Stock Performance and Market Context
On 19 Feb 2026, Tata Steel Ltd’s share price surged to Rs.211.35, marking its highest level in the last 52 weeks. Despite a minor intraday dip of 0.57%, the stock outperformed its sector by 0.26%, signalling resilience relative to peers in the ferrous metals industry. The stock is trading comfortably above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a strong upward trend and positive technical momentum.
In contrast, the broader market experienced a sharp reversal on the same day. The Sensex, after opening 235.57 points higher, declined by 530.87 points to close at 83,438.95, down 0.35%. The benchmark index remains 3.26% shy of its own 52-week high of 86,159.02. Notably, the Sensex is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, suggesting mixed signals in the broader market environment.
Strong One-Year Returns and Sector Positioning
Tata Steel Ltd’s one-year performance stands out with a remarkable 52.96% gain, significantly outperforming the Sensex’s 9.87% return over the same period. The stock’s 52-week low was Rs.124.20, highlighting the substantial appreciation investors have witnessed in the last twelve months. This performance places Tata Steel among the top performers in the ferrous metals sector, where it holds the position of the second largest company by market capitalisation at Rs.2,60,906 crores, representing 21.31% of the sector’s total market cap.
The company’s annual sales of Rs.2,25,087.92 crores account for 27.39% of the industry’s revenue, underscoring its dominant market presence. Tata Steel’s scale and sector weightage contribute to its influence on the overall ferrous metals market dynamics.
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Financial Metrics Underpinning the Rally
Tata Steel’s recent rally is supported by strong financial fundamentals. The company boasts a high Return on Capital Employed (ROCE) of 15.66%, reflecting efficient utilisation of capital to generate profits. The half-year ROCE remains robust at 10.20%, while the quarterly Profit After Tax (PAT) surged to Rs.2,787.42 crores, marking a 49.8% increase compared to the previous four-quarter average.
Profit Before Tax excluding other income (PBT less OI) for the quarter stood at Rs.3,507.56 crores, growing 28.8% over the prior four-quarter average. These figures demonstrate consistent profitability and operational strength, contributing to investor confidence and the stock’s upward trajectory.
The company’s net sales have expanded at an annualised rate of 10.80%, indicating healthy long-term growth. Additionally, Tata Steel’s valuation metrics remain attractive, with a ROCE of 9.8 and an enterprise value to capital employed ratio of 1.9, suggesting a fair valuation relative to its capital base.
Institutional Backing and Market Recognition
Institutional investors hold a significant 45.13% stake in Tata Steel Ltd, reflecting strong confidence from entities with extensive analytical resources. This level of institutional ownership often correlates with greater market stability and informed trading activity.
MarketsMojo assigns Tata Steel a Mojo Score of 75.0 and a Mojo Grade of Buy, following a recent downgrade from Strong Buy on 1 Jan 2026. The company ranks among the top 1% of all 4,000 stocks rated by MarketsMojo, highlighting its quality and market standing. The stock’s PEG ratio of 0.1 further indicates that its price appreciation is supported by substantial profit growth, which has increased by 222.2% over the past year.
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Long-Term Market-Beating Performance
Over multiple time horizons, Tata Steel Ltd has demonstrated market-beating returns. Beyond the 52.96% gain in the past year, the stock has outperformed the BSE500 index over the last three years, one year, and three months. This consistent outperformance underscores the company’s ability to deliver value across varying market cycles.
As the second largest company in the ferrous metals sector behind JSW Steel, Tata Steel’s market cap and sales volumes contribute significantly to sector dynamics. Its share of 21.31% of the sector’s market capitalisation and 27.39% of industry sales reflect its pivotal role in shaping sector trends.
Summary of Key Data Points
• New 52-week high: Rs.211.35
• One-year return: 52.96% vs Sensex 9.87%
• Market cap: Rs.2,60,906 crores
• Annual sales: Rs.2,25,087.92 crores
• ROCE: 15.66% (annual), 10.20% (half-year)
• Quarterly PAT: Rs.2,787.42 crores (up 49.8%)
• Institutional holdings: 45.13%
• Mojo Score: 75.0, Mojo Grade: Buy (downgraded from Strong Buy on 1 Jan 2026)
• PEG ratio: 0.1
• Trading above all major moving averages
The attainment of a new 52-week high by Tata Steel Ltd is a testament to its strong financial health, operational efficiency, and favourable market positioning. Despite broader market fluctuations, the stock’s sustained upward momentum reflects the company’s robust fundamentals and sector leadership.
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