TATA STEEL SHARE PRICE TARGET 2023, 2024, 2025, 2026, 2027, 2028 to 2030

Welcome to BazarProfit’s comprehensive analysis of Tata Steel share price targets for the years 2023 to 2030. Our expert team has diligently researched and analyzed the data to provide potential investors with valuable insights into Tata Steel’s future performance.

In this article, we will explore the expected share prices for various target years, analyze the company’s fundamentals, and provide valuable suggestions for investors considering Tata Steel as a potential investment option.

Overview

Tata Steel Limited, an esteemed Indian multinational steel-making company, holds a distinguished position in the global steel industry. Formerly known as Tata Iron and Steel Company Limited (TISCO), the company is rooted in Jamshedpur, Jharkhand, while its headquarters are situated in Mumbai, Maharashtra. As an integral part of the renowned Tata Group, Tata Steel exhibits strong financial performance, global diversification, and a robust production capacity.

Tata Steel stands tall among the largest steel producers worldwide, boasting an impressive annual crude steel capacity of 35 million tonnes. The company’s global presence is a testament to its strength, with operations and commercial ventures spread across numerous countries.

Within India, Tata Steel commands the position of the largest steel company, with an annual capacity of 21.6 million tonnes, second only to Steel Authority of India Ltd. (SAIL).

Tata Steel’s international footprint extends to 26 countries, with key operational centers in India, the Netherlands, and the United Kingdom. Tata Steel has received widespread recognition for its exceptional performance and brand value. Notably, the company was ranked 486th in the 2014 Fortune Global 500 ranking of the world’s biggest corporations.

Tata Steel Limited’s impressive financial performance, extensive global presence, strategic acquisitions, and commitment to employee well-being make it an enticing prospect for potential investors. The company’s dominant position in the Indian steel market and its competitive edge through captive iron-ore mines offer investors a sense of stability and potential for growth. With a proven track record and a strong presence in key markets, Tata Steel is a valuable addition to any investment portfolio.

Fundamental Analysis of Tata Steel

Let’s take a closer look at Tata Steel’s fundamental analysis to help investors make informed decisions:

Market Cap

• The market capitalization of Tata Steel is ₹1,42,503 Crores. This represents the total value of the company’s outstanding shares in the stock market.

Current Price

• The current stock price of Tata Steel is ₹117 per share.

High / Low

• The stock has reached a 52-week high of ₹124 and a 52-week low of ₹93.4. This indicates the stock’s price volatility over the past year.

Stock P/E

• The Price-to-Earnings (P/E) ratio is 18.0. This ratio gives an idea of how much investors are willing to pay for each rupee of the company’s earnings. A higher P/E ratio indicates higher expectations for future earnings growth.

Book Value

• The book value per share is ₹84.3. It represents the net asset value of the company per outstanding share.

Dividend Yield

• Tata Steel offers a dividend yield of 3.09%. This means that for every ₹100 invested in the stock, an investor would receive ₹3.09 as dividends.

ROCE (Return on Capital Employed)

• The company’s Return on Capital Employed is 12.8%. This is a measure of how efficiently the company is using its capital to generate profits.

ROE (Return on Equity)

• The Return on Equity is 7.28%. It indicates how well the company is using shareholders’ equity to generate profits.

Face Value

• The face value of Tata Steel’s stock is ₹1.00. This is the nominal value of each share as per the company’s records.

Profit after Tax

• Tata Steel reported a profit after tax of ₹7,914 Crores. This is the company’s net income after deducting all expenses and taxes.

Profit Growth

• The company’s profit has declined by 80.2% recently. This may be a concerning sign as it indicates a significant decrease in earnings.

Sales Growth

• Tata Steel’s sales have declined by 0.25%. This means the company’s revenue from sales has decreased recently.

Industry PE

• The industry’s average P/E ratio is 17.2. Comparing the company’s P/E ratio to the industry average can provide insights into the stock’s valuation.

Pledged Percentage

• 1.55% of Tata Steel’s promoter holdings are pledged. This means a portion of the promoter’s shares is kept as collateral for a loan.

Earnings Yield

• The earnings yield is 11.3%. It is the inverse of the P/E ratio and gives the earnings generated as a percentage of the stock price.

Promoter Holding

• The promoters hold a 33.9% stake in the company. A higher promoter holding is generally considered positive as it shows confidence in the business.

Net Worth

• Tata Steel’s net worth is ₹1,03,082 Crores. It represents the company’s total assets minus total liabilities.

