Why Tata Steel share price is low?
This led to expectations of lower profits in the steel industry, thus leading to selloff in metal stocks. Global brokerage firms Citi and JP Morgan had slashed the target price of Tata Steel citing fears of global recession.
On the basis of EV/EBITDA also, Tata Steel sounds good as its EV/EBITDA is 2.87 times which is comparatively lower than JSW Steel's 5.98 times. Steel prices fell sharply in June 2022 post imposition of 15 per cent export duty but average realisation stood higher by 6-12% QoQ.
#2 Reduced JLR sales puts pressure on Tata Motors
For the quarter ended 30 September 2022, JLR reported total sales of 88,121 units. This is 4.9% lower on a year on year (YoY) basis. The sales have seen a sharp decline because of the above mentioned reasons.
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.
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.
Tata Steel Ltd. quote is equal to 106.200 INR at 2022-11-27. Based on our forecasts, a long-term increase is expected, the "Tata Steel Ltd" stock price prognosis for 2027-11-19 is 584.136 INR. With a 5-year investment, the revenue is expected to be around +450.03%.
TATA STEEL has shown a Double Bottom Chart Pattern. It is a Bullish Pattern and the Stock could Rise above 400 Levels.
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.
- Tata Steel Ltd.
- Adani Enterprises Ltd.
- JSW Steel Ltd.
- Steel Authority of India Ltd.
- Jindal Steel & Power Ltd.
Price-To-Earnings vs Fair Ratio: TATASTEEL is good value based on its Price-To-Earnings Ratio (4.5x) compared to the estimated Fair Price-To-Earnings Ratio (15.9x).
Can I invest in Tata?
You will pay cash to buy those Tata stocks. This cash first needs to be sent (deposited) to your broker. The most common way you can deposit your money is by bank transfer and using a credit/debit card. At some brokers, you can deposit from different electronic wallets like Paypal, e.g. at eToro.
Homegrown steel major Tata Steel on Monday reported a consolidated profit after tax (PAT) of ₹1,514 crore for the quarter ended September 2022 on the back of higher costs and weak operational performance amid a global economic slowdown.
Subscribe to Weekly Highlights. Steel price is forecast to fall in 2022 and beyon as underperforming China's demand, risks of recession in Europe and slowing global economic growth to depress demand.
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.
Tata Steel vs JSW Steel Profit Margins (2017-2022)
It's also leading in terms of net profit margin with a five-year average of 9.3% compared to 8.2% of Tata Steel. Lower operating and non-operating costs have helped JSW Steel maintain higher profit margins than Tata Steel.
[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.
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.
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.
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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%) |
In the past 12 months, Tata Steel Ltd. has declared an equity dividend amounting to Rs 51.00 per share. At the current share price of Rs 106.20, this results in a dividend yield of 48.02%. Adjusting for Bonus/Splits the dividend yield is 4.80%. See all forthcoming dividends Check out stocks with top dividend.
Which Tata share is profitable?
Shares of Orient Hotel, Tata Elxsi, Tata Power, Tejas Networks, Tata Motors, Nelco, TRF, etc. have delivered more than 50 per cent return to its positional shareholders in last one year.
Steel finds usage in various sectors including construction and infrastructure, engineering, automobiles, etc. It is an important engineering and construction material. Steel is crucial in the development of the infrastructure of any economy. Before going further, we must know some raw materials used in steel making.
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.
Future Of Steel Stocks In India
In the financial year 2022, the demand for Steel is expected to see a growth of 17% to 110 million tonnes, and the leading cause of this rise is the rising construction activities all across the Indian map. In May 2022, Tata Steel came up with a CAPEX of Rs 12,000 Crores.
| 52 Week High/Low | ||
|---|---|---|
| Exchange | High | Low |
| BSE | 138.63 | 82.71 |
| NSE | 138.67 | 82.70 |
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.
Sir Dorabji Tata Trust and Sir Ratan Tata Trust are the two biggest shareholders of Tata Sons, with a combined stake of around 50%, while Pallonji Shapoorji Mistry was the largest individual shareholder.
