growth projections remain positive, further boosting domestic demand.
- Focus on High-End Steels: TATA Steel’s increasing focus on high-end and value-added steel products could fetch higher margins and improve profitability.
- Investments in Growth: Investments in technology, sustainability, and capacity expansion could enhance long-term competitiveness.
- Government Support: The Indian government’s initiatives in infrastructure development and the “Make in India” campaign could benefit TATA Steel.
Read more:
- Ashnisha Industries Share Price Target for 2024, 2025, 2026, 2027, 2028
- Jio Financial Services Share Price Target for 2024, 2025, 2026, 2027, 2028
Risks Associated With Investing in TATA Steel
Category | Risk | Description | Impact |
---|---|---|---|
Financial Risks | Debt burden | TATA Steel carries a moderate debt-to-equity ratio, which can increase vulnerability to economic downturns or higher interest rates. | Potential for financial distress, reduced dividends, and limitations on future investments. |
Cyclical industry | The steel industry is cyclical and prone to fluctuations in demand and prices based on global economic conditions. | Volatile stock price, potential for losses during downturns. | |
Raw material costs | TATA Steel relies heavily on imported iron ore and coking coal, making it vulnerable to price fluctuations in these commodities. | Increased input costs, reduced profitability. | |
Currency volatility | TATA Steel has operations and debt in various currencies, exposing it to potential losses due to currency fluctuations. | Impact on profitability and financial stability. | |
Operational Risks | Supply chain disruptions | Disruptions in the supply chain of raw materials or finished goods can lead to production delays and higher costs. | Reduced production, potential for revenue loss. |
Environmental regulations | Stringent environmental regulations and carbon emission targets could increase compliance costs and impact operations. | Potential for fines, operational restrictions, and reputational damage. | |
Technological advancements | The steel industry is constantly evolving, and failure to adapt to new technologies could lead to competitive disadvantages. | Reduced market share, potential for profit decline. | |
Management Risks | Executive turnover | Sudden changes in leadership or management decisions may negatively impact the company’s strategy and performance. | Uncertainty, potential for loss of confidence from investors. |
Governance concerns | Any lapses in corporate governance or ethical practices could damage the company’s reputation and shareholder value. | Loss of investor trust, potential regulatory sanctions. | |
Market Risks | Competition | TATA Steel faces competition from other domestic and international steel producers. | Pressure on margins, potential for market share loss. |
Global economic slowdown | A slowdown in the global economy could lead to decreased demand for steel and lower prices. | Reduced revenue, potential for profitability decline. |
TATA Steel Competitors
Category | Indian Competitors | International Competitors |
---|---|---|
Large Integrated Steel Producers | JSW Steel | Nippon Steel & Sumitomo Metal Corporation (NSSMC) |
Jindal Steel & Power (JSPL) | POSCO | |
SAIL (Steel Authority of India) | ArcelorMittal | |
Specialty Steel Producers | Mukand Ltd. | Outokumpu |
Tata Metaliks Ltd. | Boasteel Group | |
Mini Steel Producers | Shyam Metalics and Energy Ltd. | Acerinox CNS |
Vizag Steel Limited | SSAB AB | |
Global Trading & Distribution Companies | Noble Group | Trafigura |
Glencore | Mitsubishi Corporation |
DISCLAIMER: We have not provided any real investment advice or stock recommendations. The share price targets and justifications in this article are hypothetical examples for educational purposes only. Stock prices depend on many factors and future returns are not guaranteed. Readers should do their own research before investing. Or consult a registered financial advisor for guidance. We do not guarantee any stock performance or returns. Investing in stocks involves risks.