Debt

• The company has a debt of ₹84,893 Crores. High debt levels can increase financial risk.

Qtr Sales Var

• Tata Steel’s sales variation in the last quarter was -9.18%. This shows a decrease in sales compared to the previous quarter.

Returns over 1, 3, and 5 Years

• The stock has provided returns of 24.6%, 49.1%, and 17.2% over the last 1, 3, and 5 years, respectively. This indicates the historical performance of the stock.

Sales Growth 3 Years and 5 Years

• Tata Steel’s sales have grown by 17.8% over the last 3 years and 14.6% over the last 5 years. This shows the company’s revenue growth over a period of time.

Profit Variation over 3 Years

• The company’s profits have decreased by 0.68% over the last 3 years.

Total Assets

• Tata Steel’s total assets amount to ₹2,85,396 Crores.

Reserves

• The company’s reserves are ₹1,01,861 Crores. These represent the portion of profits retained within the company.

Tata Steel is a large-cap company with a market capitalization of ₹1,42,503 Crores. The stock is currently trading at a price of ₹117 per share. Over the past year, it has seen a 52-week high of ₹124 and a low of ₹93.4.

The company’s financial performance has been mixed, with a decline in profit and sales growth recently. However, it has shown positive growth in sales over the last 3 and 5 years.

Tata Steel’s P/E ratio of 18.0 and earnings yield of 11.3% suggest that investors have moderate expectations for future earnings growth. The dividend yield of 3.09% may attract income-focused investors.

The company has a moderate ROCE of 12.8%, indicating efficient use of capital, but the ROE of 7.28% shows room for improvement in generating profits from shareholders’ equity.

Tata Steel’s promoter holding is at 33.9%, which indicates reasonable promoter confidence in the business. However, a 1.55% pledged holding raises a small concern.

The company has a significant debt of ₹84,893 Crores, which can be a financial risk factor for investors to consider.

In conclusion, Tata Steel’s stock performance should be assessed with caution, considering its recent decline in profit and sales growth and its debt levels. Investors should carefully analyze the company’s business prospects, industry trends, and overall economic conditions before making investment decisions. Always remember to do further research and consult with a financial advisor before making any investment.

Also Read: Evexia Lifecare Share Price Targets 2024, 2025, 2028 and 2030

Competitor Comparison

Overall, Tata Steel’s performance against the number one stock, JSW Steel, shows that while JSW Steel has certain advantages in terms of higher CMP, P/E ratio, and Market Capitalization, Tata Steel differentiates itself with a higher Dividend Yield. Investors looking for potential growth might find JSW Steel more attractive, while those seeking income through dividends might lean towards Tata Steel.

As with any investment decision, it’s crucial for investors to conduct further research, consider their risk tolerance, and evaluate the overall performance and prospects of the companies in the industry before making investment choices.

Quarterly Results

Sales: Tata Steel’s sales figures show fluctuations over the four quarters. The highest sales were recorded in June 2022, but it experienced a dip in sales by December 2022, before slightly recovering in March 2023.

Operating Profit Margin (OPM %): The operating profit margin indicates the company’s efficiency in managing its operating expenses. Tata Steel’s OPM % declined over the quarters, suggesting challenges in controlling costs and maintaining profitability.

Other Income: Tata Steel’s other income remained relatively stable throughout the four quarters.

Net Profit: The net profit also experienced fluctuations, with the company reporting positive net profits in three quarters, except for a negative net profit in December 2022.

Earnings Per Share (EPS): EPS is an essential metric for investors as it represents the portion of a company’s profit allocated to each outstanding share of common stock. Tata Steel’s EPS has shown a declining trend, hitting negative values in December 2022 before bouncing back to positive in March 2023.

Overall, Tata Steel’s financial performance shows signs of volatility and challenges in maintaining steady profitability. The decline in operating profit margin and fluctuating net profits raise concerns about the company’s ability to generate consistent earnings. The high tax rate in December 2022 could be an anomaly or might have specific one-time reasons, which investors should investigate further.

Investors considering Tata Steel should closely monitor its financial performance and the industry’s conditions. Factors like global steel demand, raw material costs, and economic conditions can significantly impact the company’s performance. Additionally, it’s important for investors to compare Tata Steel’s performance with its competitors in the steel industry and analyze its strategies for growth and cost management.

Shareholding pattern

Key Points:

Promoters: The promoter’s shareholding in Tata Steel remained relatively stable at around 33.90% throughout the observed quarters. Promoters’ consistent ownership indicates their long-term commitment to the company.