FAQs about Tata Steel share
Tata Steel share price was Rs 106.40 as on 25 Nov, 2022, 12:23 PM IST. Tata Steel share price was up by 0.85% based on previous share price of Rs. 105.45. In last 1 Month, Tata Steel share price moved up by 4.94%.
| S.No. | Name | P/E |
|---|---|---|
| 1. | Mindtree | 29.96 |
| 2. | Info Edg.(India) | 17.09 |
| 3. | Bharat Dynamics | 28.39 |
| 4. | Natco Pharma | 25.41 |
1. Tata Steel Ltd. Tata Steel is the world's second-most geologically diversified steelmaker, with a yearly crude steel capacity of 34 million tons every annum. The organization is among those few steel operations that are entirely integrated – from mining to the manufacturing and trading of finished products.
Which Tata Share is best to buy in 2022?
With a rally of 105.50 per cent, TRF is the top grosser among the Tata group stocks.
- Reliance Industries. Multinational Conglomerate.
- Tata Consultancy Services (TCS) Information Technology.
- Infosys. Information Technology.
- HDFC Bank. Banking.
Tata Steel has fixed July 29, 2022 as the record date for the purpose of sub-division of Ordinary (equity) Shares. The ex-date for sub-division of the Ordinary (equity) Shares of the Company is July 28, 2022. The new Ordinary (equity) Shares of the Company of face value ₹1/- each will start trading from the ex-date.
The stock split in the ratio of 1:10 has awarded 10 shares in the hands of shareholders for each share they owned. Hence, the value of the Tata Steel stock has gone down by 1/10th after the stock split.
The flat-rolled steel market is forecast to resume a downward trend next year, due to factors including scrap prices “holding well below recent peaks” and “competitive import prices as steel markets will trend lower globally on weakening demand and falling raw material costs,” Frediani added.
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.
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.
Corporate actions: Dividend history for Tata Steel Ltd.
Tata Steel Ltd. has declared 31 dividends since May 24, 2001.
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.
But due to fears of lower demand especially from China, global steel prices have been falling, which soared as a result of the Russia-Ukraine war. This will impact the profitability of the company in the near to mid-term, which will create a hurdle for achieving a higher target per share.
Who is the competitor of Tata Steel?
| Name | Last Price | Market Cap. (Rs. cr.) |
|---|---|---|
| JSW Steel | 725.95 | 175,478.12 |
| Tata Steel | 105.50 | 128,907.02 |
| Hindalco | 438.35 | 98,505.77 |
| Jindal Steel | 522.00 | 53,248.60 |
...
Tata Steel Vs SAIL – Revenue Growth.
| Year | Tata Steel Revenue (Rs. Cr.) | SAIL Revenue (Rs. Cr.) |
|---|---|---|
| 2020 | 148,972 | 61,664 |
| 2019 | 157,669 | 66,973 |
| 2018 | 123,249 | 57,496 |
| CAGR (%) | 14.63% | 12.47% |
| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | EKI Energy | 1427.90 |
| 2. | Ksolves India | 422.95 |
| 3. | Tips Industries | 1797.00 |
| 4. | Tanfac Inds. | 1034.40 |
Tax rate and share price is inversely proportionate to each other. Hence, when a tax on any commodity is increased, the share price of the producing company is bound to fall. This happened with the share price of Tata Steel.
Since steel stocks are cyclical, the best time to buy them is at the start of an economic expansion. The best time to sell them is just before the economy begins to slow down. Investing in a steel stock at the peak of an economic cycle could result in a huge chunk of the investment being wiped it.
Demand for steel grew 4.5% in 2021 and will likely grow 2.2% through 2022. It is no surprise that with limited inventory and strong demand, steel prices are expected to go up. That's benefiting steel 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%.
According to Koustav Mazumdar, an associate director with the agency, the onset of the weak demand season because of the monsoon and less-lucrative exports mean domestic steel prices should begin easing and ultimately move towards Rs 60,000/tonne by March 2023, down from the Rs 76,000/tonne peak it scaled in just last ...
Tata Steel has fixed July 29, 2022 as the record date for the purpose of sub-division of Ordinary (equity) Shares. The ex-date for sub-division of the Ordinary (equity) Shares of the Company is July 28, 2022. The new Ordinary (equity) Shares of the Company of face value ₹1/- each will start trading from the ex-date.
