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Tata Steel Ltd Stock Analysis

Large Cap
Evaluated by 13287 users | BSE: 500470 | NSE: TATASTEEL |
Steel & Iron Products

Tata Steel Limited is a public limited Company incorporated in India with its registered office in Mumbai, Maharashtra, India. The Company is listed on the BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE). Tata Steel was established in India as Asia’s...

1. Right Stock
Somewhat Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Tata Steel Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
Value Creation Index Colour Code Guide
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Capital Employed 9.86%8.03%9.06%7.08%3.44%6.6%9.39%12.43%8.35%11.64%-
Value Creation Index -0.18-0.43-0.35-0.49-0.75-0.53-0.33-0.11-0.40-0.17-
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 33,93338,19941,71141,78538,22147,99359,61770,61160,43664,86975,200
Y-o-Y Gr. Rt.-12.6%9.2%0.2%-8.5%25.6%24.2%18.4%-14.4%7.3%-
Adjusted EPS (Rs.) 63.0952.6666.151.9917.1533.3650.7783.9158.9295.2159.40
Y-o-Y Gr. Rt.--16.5%25.5%-21.4%-67%94.5%52.2%65.3%-29.8%61.6%-
Book Value per Share (Rs.) 510.4540.17597.95652.29486.33450.33535.91614.35652.32752.65805.54
Adjusted Net Profit 6,4315,3676,7385,2991,7483,4016,11310,1047,09511,46419,194
Net Op. Cash Flow (Rs. Cr.) 10,42411,06912,4334,8527,37211,16711,79115,19313,45429,369-
Debt to Cash Flow from Ops 2.512.492.255.814.182.532.391.953.080.97-
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Tata Steel Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 7.5%11.2%2.9%7.3%
Adjusted EPS 4.7%40.9%23.3%61.6%
Book Value per Share 4.49.11215.4
Share Price 15.3% 32.1% 30.7% 250.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity (%) 12.459.5211.097.992.976.7410.5614.89.4913.6420.46
Operating Profit Margin (%) 35.3630.5331.8425.5221.924.7526.6729.4724.6833.6940.85
Net Profit Margin (%) 18.9514.0516.1512.684.577.0910.2514.3111.7417.6725.52
Debt to Equity 00000.5900.440.410.540.31-
Working Capital Days 175127110103119110111101121130-
Cash Conversion Cycle -37-31-41-212-12-16-27-21-23-
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Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 34.41%
Institutions 41.32%
Non-Institutions 23.43%
Others 0.84%
Pledged *3.513.513.513.513.373.373.373.371.551.55
* Pledged shares as % of Promoter's holding (%)
Past 10 year's financial track record analysis by Moneyworkds4me indicates that Tata Steel Ltd is a average quality company.

Tata Steel Ltd's earnings have grown by 40.9%, whereas share price has appreciated 32.1% CAGR over the past five years, indicating the company’s share price is likely undervalued. However, for specific investment actions please consult your investment advisor.

Tata Steel Ltd share price has appreciated 12.3% annually (CAGR) over the past ten years.

Past 10 years financial track record analysis and assessment of future prospects by Moneyworks4me indicates that Tata Steel Ltd is an average long term investment. However, you need to ensure you buy at a right price to earn good returns.

Tata Steel Limited is a public limited Company incorporated in India with its registered office in Mumbai, Maharashtra, India. The Company is listed on the BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE). Tata Steel was established in India as Asia’s first integrated private steel company in 1907. Today, the company is among the leading global steel companies.

Business area of the

Tata Steel Limited is a public limited Company incorporated in India with its registered office in Mumbai, Maharashtra, India. The Company is listed on the BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE). Tata Steel was established in India as Asia’s first integrated private steel company in 1907. Today, the company is among the leading global steel companies.

Business area of the company

The Company has presence across the entire value chain of steel manufacturing from mining and processing iron ore and coal to producing and distributing finished products. The Company offers a broad range of steel products including a portfolio of high value added downstream products such as hot rolled, cold rolled, coated steel, rebars, wire rods, tubes and wires.