FIIs (Foreign Institutional Investors): FIIs held a significant portion of Tata Steel’s shares, with their ownership fluctuating between 20.28% to 21.87% over the four quarters.

DIIs (Domestic Institutional Investors): DIIs also showed varying interest in Tata Steel, with their ownership ranging from 18.17% to 20.96%. DIIs are major players in the Indian stock market, including mutual funds, insurance companies, and financial institutions.

Government: The government’s stake in Tata Steel is relatively minimal at 0.16%, and it remained constant throughout the observed period.

Public: The public, which includes individual retail investors, held the largest share in Tata Steel. Their ownership ranged from 24.45% to 26.23% over the quarters.

The stable promoter’s shareholding is a positive sign, as it indicates confidence and commitment from the company’s founders. However, the decreasing trend in FIIs’ ownership may be worth monitoring, as it could suggest reduced interest from foreign investors in the stock.

Investors should consider the shareholding pattern as one of the factors while making investment decisions. A strong and stable promoter holding can indicate a long-term vision for the company. On the other hand, a significant portion of shares held by institutional investors like FIIs and DIIs can provide liquidity and stability to the stock’s trading volumes.

Tata Steel Share Price Targets

The provided tables present the projected high and low share prices of Tata Steel for the years 2023, 2024, 2025, 2026, 2027, 2028, 2029, and 2030. These projections are based on anticipated market trends, industry performance, and various other factors that may influence the stock’s value.

Tata Steel Share Price Target 2023

• The share price target for Tata Steel in August 2023 is projected to be between ₹121.64 and ₹109.12.
• The share price target for Tata Steel in December 2023 is projected to be between ₹131.67 and ₹122.99.

TATA STEEL LTD SHARE PRICE TARGET 2024

• The share price target for Tata Steel in January 2024 is projected to be between ₹134.19 and ₹126.48.
• The share price target for Tata Steel in December 2024 is projected to be between ₹162.38 and ₹155.10.

Tata Steel Share Price Target 2025

• The share price target for Tata Steel in January 2025 is projected to be between ₹164.99 and ₹157.79.
• The share price target for Tata Steel in December 2025 is projected to be between ₹191.57 and ₹185.63.

Tata Steel Share Price Target 2026

• The share price target for Tata Steel in January 2026 is projected to be between ₹194.28 and ₹188.52.
• The share price target for Tata Steel in December 2026 is projected to be between ₹224.81 and ₹221.61.

Tata Steel Share Price Target 2027

• The share price target for Tata Steel in January 2027 is projected to be between ₹227.65 and ₹224.74.
• The share price target for Tata Steel in December 2027 is projected to be between ₹259.46 and ₹251.83.

Tata Steel Share Price Target 2028

• The share price target for Tata Steel in January 2028 is projected to be between ₹262.41 and ₹254.82.
• The share price target for Tata Steel in December 2028 is projected to be between ₹295.52 and ₹288.84.

Tata Steel Share Price Target 2029

• The share price target for Tata Steel in January 2029 is projected to be between ₹298.60 and ₹292.05.
• The share price target for Tata Steel in December 2029 is projected to be between ₹333.03 and ₹328.28.

Tata Steel Share Price Target 2030

• The share price target for Tata Steel in January 2030 is projected to be between ₹336.22 and ₹331.70.
• The share price target for Tata Steel in December 2030 is projected to be between ₹371.97 and ₹370.67.

Conclusion

Tata Steel Limited, a renowned Indian multinational steel-making company, has established itself as a major player in the global steel industry. With a strong financial performance, global presence, and robust production capacity, Tata Steel presents an enticing opportunity for potential investors.

However, before making investment decisions, investors should conduct thorough research and analysis. Key points to consider include the company’s financial indicators such as market capitalization, stock price, P/E ratio, dividend yield, and profitability. Additionally, it is essential to evaluate the company’s growth prospects, industry trends, and overall economic conditions.

Tata Steel’s competitor comparison with JSW Steel can provide valuable insights into its relative strengths and weaknesses in the market. Furthermore, monitoring the company’s quarterly results, shareholding pattern, and long-term price targets can assist investors in making informed choices.

While Tata Steel’s historical performance and global recognition are positive factors, investors must be cautious of recent declines in profit and sales growth and the company’s debt levels. A careful evaluation of these aspects can help determine whether Tata Steel aligns with an individual’s investment goals and risk tolerance.

As with any investment, seeking advice from a financial advisor is recommended to ensure that investment decisions align with an individual’s overall financial strategy and risk profile.