ScoreWhy is Tata Steel Ltd ?
1
Poor long term growth as Operating profit has grown by an annual rate 1.07% of over the last 5 years
2
The company has declared Positive results for the last 5 consecutive quarters
- OPERATING PROFIT TO INTEREST(Q) Highest at 5.48 times
- PBT LESS OI(Q) At Rs 4,901.95 cr has Grown at 52.9% (vs previous 4Q average)
- NET SALES(Q) Highest at Rs 63,270.13 cr
3
With ROCE of 12.2, 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 22.84%, its profits have risen by 203.8% ; the PEG ratio of the company is 0.1
4
High Institutional Holdings at 45.91%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 0.78% over the previous quarter.
5
Market Beating Performance
- Even though the market (BSE500) has generated negative returns of -0.28% in the last 1 year, the stock has been able to generate 22.84% returns
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
22.84%
0.84
27.21%
Sensex
-6.17%
-0.47
13.26%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.56%
EBIT Growth (5y)
1.07%
EBIT to Interest (avg)
4.08
Debt to EBITDA (avg)
2.88
Net Debt to Equity (avg)
0.80
Sales to Capital Employed (avg)
1.24
Tax Ratio
31.83%
Dividend Payout Ratio
46.23%
Pledged Shares
0
Institutional Holding
45.91%
ROCE (avg)
15.27%
ROE (avg)
12.31%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
26
Price to Book Value
2.32
EV to EBIT
14.23
EV to EBITDA
9.28
EV to Capital Employed
1.74
EV to Sales
1.37
PEG Ratio
0.10
Dividend Yield
2.10%
ROCE (Latest)
12.21%
ROE (Latest)
11.26%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend18What is working for the Company
OPERATING PROFIT TO INTEREST(Q)
Highest at 5.48 times
PBT LESS OI(Q)
At Rs 4,901.95 cr has Grown at 52.9% (vs previous 4Q average
NET SALES(Q)
Highest at Rs 63,270.13 cr
PBDIT(Q)
Highest at Rs 9,828.66 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 15.53%
PAT(Q)
At Rs 3,135.34 cr has Grown at 26.9% (vs previous 4Q average
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Tata Steel
Operating Profit to Interest - Quarterly
Highest at 5.48 times
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 4,901.95 cr has Grown at 52.9% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 3,206.18 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Net Sales - Quarterly
Highest at Rs 63,270.13 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 9,828.66 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 15.53%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 4,901.95 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 3,135.34 cr has Grown at 26.9% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 2,470.80 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
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