ScoreWhy is Tata Steel Ltd ?
1
Poor long term growth as Operating profit has grown by an annual rate -8.63% of over the last 5 years
2
The company has declared Positive results for the last 6 consecutive quarters
- OPERATING CF(Y) Highest at Rs 35,064.46 Cr
- PAT(Latest six months) At Rs 5,668.42 cr has Grown at 54.15%
- ROCE(HY) Highest at 12.42%
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 17.72%, its profits have risen by 144.7% ; the PEG ratio of the company is 0.1
4
High Institutional Holdings at 46.01%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Market Beating Performance
- The stock has generated a return of 17.72% in the last 1 year, much higher than market (BSE500) returns of 4.11%
6
With its market cap of Rs 2,36,313 cr, it is the second biggest company in the sector (behind JSW Steel)and constitutes 17.99% of the entire sector
- Its annual Sales of Rs 239,756.11 are 27.34% 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
17.72%
0.67
26.51%
Sensex
-2.63%
-0.19
13.57%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.67%
EBIT Growth (5y)
-8.63%
EBIT to Interest (avg)
4.01
Debt to EBITDA (avg)
2.88
Net Debt to Equity (avg)
0.80
Sales to Capital Employed (avg)
1.24
Tax Ratio
32.71%
Dividend Payout Ratio
46.23%
Pledged Shares
0
Institutional Holding
46.01%
ROCE (avg)
15.27%
ROE (avg)
12.31%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
25
Price to Book Value
2.30
EV to EBIT
13.54
EV to EBITDA
8.73
EV to Capital Employed
1.72
EV to Sales
1.32
PEG Ratio
0.14
Dividend Yield
2.13%
ROCE (Latest)
12.21%
ROE (Latest)
11.26%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend16What is working for the Company
OPERATING CF(Y)
Highest at Rs 35,064.46 Cr
PAT(Latest six months)
At Rs 5,668.42 cr has Grown at 54.15%
ROCE(HY)
Highest at 12.42%
DEBT-EQUITY RATIO(HY)
Lowest at 0.90 times
DEBTORS TURNOVER RATIO(HY)
Highest at 46.84 times
-2What is not working for the Company
PAT(Q)
At Rs 2,533.09 cr has Fallen at -11.9% (vs previous 4Q average
Loading Valuation Snapshot...
Here's what is working for Tata Steel
Operating Cash Flow - Annually
Highest at Rs 35,064.46 Cr and Grown
each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 0.90 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio- Half Yearly
Highest at 46.84 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Tata Steel
Profit After Tax (PAT) - Quarterly
At Rs 2,533.09 cr has Fallen at -11.9% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 2,876.40 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
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."
