Tata Steel Limited (TATASTEEL) AI Stock Analysis

• Market Cap: ₹2.09T
• Dividend Yield: 2.15%
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 46.0
• Beta (1Y): 1.36
• Revenue Growth: -3.34%
• EPS Growth: N/A
• Country: IN
• Employees: 121,869
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 1.66
• Shares Outstanding: 12,483,442,000
• 10 Day Avg. Volume: 1,269,536
• 30 Day Avg. Volume: 1,358,205
• PEG Ratio: -0.32
• Price to Book (P/B): 2.10
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 24.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹175.67
• Price Target Upside: 4.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 64 Neutral
• Price Target: ₹167.00 ▼(-0.27% Downside)

Tata Steel's overall score reflects a solid financial base and positive earnings call insights, tempered by technical indicators suggesting caution and a high valuation. The company's focus on cost transformation and operational efficiencies is promising, but market challenges and high P/E ratio weigh on the score.

Tata Steel Limited Business Overview & Revenue Model

Company Description

Tata Steel Limited manufactures and distributes steel products in India and internationally. It operates in Tata Steel India, Tata Steel Long Products, Other Indian Operations, Tata Steel Europe, Other Trade Related Operations, South-East Asian operations, and Rest of the World segments. The company offers hot-rolled (HR) and cold-rolled (CR) coated steel coils and sheets, precision tubes, tire bead wires, spring wires, and bearings, as well as auto ancillaries for the automotive market; and galvanized iron wires, agriculture and garden tools, and conveyance tubes, as well as fencing, farming, and irrigation equipment for the agriculture market. It also provides rebars, steel doors and windows, roofing sheets, plumbing pipes, tubes, prefabricated houses, water kiosks, modular toilets, office cabins, rooftop houses, EV charging stations, rebars and corrosion-resistance steels, cut and bend bars, PC strands, and ground granulated blast furnace slags for individual house builders, corporate and government bodies, infrastructure companies, and housing and commercial customers in the construction market. In addition, the company offers CR, coated, HR, tube, wire rod, ferro chrome and manganese, boiler tube, pipes, ferroshot, blast furnace slag, coal tar, and metallic coated coil and sheet products for use in panels and appliances, fabrication and capital goods, furniture, Liquid Petroleum Gas cylinders, solar, heavy vehicles, consumer and industrial packaging, and welding applications, as well as the process industries, such as cement, power, and steel in the industrial and general engineering markets. The company was incorporated in 1907 and is based in Mumbai, India.

How the Company Makes Money

Tata Steel Limited makes money primarily through the production and sale of steel products. Its revenue model is based on selling a diverse portfolio of steel products, including hot-rolled, cold-rolled, coated, and alloy steels, to various industries such as automotive, construction, consumer goods, and engineering. Key revenue streams include the sale of steel in domestic markets in India and international markets through its subsidiaries and joint ventures, which include operations in Europe and Southeast Asia. The company also earns revenue from its mining activities, producing raw materials like iron ore and coal, which are essential for steel production. Strategic partnerships, technological advancements, and a focus on sustainability and recycling also play significant roles in enhancing operational efficiency and reducing costs, thereby contributing to Tata Steel's earnings.

Tata Steel Limited Financial Statement Overview

Summary

Tata Steel shows a mixed financial performance with strong balance sheet stability and cash flow generation. However, challenges exist in maintaining consistent profitability and revenue growth due to the cyclical nature of the steel industry.

Income Statement

Tata Steel's revenue has shown fluctuations over the past five years, with a notable decline in 2024 and 2025. The gross profit margin has remained relatively stable, but the net profit margin has experienced volatility, particularly with a significant loss in 2024. The EBIT and EBITDA margins suggest operational efficiency, though they have experienced a downward trend recently. The revenue growth rate has been inconsistent, reflecting challenges in maintaining steady growth.

Balance Sheet

Tata Steel maintains a strong equity position with a reasonable debt-to-equity ratio, despite some increases in total debt over the years. The return on equity was positive in most years but dropped during 2024 due to net losses. The equity ratio indicates a solid equity base, which is a strength for the company. However, the industry remains capital intensive, and managing leverage effectively is crucial.

