ScoreWhy is Tata Steel Ltd ?
1
High Management Efficiency with a high ROCE of 15.66%
2
The company has declared Positive results for the last 4 consecutive quarters
- ROCE(HY) Highest at 10.20%
- PAT(Q) At Rs 2,787.42 cr has Grown at 49.8% (vs previous 4Q average)
- PBT LESS OI(Q) At Rs 3,507.56 cr has Grown at 28.8% (vs previous 4Q average)
3
With ROCE of 9.8, it has a Fair valuation with a 1.8 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 25.24%, its profits have risen by 222.2% ; the PEG ratio of the company is 0.1
4
High Institutional Holdings at 45.13%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Market Beating performance in long term as well as near term
- Along with generating 25.24% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
6
With its market cap of Rs 2,38,311 cr, it is the second biggest company in the sector (behind JSW Steel)and constitutes 21.14% of the entire sector
- Its annual Sales of Rs 225,087.92 are 27.36% of the industry
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Tata Steel should be less than 10%
- Overall Portfolio exposure to Ferrous Metals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Ferrous Metals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Tata Steel for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Tata Steel
25.46%
0.84
30.14%
Sensex
-3.39%
-0.25
12.93%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.96%
EBIT Growth (5y)
10.49%
EBIT to Interest (avg)
4.13
Debt to EBITDA (avg)
2.90
Net Debt to Equity (avg)
0.92
Sales to Capital Employed (avg)
1.21
Tax Ratio
31.71%
Dividend Payout Ratio
131.29%
Pledged Shares
0
Institutional Holding
45.13%
ROCE (avg)
15.47%
ROE (avg)
14.71%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
24
Industry P/E
26
Price to Book Value
2.51
EV to EBIT
16.54
EV to EBITDA
10.47
EV to Capital Employed
1.79
EV to Sales
1.45
PEG Ratio
0.11
Dividend Yield
NA
ROCE (Latest)
9.81%
ROE (Latest)
7.84%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend17What is working for the Company
ROCE(HY)
Highest at 10.20%
PAT(Q)
At Rs 2,787.42 cr has Grown at 49.8% (vs previous 4Q average
PBT LESS OI(Q)
At Rs 3,507.56 cr has Grown at 28.8% (vs previous 4Q average
-1What is not working for the Company
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 7,657.59 cr
Loading Valuation Snapshot...
Here's what is working for Tata Steel
Profit After Tax (PAT) - Quarterly
At Rs 2,787.42 cr has Grown at 49.8% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 1,861.18 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 3,507.56 cr has Grown at 28.8% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 2,723.59 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Here's what is not working for Tata Steel
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 7,657.59 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Non Operating Income - Quarterly
Highest at Rs 501.09 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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