Is Tata Steel overvalued or undervalued?
Is Tata Steel Ltd undervalued or overvalued? The key valuation ratios of Tata Steel Ltd's currently when compared to its past seem to suggest it is in the Fair zone.
According to stock market experts, Tata Steel would continue to reap the benefit of better demand in the domestic market due to revival in the auto sector but much will depend upon the steel price revival in the European markets.
Moreover, steel demand across the globe is close to reaching pre-pandemic levels. The Indian government is also pushing its spending on infrastructure, thus driving domestic demand in this segment. This puts Tata Steel first on our list of undervalued bluechip stocks that should be on your watchlist this year.
Tata Steel Ltd. has an average target of 105.43. The consensus estimate represents a downside of -0.73% from the last price of 106.20.
TATA STEEL has shown a Double Bottom Chart Pattern. It is a Bullish Pattern and the Stock could Rise above 400 Levels.
The five-year average inventory days for Tata Steel is 87, while for JSW Steel is 34. This indicates JSW Steel has a better sales performance than Tata Steel.
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Tata Steel vs TCS (Tata Consultancy Services)
| 50% | Promoters |
|---|---|
| 50% | Detractors |
Tata Steel's net debt is only 0.70 times its EBITDA. And its EBIT easily covers its interest expense, being 10.8 times the size.
On the outlook of the Indian steel companies, Siddharth Oberoi, founder, Prudent Equity said, "The Indian steel producers have seen a fall in earnings due to decreased realisation, rising input costs, and low production and demand in the market.
In fact, some of the Tata group stocks figure in the list of multibagger stocks in India. Shares of Automotive Stampings, TTML and Indian Hotel are one of such Tata stocks that have at least doubled shareholders money in last one year.
How is Tata Steel for long term investment?
However, Tata Steel's strong cash flow on the back of robust operating performance is posting confidence on its future perspective. The stock may witness lower levels buying for the target of Rs 100 in the short term and Rs 107 levels for the long term."
Some of the highest dividend-paying blue-chip stocks are Reliance Industries, Asian Paints, Avenue Supermarts, HDFC Bank, Larsen & Toubro, Maruti Suzuki, Hindustan Unilever, Vedanta, IOCL, Hindustan Zinc, Oil & Natural Gas (ONGC), Coal India, GAIL, Oil India, and Tata Steel.
The bonus formula will be applicable till 2024. The minimum and maximum annual bonus payable for 2021-22 will be Rs 41,448 + Rs 20,000 and Rs 4,58,411+ Rs 20,000 respectively.
Promoters held 33.92 per cent stake in the company as of 30-Jun-2022, while FIIs owned 21.95 per cent, DIIs 19.02 per cent.
Steel prices in general continue to move lower, following a historic run up in late 2021 and early 2022. Finding a bottom could come down to three factors, according to some market experts.
In May 2022, the board of directors of Tata Steel decided to split its shares in a ratio of 1:10 ie splitting each share with a face value of Rs 10 into 10 shares having a face value of Re 1. The stock split will happen on July 28.
| Date | Opening price | Change |
|---|---|---|
| January 2025 | Open: 344.426 | Change: -6.04 %▼ |
| February 2025 | Open: 334.723 | Change: 1.03 % ▲ |
| March 2025 | Open: 346.253 | Change: 6.38 % ▲ |
| April 2025 | Open: 371.730 | Change: 3.56 % ▲ |
Because Tata Motors is significantly overvalued, the long-term return of its stock is likely to be much lower than its future business growth, which is estimated to grow 4.15% annually over the next three to five years. Link: These companies may deliever higher future returns at reduced risk.
1. Tata Steel Ltd. One of India's biggest steelmakers, Tata Steel, was founded in 1907 by Jamshed Ji Tata. Tata Steel Limited was earlier known as Tata Iron and Steel Company Limited (TISCO).
Employee Ratings. Tata Steel scored higher in 10 areas: Overall Rating, Culture & Values, Diversity & Inclusion, Work-life balance, Senior Management, Compensation & Benefits, Career Opportunities, CEO Approval, Recommend to a friend and Positive Business Outlook.
Which steel company share is best?
4 Top Steel Stocks in 2022
Steel Stock #1: JSW Steel Ltd. Steel Stock #2: Tata Steel Ltd. Steel Stock #3: Jindal Steel and Power Ltd. Steel Stock #4: Steel Authority of India Ltd.
