ScoreWhy is Tata Steel Ltd ?
1
High Management Efficiency with a high ROCE of 15.66%
2
Healthy long term growth as Net Sales has grown by an annual rate of 11.14% and Operating profit at 23.30%
3
With a growth in Net Profit of 62.5%, the company declared Very Positive results in Sep 25
- The company has declared positive results for the last 3 consecutive quarters
- OPERATING PROFIT TO INTEREST(Q) Highest at 5.01 times
- PBT LESS OI(Q) At Rs 4,279.33 cr has Grown at 109.7% (vs previous 4Q average)
- ROCE(HY) Highest at 10.20%
4
With ROCE of 9.8, it has a Attractive valuation with a 1.7 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 13.95%, its profits have risen by 124.1% ; the PEG ratio of the company is 0.2
5
High Institutional Holdings at 44.88%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 0.9% over the previous quarter.
Real-Time Research ReportHow much should you buy?
- 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, Medium Return
Absolute
Risk Adjusted
Volatility
Tata Steel
13.95%
0.51
27.56%
Sensex
4.89%
0.41
11.85%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
11.14%
EBIT Growth (5y)
23.30%
EBIT to Interest (avg)
4.26
Debt to EBITDA (avg)
2.90
Net Debt to Equity (avg)
0.92
Sales to Capital Employed (avg)
1.21
Tax Ratio
40.09%
Dividend Payout Ratio
-101.20%
Pledged Shares
0
Institutional Holding
44.88%
ROCE (avg)
15.47%
ROE (avg)
14.71%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
29
Industry P/E
27
Price to Book Value
2.26
EV to EBIT
16.89
EV to EBITDA
10.48
EV to Capital Employed
1.66
EV to Sales
1.36
PEG Ratio
0.23
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
Bullish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend30What is working for the Company
OPERATING PROFIT TO INTEREST(Q)
Highest at 5.01 times
PBT LESS OI(Q)
At Rs 4,279.33 cr has Grown at 109.7% (vs previous 4Q average
ROCE(HY)
Highest at 10.20%
PAT(9M)
Higher at Rs 7,095.79 Cr
NET SALES(Q)
Highest at Rs 58,689.29 cr
PBDIT(Q)
Highest at Rs 8,896.54 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 15.16%
EPS(Q)
Highest at Rs 2.49
-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
Operating Profit to Interest - Quarterly
Highest at 5.01 times and Grown
each quarter in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 4,279.33 cr has Grown at 109.7% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 2,040.67 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 3,418.67 cr has Grown at 181.8% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 1,213.29 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 4,279.33 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Net Sales - Quarterly
Highest at Rs 58,689.29 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 8,896.54 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 15.16%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit After Tax (PAT) - Quarterly
Highest at Rs 3,418.67 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 2.49
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
