in this, I am going to discuss a detailed analysis of Tata Steel. it’s fundamental as well as technical analysis with candlestick patterns. the analysis of tata steel gives an inside view of Tata Steel shares.
Tata Steel is one of the best Indian-based steel manufacturer companies with its registered office in Mumbai, Maharashtra.
The company is listed both in BSE and NSE Security exchanges.
In 1907 Tata Steel is established in India as Asia’s first integrated private steel company.
| Market cap: | 1,44,805,91 Cr |
| Face value: | 1.00 |
| EPS: | 19.89 |
| P/E: | 5.66 |
| P/B: | 1.07 |
| ROE: | 18.97 |
| Industry P/E: | 10.31 |
| Dividend yield: | 4.53% |
| Book value: | 88.03 |
| No. of shares: | 12,22,12,09,890 |
| Cash: | 2,855.29 Cr |
| DEBT: | 32,275.47 Cr |
| EPS: | 19.87 |
| Sales growth: | 53.35% |
| ROE: | 30.19% |
| ROCE: | 32.98% |
| D/E: | 0.26 |
| Profit grpwth: | 93.30% |
| 52-Week High: | 138.63 |
| 52 Week Low: | 82.71 |
Tata Steel company’s products:
Tata pipes, Tata Bearing, Automotive steel, Tata agrico, Galvano, Tata astrum, Tata wiron, Tata shaktee, Tata Ferro Alloys and Minerals Division, Tata Precision Tubes, Tata Steel Industries By-products Management Division, Tata Structura, etc.
The company is engaged in production.
Strengths:
The interest coverage ratio is 16.79
The company maintaining a healthy ROCE of 21% over the past 3 years.
The company maintain an effective average operating margin of 30.29% in the last 5 years.
The company has PEG ratio of 0.07.
the cash conversion cycle is -112.76 days.
The company’s sales growth is 53.35 last year, 22.25% for the last 3 years, and 21.87% for the last five years.
Weakness:
The owner’s stake is minimum.
Tata Steels shareholding pattern:
| Promoter holding: | 33.92% |
| Public holding: | 25.46% |
| FII holding: | 21.52% |
| DII: | 18.33% |
Is Tata Steel a good to buy long-term?
When you ask the above question in your mind just have look at this ratio which gives you a clear insight into Tata Steel.
Fundamental analysis is time-consuming and required careful analysis of the company, profit and loss statement, cash flow statement, and balance sheet. To make it easy you have to go throw some ratios which are essential for understanding the company’s financial health.
Some ratios are explained below which help you to understand the company’s financial health.
PE ratio: PE ratio of Tata Steel is 5.67 which indicates it is undervalued and stock good for buying.
Current ratio: Tata Steel has 58% of the current ratio which is good for paying short-term liabilities.
Return on equity: it indicates how much the investor can get on his investment. Higher better. Tata Steel has a 30.19% of ROE which is good.
Return on Assets: Tata Steel has a ROA of 16.40% which is good. It shows a good sign for future performance
Debt to Equity Ratio: The D/E ratio of Tata Steel is 0.26 which means the company has a low proportion of debt in its capital.
Sales growth: sales growth of Tata Steel is increasing drastically year by year. The revenue growth is 53.35 which is fair.
Dividend yield: Tata Steel has a 0.45% of dividend yield and this year’s dividend is 51 Rs.
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Technical analysis of Tata Steel:
Tata Steel is now trading at 104.65 on 3 Mar 2023. After making a high of 154 it falls nearly 49 % from its all-time high. Now candlestick pattern of Tata Steel is in the downtrend, trying to move towards 98. If it sustains above 98 next target will be 137, 153.
Tata Steel Mojor support is 98, second support is 90 and third support is 82.
Tata steel’s major resistance is 113, second resistance is 125 and third resistance is 137.
Tata Steel share price target:
| 1st target: | 125 |
| 2nd target: | 137 |
| 3rd target: | 154 |
| 4th target: | 197 |
| 5th target: | 269 |
| 6th target: | 340 |
| 7th target: | 384 |
Tata Steel share price prediction 2023.
The high is 154 low is 137
Tata Steel share price prediction 2024.
The High is 197 low is 160
Tata Steel share price prediction 2025.
The High is 269 low is 200
Tata Steel share price prediction 2030.
The High is 580 low is 492
Conclusion: Tata Steel has good sales growth, good return on investment, a good balance sheet, and management also good. The stock is right now undervalued. So before you invest check all the details to make a decision.
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