Tata Group's third-largest company (by market value) — Tata Steel — surpassed the group's crown jewel Tata Consultancy Services (TCS) in terms of profitability.
Tata Steel group is among the top global steel companies with an annual crude steel capacity of 34 million tonnes per annum. It is one of the world's most geographically diversified steel producers, with operations and commercial presence across the world.
| Profit & Loss account of Tata Steel (in Rs. Cr.) | Mar 22 | Mar 20 |
|---|---|---|
| Total Tax Expenses | 11,079.47 | -132.82 |
| Profit/Loss After Tax And Before ExtraOrdinary Items | 33,011.18 | 6,743.80 |
| Profit/Loss From Continuing Operations | 33,011.18 | 6,743.80 |
| Profit/Loss For The Period | 33,011.18 | 6,743.80 |
Tata Steel Ltd. has declared 31 dividends since May 24, 2001.
| Year/Month | Effective Date | Remarks |
|---|---|---|
| Jul 07, 2020 | Aug 06, 2020 | Rs.2.5000 per share(100%)Final Dividend |
| Jun 29, 2020 | Aug 06, 2020 | Rs.10.0000 per share(100%)Final Dividend |
| Apr 25, 2019 | Jul 04, 2019 | Rs.13.0000 per share(130%)Dividend |
| May 16, 2018 | Jul 05, 2018 | Rs.2.5040 per share(100%)Dividend |
Historical dividend payout and yield for Tata Motors (TTM) since 2007. The current TTM dividend payout for Tata Motors (TTM) as of November 23, 2022 is $0.00. The current dividend yield for Tata Motors as of November 23, 2022 is 0.00%. Tata Motors is India's leading automotive manufacturer.
- Reliance Industries. Multinational Conglomerate.
- Tata Consultancy Services (TCS) Information Technology.
- Infosys. Information Technology.
- HDFC Bank. Banking.
| Name | LTP | Chg.(%) |
|---|---|---|
| Bajaj Finance | 6,777.45 | 0.44 |
| Bajaj Finserv | 1,652.85 | 1.17 |
| Bharti Airtel | 837.40 | -1.12 |
| Britannia Inds. | 4,213.05 | 0.70 |
Tirthankar Das, Technical & Derivative Analyst, Retail, Ashika Stock Broking said, "The volume trend has shown an accumulation in Tata Steel for the past few months, thus indicating an increased enthusiasm to push prices higher while the latter lacks volume participation.
When should I buy Tata Steel to get dividend?
2] Tata Steel final dividend record date: The board of directors of Tata Steel have fixed 16th June 2022 as record date for final dividend payment. 3] Dividend payment date: Tata Steel has informed Indian exchanges that final dividend of ₹51, if approved, will be paid on and from 2nd July 2022.
Tata motors is expected to perform better and target is Rs 1000 and above by 2030.
In an attempt to improve domestic steel availability and control steel prices, the government had imposed a 15% export duty on a range of finished steel products in May this year. This led to expectations of lower profits in the steel industry, thus leading to selloff in metal stocks.
Tata Motors stock has been accorded a 'buy' rating by domestic brokerage Motilal Oswal for a target price of Rs 510, signaling potential gains to the tune of over 29%.
| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | Forbes & Co | 693.00 |
| 2. | Baroda Rayon | 368.60 |
| 3. | Kwality Pharma | 331.35 |
| 4. | Suumaya Indust. | 37.30 |
| No | Company Name (Company Code) | NSE Price |
|---|---|---|
| 1 | Tata Consultancy Services Limited (532540) | 3389.65 (0.28%) |
| 2 | Tata Steel Limited (500470) | 106.2 (0.66%) |
| 3 | Tata Motors Limited (500570) | 433.2 (2.31%) |
| 4 | Titan Company Limited (500114) | 2595.4 (-0.57%) |
| 52 Week High/Low | ||
|---|---|---|
| Exchange | High | Low |
| BSE | 138.63 | 82.71 |
| NSE | 138.67 | 82.70 |
| Company | Old Face Value (Rs) | Split Date |
|---|---|---|
| MAFATLAL INDUSTRIES | 10 | Nov 24, 2022 |
| DEV INFORMATION TECH. | 10 | Nov 24, 2022 |
| EASY TRIP PLANNERS | 2 | Nov 18, 2022 |
| PRESSURE SEN | 10 | Nov 15, 2022 |
A company issues bonus shares to increase liquidity of the stock and increase participation of investors. Secondly, the stock price drops to a reasonable range post a bonus issue, which makes it affordable for investors to purchase more shares.