Cash Flow

The company's cash flow has been robust, with consistent operating cash flows. The free cash flow has experienced significant fluctuations, and the free cash flow growth rate was negative in 2024. The operating cash flow to net income ratio suggests strong cash generation relative to net income, but the free cash flow to net income ratio highlights challenges in converting revenue into free cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.19T	2.19T	2.29T	2.43T	2.44T	1.56T
Gross Profit	1.14T	1.14T	1.16T	1.20T	1.54T	941.03B
EBITDA	238.51B	239.65B	212.88B	296.50B	637.20B	275.13B
Net Income	34.21B	34.21B	-44.37B	87.60B	401.54B	74.90B
Balance Sheet
Total Assets	2.79T	2.79T	2.73T	2.88T	2.85T	2.45T
Cash, Cash Equivalents and Short-Term Investments	135.46B	135.46B	88.55B	184.23B	260.79B	141.42B
Total Debt	948.01B	948.01B	870.82B	848.93B	755.54B	885.01B
Total Liabilities	1.88T	1.88T	1.81T	1.83T	1.68T	1.68T
Stockholders Equity	911.70B	911.70B	920.36B	1.03T	1.14T	742.39B
Cash Flow
Free Cash Flow	0.00	78.41B	20.94B	75.41B	338.59B	373.48B
Operating Cash Flow	0.00	235.12B	203.01B	216.83B	443.81B	443.27B
Investing Cash Flow	0.00	-141.73B	-142.51B	-186.80B	-108.81B	-93.23B
Financing Cash Flow	0.00	-70.02B	-110.97B	-69.81B	-234.01B	-370.90B

Tata Steel Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 167.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TATASTEEL, the sentiment is Neutral. The current price of 167.45 is below the 20-day moving average (MA) of 168.82, above the 50-day MA of 163.15, and above the 200-day MA of 148.22, indicating a neutral trend. The MACD of 2.71 indicates Positive momentum. The RSI at 50.39 is Neutral, neither overbought nor oversold. The STOCH value of 46.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:TATASTEEL.

Tata Steel Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NMDC	75 Outperform	₹659.30B	10.08	22.03%	4.40%	18.30%	10.95%
JSWSTEEL	73 Outperform	₹2.76T	56.94	4.41%	0.25%	-3.82%	-34.04%
SAIL	66 Neutral	₹541.31B	17.84	4.03%	1.22%	-0.58%	3.36%
UPL	64 Neutral	₹546.34B	46.65	2.79%	0.93%	8.30%	―
TATASTEEL	64 Neutral	₹2.09T	46.01	―	2.15%	-3.34%	―
JINDALSTEL	57 Neutral	₹1.05T	35.17	5.96%	0.19%	-5.12%	-47.40%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Tata Steel Limited Corporate Events

Tata Steel Acquires Equity in Wholly Owned Subsidiary

Tata Steel Limited has announced the acquisition of 124,62,68,657 equity shares in its wholly owned foreign subsidiary, T Steel Holdings Pte. Ltd, for a total of USD 125.25 million. This acquisition reinforces Tata Steel’s commitment to strengthening its international operations and maintaining its subsidiary’s status as a wholly owned entity, which could enhance its market positioning and operational capabilities.

Tata Steel Concludes 118th Annual General Meeting with Key Disclosures

Tata Steel Limited held its 118th Annual General Meeting on July 2, 2025, conducted via video conferencing. The meeting included discussions on various business matters, with voting results and the Scrutinizer’s Report made available on the company’s website. This event underscores Tata Steel’s commitment to transparency and regulatory compliance, potentially impacting its stakeholder relations and reinforcing its industry position.

Tata Steel’s 118th AGM Highlights Transparency and Compliance

Tata Steel Limited held its 118th Annual General Meeting on July 2, 2025, conducted via video conferencing. The meeting included discussions on various business matters, with voting results and the Scrutinizer’s Report made available on the company’s website. This event underscores Tata Steel’s commitment to transparency and regulatory compliance, potentially reinforcing its market position and stakeholder trust.

Tata Steel Bolsters Global Operations with Major Subsidiary Investment

Tata Steel Limited has announced the acquisition of 179,10,44,776 equity shares in its wholly owned subsidiary, T Steel Holdings Pte. Ltd, for USD 180 million. This move is part of a larger strategy to infuse up to USD 2.5 billion into the subsidiary during the fiscal year 2025-26, reinforcing Tata Steel’s commitment to strengthening its international operations and market positioning.