Tata Steel Limited (TATASTEEL) AI Stock Analysis

• Market Cap: ₹2.24T
• Dividend Yield: 2.16%
• Average Volume (3M): 1.52M
• Price to Earnings (P/E): 49.3
• Beta (1Y): 1.34
• Revenue Growth: -0.42%
• EPS Growth: 132.70%
• Country: IN
• Employees: 121,869
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 2.46
• Shares Outstanding: 12,483,442,000
• 10 Day Avg. Volume: 1,992,314
• 30 Day Avg. Volume: 1,523,274
• PEG Ratio: -0.32
• Price to Book (P/B): 2.10
• Price to Sales (P/S): 0.87
• 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: ₹194.50
• Price Target Upside: 16.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ₹197.00 ▲(18.03% Upside)

Tata Steel's overall stock score is driven by strong technical indicators and positive earnings call sentiment, particularly in the Indian market. However, high valuation metrics and financial performance challenges, especially in Europe, weigh on the score. The company's ability to manage these challenges while capitalizing on its operational strengths will be crucial for future performance.

Positive Factors

Cost Transformation Success

Tata Steel's successful cost transformation program enhances operational efficiency and profitability, providing a competitive edge in cost management.

Strong Indian Operations

Robust growth in Indian operations signifies strong market demand and operational capability, reinforcing Tata Steel's position in a key market.

Tata BlueScope Steel Acquisition

Acquiring full control of Tata BlueScope Steel is expected to be value-accretive, enhancing synergies and expanding product offerings.

Negative Factors

Challenges in UK Market

Persistent challenges in the UK market, including widening losses, could strain Tata Steel's profitability and require strategic adjustments.

Pressure on European Operations

Rising material costs in Europe impact margins and highlight the need for effective cost management strategies to maintain competitiveness.

Global Macroeconomic Uncertainty

Global macroeconomic uncertainties pose risks to Tata Steel's operations, affecting demand and pricing in international markets.

Tata Steel Limited Business Overview & Revenue Model

Company Description

Tata Steel Limited is one of the largest steel manufacturing companies in the world, headquartered in Mumbai, India. As a flagship company of the Tata Group, Tata Steel operates in various sectors, including automotive, construction, and infrastructure, providing a wide range of steel products such as flat and long products, tubes, and steel solutions. The company has a significant global presence, with operations in several countries, including the United Kingdom, the Netherlands, and South East Asia, and is committed to sustainable practices within the steel industry.

How the Company Makes Money

Tata Steel generates revenue primarily through the production and sale of steel products. The company operates on a vertically integrated model, which means it is involved in every stage of the steel production process, from raw material extraction to manufacturing finished products. Key revenue streams include sales of flat products (like hot-rolled and cold-rolled steel), long products (such as bars and rods), and specialized steel products for various industries. Tata Steel also benefits from its strategic partnerships and joint ventures, enhancing its market reach and operational capabilities. Additionally, the company engages in value-added services, including processing and distribution, which contribute to its revenue. Factors such as global steel demand, pricing fluctuations in raw materials like iron ore and coal, and operational efficiency play significant roles in Tata Steel's overall earnings.

Tata Steel Limited Financial Statement Overview

Summary

Tata Steel exhibits a mixed financial performance with strengths in balance sheet stability and cash flow generation. However, challenges in maintaining consistent profitability and revenue growth are evident, influenced by 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	2.17T	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	245.27B	239.65B	212.88B	296.50B	637.20B	275.13B
Net Income	45.39B	34.21B	-44.37B	87.60B	401.54B	74.90B
Balance Sheet
Total Assets	0.00	2.79T	2.73T	2.88T	2.85T	2.45T
Cash, Cash Equivalents and Short-Term Investments	100.48B	100.48B	88.55B	184.23B	260.79B	141.42B
Total Debt	0.00	948.01B	870.82B	848.93B	755.54B	885.01B
Total Liabilities	-913.53B	1.88T	1.81T	1.83T	1.68T	1.68T
Stockholders Equity	913.53B	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: Negative
• Last Price: 166.90
• 50DMA: Negative
• 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 Negative. The current price of 166.9 is below the 20-day moving average (MA) of 173.13, below the 50-day MA of 173.65, and above the 200-day MA of 157.24, indicating a neutral trend. The MACD of -2.18 indicates Positive momentum. The RSI at 39.82 is Neutral, neither overbought nor oversold. The STOCH value of 33.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₹653.14B	9.30	―	4.38%	20.05%	15.58%
SAIL	73 Outperform	₹570.43B	22.32	―	1.21%	6.45%	1.13%
TATASTEEL	71 Outperform	₹2.24T	49.26	―	2.16%	-0.42%	132.70%
UPL	68 Neutral	₹629.58B	28.61	―	0.81%	8.14%	―
JSWSTEEL	66 Neutral	₹2.89T	47.82	―	0.24%	2.14%	20.37%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JINDALSTEL	57 Neutral	₹1.10T	39.92	―	0.19%	-2.21%	-46.30%

Tata Steel Limited Corporate Events

Tata Steel Challenges Demand Over Chrome Ore Dispatch Shortfall

Tata Steel Limited has received a demand letter from the Office of Deputy Director of Mines, Jajpur, regarding an alleged shortfall in the dispatch of chrome ore from its Sukinda Chromite Block. This has resulted in a demand of over ₹2410 crore based on the sale value of the shortfall and appropriation of performance security. Tata Steel disputes the state’s claims and plans to challenge the demand legally, citing a lack of justification. The company has previously contested a similar demand for the previous year, which is currently under interim stay by the Orissa High Court.

Tata Steel Updates Registrar and Transfer Agent Contact Details

Tata Steel Limited has announced an update regarding the contact details of its Registrar and Transfer Agent, MUFG Intime India Private Limited. Effective October 1, 2025, the email ID for investor communications will change, allowing shareholders to raise queries or service requests electronically. This update aims to streamline communication and enhance service efficiency for stakeholders.

Tata Steel Acquires Equity Stake in T Steel Holdings

Tata Steel Limited has announced the acquisition of 353,23,38,309 equity shares in its wholly owned foreign subsidiary, T Steel Holdings Pte. Ltd, for USD 355 million. This strategic move reinforces Tata Steel’s commitment to strengthening its international operations and maintaining its market position, with potential implications for stakeholders in terms of enhanced global reach and operational capacity.

Tata Steel’s Tax Reassessment Notice Annulled by Bombay High Court

Tata Steel Limited has announced a significant legal development regarding a tax reassessment issue. The Bombay High Court has annulled a notice from the Income Tax Department concerning a ₹25,185.51 crore loan waiver, citing procedural errors. This decision potentially alleviates a substantial financial burden for Tata Steel, although future legal challenges could arise if tax authorities revisit the case.