TATA Steel is having good dividend yield. ( appx 4% ). If India as to grow, then Steel companies need to grow, without Infra there is no growth, you can expect minimum 10% CAGR in long term in both this stock. Value buying Price for TATA Steel - 890/-, anytime below this price one can buy lumpsum in tranches.
Will Tata Steel give dividend in 2022?
Tata Steel Ltd.
For the year ending March 2022 Tata Steel has declared an equity dividend of 510.00% amounting to Rs 51 per share. At the current share price of Rs 104.90 this results in a dividend yield of 4.86%. The company has a good dividend track report and has consistently declared dividends for the last 5 years.
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Most Searched Stocks.
| Tata Motors Share Price | 433.20 |
|---|---|
| 03:59 PM | 25 Nov 2022 | 9.50 (0.28%) |
| Tata Steel Share Price | 106.20 |
| 03:59 PM | 25 Nov 2022 | 0.70 (0.66%) |
The site predicted that the price could rise to $832.66 by the end of 2022 and continue to climb in the coming years. WalletInvestor's steel price forecast for 2025 saw the price rising to $1,541.22 by year-end.
2023 Budgets Should Reflect Declines in Metal Prices
Indeed, excluding lead, all non-ferrous and ferrous metal prices appear considerably below price levels seen in 2021. Most suppliers continue to stay quest amidst this decline, opting to place the onus of cost reductions on procurement.
[1] Steel's support of global construction helps fuel a market valued at around $11 trillion and is expected to grow to $14 trillion by 2025. An integral part of infrastructure, steel also helps to connect people to education and social opportunities as well as support health, safety, and security.
The key valuation ratios of Tata Steel BSL Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.
| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | Forbes & Co | 675.20 |
| 2. | Baroda Rayon | 388.00 |
| 3. | Kwality Pharma | 320.70 |
| 4. | Jindal Photo | 346.00 |
The steelmaker has reduced ₹24,340 crore net debt in the financial year 2021-22 (FY22).
Tata Steel Ltd.
Tata Steel had last split the face value of its shares from Rs 10 to Rs 1 in 2022.
- Tata Steel Ltd.
- Adani Enterprises Ltd.
- JSW Steel Ltd.
- Steel Authority of India Ltd.
- Jindal Steel & Power Ltd.
Is Tata Steel giving bonus shares?
The bonus formula will be applicable till 2024. The minimum and maximum annual bonus payable for 2021-22 will be Rs 41,448 + Rs 20,000 and Rs 4,58,411+ Rs 20,000 respectively.
Some of the highest dividend-paying blue-chip stocks are Reliance Industries, Asian Paints, Avenue Supermarts, HDFC Bank, Larsen & Toubro, Maruti Suzuki, Hindustan Unilever, Vedanta, IOCL, Hindustan Zinc, Oil & Natural Gas (ONGC), Coal India, GAIL, Oil India, and Tata Steel.
- Reliance Industries. Multinational Conglomerate.
- Tata Consultancy Services (TCS) Information Technology.
- Infosys. Information Technology.
- HDFC Bank. Banking.
- Alphabet GOOGL.
- ASML Holding ASML.
- Bath & Body Works BBWI.
- Beyond Meat BYND.
- BlackRock BLK.
- Boston Beer SAM.
- Celanese CE.
- Citigroup C.
Tata Steel Ltd.
For the year ending March 2022 Tata Steel has declared an equity dividend of 510.00% amounting to Rs 51 per share. At the current share price of Rs 106.20 this results in a dividend yield of 4.8%. The company has a good dividend track report and has consistently declared dividends for the last 5 years.
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Corporate actions: Bonus history for Tata Steel Ltd.
| Ex-Date | Bonus Ratio | Record Date |
|---|---|---|
| Aug. 11, 2004 | 1:2 | Aug. 12, 2004 |
| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | REC Ltd | 109.05 |
| 2. | Banco Products | 200.25 |
| 3. | Standard Inds. | 26.95 |
| 4. | Natl. Aluminium | 75.40 |