Products

  • Automotive Steels
  • Galvano
  • Tata Agrico
  • Tata Astrum
  • Tata Bearings
  • Tata Ferro Alloys And Minerals Division
  • Tata Steel Industrial By-Products Management Division (IBMD)
  • Tata Pipes
  • Tata Precision Tubes
  • Raw Materials And Responsible Mining
  • Tata Shaktee
  • Tata Steelium
  • Tata Structura
  • Tata Tiscon
  • Tata Wiron

Awards

2013

  • Tata Steel granted Core Supplier status by PSA Peugeot Citroen
  • CII-ITC Sustainability Prize 2012 for Tata Steel

2014

  • Tata Steel conferred the IEI Industry Excellence Awards, 2014
  • Tata Steel felicitated for its excellence in Corporate Governance
  • Tata Steel conferred the prestigious 'Business of the Year' award
  • Tata Steel chosen as one of the 100 Most Valuable Brands 2014
  • Tata Steel wins Asian CSR Leadership Award for Community Development
  • Tata Steel bags the JSPCB awards for Environment Protection
  • Tata Steel wins the Golden Peacock National Training Award, 2014
  • Tata Steel wins at the Dun and Bradstreet Corporate Awards, 2014

2015

  • Tata Steel bags prestigious Kalinga Safety Award
  • Tata Steel wins the Golden Peacock Environment Management Award 2015
  • Tata Steel bags Prime Minister's Trophy for Best Performing Integrated Steel Plant
  • Tata Steel conferred with 15th Annual Greentech Environment Award

2016

  • Tata Steel conferred the National Energy Conservation Award 2016
  • Tata Steel wins 3 Awards for Excellence in Value Engineering
  • Tata Steel awarded for sustainable development in mining sector
  • Tata Steel’s Digwadih Colliery Bags Hindustan Zinc Health & Safety Award from FIMI for Overall Performance for the year 2015-16
  • Tata Steel's Sukinda Chromite Mine Bags Bala Gulshan Tandon Excellence Award from FIMI for Overall Performance for the year 2015-16
  • Tata Steel conferred with the 'Five Star Award'
  • Jharkhand State Pollution Control Board Awards Tata Steel on World Environment Day 2016

2017

  • Tata Steel Joda East Iron Mine bestowed with the Golden Peacock Innovation Management Award 2017
  • Chief Security & Brand Protection, Tata Steel Receives the Life Time Achievement Award at IFSEC, 2017
  • Tata Steel awarded with Prime Minister's Trophy for best performing Integrated Steel Plant
  • Tata Steel bags two Awards for Excellence in Value Engineering
  • Coal washeries of Tata Steel conferred with ‘Best Operating Coal Washery’ award by Coal Preparation Society of India
  • Tata Steel's mines conferred with Aqua Foundation Excellence Award 2017 for Sustainable Development in the Mining Sector
  • Tata Steel conferred the ‘Steel industry website of the year’ award by World Steel Association

2018

  • Tata Steel recognised for Excellence in Biodiversity at the CII-ITC Sustainability Awards 2018
  • Tata Steel conferred “The Tata Affirmative Action Programme Jury award”
  • Tata Steel's Katamati Iron Mine bags 'Pollution Control Excellence Award 2018'
  • Ferro-Alloy & Minerals Division of Tata Steel bags the National Award for Excellence in Water Management
  • Awards galore for iron ore, manganese and chromite mines of Tata Steel
  • Bhelatand Colliery of Tata Steel conferred with FIMI award for Health & Safety
  • Tata Steel Noamundi Iron Mine receives the Safety, Health & Environment (SHE) Excellence Award 2017-18 from CII
  • Tata Steel's Khondbond Iron and Manganese Mine bags 'Grow care India CSR Awards 2018'

2019

  • Tata Steel Kalinganagar bags the National Energy Conservation Award 2019
  • Tata Steel wins IFSEC India Disaster Management Excellence Award
  • Tata Steel’s mines and collieries win National Safety Awards for excellence in safety practices
  • Tata Steel honoured at National CSR Awards for its work on maternal and child health
  • Tata Steel wins three awards at the worldsteel's 10th Steelie Awards
  • Tata Steel’s mines awarded the FIMI Bala Gulshan Tandon Excellence Award
  • Tata Steel's Digital initiatives honoured as ‘Business Transformer’ at the 14th Annual CIO100 Awards
  • Tata Steel’s Ore Mines & Quarries division honoured with CII Safety, Health & Environment award for 2018-19
  • Tata Steel’s Jharia Division honoured with ‘Golden Peacock Eco-Innovation Award 2019’
  • Tata Steel wins the CII Greenco Star Performer Award
  • Tata Steel wins the prestigious Dun & Bradstreet Corporate Award 2019

2020

  • Tata Steel wins two awards at worldsteel’s Steelie Award 2020
  • Tata Steel bestowed with Business Today's 'Best Company to Work For' recognition in 2020
  • Tata Steel recognised for ‘Excellence in Knowledge Management’ by American Productivity & Quality Centre
  • Tata Steel named as one of the 2020 World's Most Ethical Companies by Ethisphere
  • Tata Steel adjudged ‘Firm of the Year - Metals & Mining’ at the 6th CNBC-TV18 India Risk Management Awards

Milestones

  • 1882: JN Tata reads a report by German geologist, Ritter Von Schwarz, titled 'Report on the financial prospects of iron-working in the Chanda district'. The paper indicates the availability of rich deposits of iron ore in Lohara. But the plan is dropped due to unavailability of suitable coal.
  • 1899: Major Mahon or Mohan gives a report that recommends promotion of the steel industry in India. The Viceroy, Lord Curzon, liberalises the licensing system enabling JN Tata to start work.
  • 1900: JN Tata meets Lord George Hamilton, Secretary of State for India, in England, setting the ball rolling for the establishment of a steel plant in India.
  • 1902: Indian geologist PN Bose writes a letter to JN Tata citing the availability of rich deposits of iron ore in Mayurbhanj supported by limestone and coalfields in the vicinity. The Maharaja of Mayurbhanj is willing to extend his support.
  • 1909: RG Wells is appointed as the first General Manager of Tata Iron & Steel Company.
  • 1910: Tata Iron & Steel obtains its first colliery in 1910, adding six more in the course of time.
  • 1911: The first Blast Furnace or the 'A' Blast Furnace begins operations successfully.
  • 1912: The first ingot of steel rolls out of the Sakchi plant. The bar mills commence rolling in the month of October, the second blast furnace becomes operational and 8-hour working day is introduced.
  • 1913: AE Woolsey becomes the second General Manager of Tata Iron & Steel Company.
  • 1914: Barton R Shover becomes the third General Manager of Tata Iron & Steel Company.
  • 1916: Temple W Tutwiler becomes the General Manager of Tata Iron & Steel Company
  • 1918: India´s first steel (coke) plant is established on June 18th as an enterprise financed by Indian capital and built by Indian workers. The plant served as a beacon for India's economic independence and the Swadeshi movement.
  • 1921: The Jamshedpur Technical Institute of Tata Steel is set-up with 23 students. The institute seeks to replace foreign technical experts with their Indian counterparts. Furnished with sophisticated equipment, the institute continues to be one of the best in the country.
  • 1924: Manufacture of steel by the Duplex process begins.
  • 1924: CA Alexander becomes the General Manager of Tata Steel.
  • 1930: In 1930 JL Keenan becomes the General Manager of Tata Steel.
  • 1932: It was DM Madan, Chief Accountant, Tata Iron and Steel Company, who first conceived the idea of observing and celebrating an annual gathering to commemorate the birth anniversary of J.N. Tata.
  • 1938: Jehangir Ghandy becomes the first Indian General Manager of Tata Steel.
  • 1938: JRD Tata becomes the Chairman of Tata Steel.
  • 1941: Manufacture of special steel for war purposes begins. In 1942, the Tatanagar Tank is built.
  • 1955: Agreement signed with Kaiser Engineers for a 2 million tonne expansion programme.
  • 1956: Joint consultations for 'working together' is introduced.
  • 1958: Jubilee Park is dedicated to the nation on completion of 50 years of Tata Steel’s existence.
  • 1965: SK Nanavati becomes the Director-in-Charge and later becomes the Managing Director in 1970.
  • 1967: IBM 1401 systems introduced.
  • 1972: In 1972 RS Pande becomes the Managing Director.
  • 1974: Russi Mody becomes the Managing Director.
  • 1982-83: Basic Oxygen Furnace Shop - LD1 inaugurated.
  • 1987: The Tata Football Academy is established to inculcate the spirit of sports and games among the youth.
  • 1991: JRD Tata dedicates a sprawling multi-crore sports complex to the citizens of Jamshedpur.
  • 1992: JRD Tata is conferred the Bharat Ratna for his contribution to aviation and industry on January 26, 1992.
  • 1993: Mr Ratan Tata takes over as Chairman from JRD Tata on April 19, 1993.
  • 1994-1996: Production of stamp charged batteries 6&7 begins in 1994. The 'G' Blast Furnace gets commissioned in 1992.
  • 2000: Padma Bhushan for Ratan N Tata
  • 2007: London-based steel manufacturer Corus Group is acquired on April 2, 2007 and Tata Steel Europe is established. 
  • 2008: Commemorating Tata Steel's Centenary year, the Indian Prime Minister, D. Manmohan Singh, unveils the Centenary Postage Stamp.
  • 2012: Tata Steel creates history by becoming the first integrated steel company in the world to be awarded the coveted Deming Grand Prize.
  • 2016: The first phase of Kalinganagar Project - Tata Steel’s second integrated steel plant in India starts commercial production in May 2016.
  • 2017: Tata Steel strengthens position in low-carbon future technology
  • 2018: Tata Steel inaugurates the state-of-the-art Rain Water Harvesting Project Phase-II at Joda
  • 2019: Tata Steel signs MoU with TERI for Phase III of Green School Project in Jharkhand and Odisha
  • 2020: Tata Steel introduces Agile Working Models
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
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