Tata Steel Share Price Target 2025, 2026, 2030 up to 2040
Table of Contents
About Tata Steel
Tata Steel Limited, a subsidiary of the Tata Group, is one of the leading steel manufacturing companies in the world. Established in 1907, Tata Steel has grown exponentially over the decades, becoming a pivotal player in the global steel industry. The company’s share price is a key indicator of its financial health and market performance, reflecting various factors such as market trends, economic conditions, and company-specific developments.
Tata Steel Limited is an India-based global steel company with an annual crude steel capacity of approximately 35 million tons per annum. The Company is primarily engaged in the business of manufacturing and distribution of steel products across the globe. The Company and its subsidiaries have a presence across the value chain of steel manufacturing from mining and processing iron ore and coal to producing and distributing finished products.
Its goods include full hard cold rolled, pre-engineered buildings, projects/tenders, BP sheets, HR commercial, hot rolled pickled and oiled and hot rolled skin passed pickled and oiled, cold rolled (non-branded), and high tensile steel strapping. The company’s brands include Colorcoat, HyperForm, HILUMIN, Holorib, Montana, Advantica, Fischertherm, Fischerfireproof, Montanatherm, Montapanel, Swiss Panel, Ymagine, Ympress, Strongbox, SAB Profil, Fischer Profil, and MagiZinc.
The Tata Iron and Steel Company (TISCO) was established by Jamsetji Nusserwanji Tata and on 26 August 1907. TISCO began pig iron creation in 1911 and started delivering steel in the following year as a part of Jamsetji’s Tata Group. The first-ever steel ingot by this organization was made on 16 February 1912. During World War I (1914-1918), the organization gained fast headway.
Historical Performance
The share price of Tata Steel has seen significant fluctuations over the years. Historically, the company has witnessed periods of rapid growth, driven by robust demand for steel, strategic acquisitions, and expansion into new markets. Conversely, the share price has also experienced downturns, often correlated with global economic slowdowns, fluctuations in raw material prices, and regulatory changes.
Key Factors Influencing Share Price
Several factors influence the share price of Tata Steel:
- Global Steel Demand: As a major steel producer, Tata Steel’s share price is closely tied to the global demand for steel. Economic growth in major markets such as China, the United States, and Europe can drive higher demand, boosting the share price.
- Raw Material Prices: The prices of key raw materials like iron ore and coal significantly impact Tata Steel’s production costs. Fluctuations in these prices can affect the company’s profitability and, consequently, its share price.
- Economic Conditions: A company’s financial performance and investor sentiment are significantly influenced by macroeconomic factors such as GDP growth, inflation rates, and interest rates.
- Regulatory Environment: Changes in environmental regulations, trade policies, and tariffs can have a direct impact on Tata Steel’s operations and profitability. For instance, tariffs on steel imports in the United States can affect the company’s export potential and market dynamics.
- Company-Specific Developments: The share price can be greatly impacted by strategic choices such technology breakthroughs, mergers, acquisitions, and divestitures. For instance, the 2018 acquisition of Bhushan Steel by Tata Steel was a significant turning point that impacted share valuation and investor perception.
TATA Steel Share Overview in tabular form
| Share Name | TATA STEEL LTD |
| Founded in | 1907 |
| Headquarters | Mumbai |
| Ticker Symbol | TATASTEEL |
| Country | India (NSE, BSE) |
| Market Cap | 1.538 Trillion |
| Revenue | 2.433 Trillion |
| Official Website | tatasteel.com |
| Sector | Non-Energy Minerals |
| Competitors | Jindal Steel, JSW Steel, Beekay Steel, OCL Iron & Steel Ltd. |
| CEO | Thachat Viswanath Narendran |
| Industry | Steel |
Tata Steel – Some Important Facts
Founded in 1907, Tata Steel is the first-ever steel organization to be set up in Asia, and it is India’s biggest private-sector steel company.
The main steel plant at Jamshedpur in eastern India has a creation limit of 5 million tons for every annum (MTPA). Abroad plants incorporate NatSteel Asia (2 MTPA) in Singapore, gained in February 2004 for $286 million, and Millennium Steel (1.7 MTPA) in Thailand, procured for $175 million.
Table: Historical Share Price of Tata Steel (Year-End Data)
| Year | Share Price (INR) | Annual Change (%) |
| 2018 | 527.60 | -23.4% |
| 2019 | 455.10 | -13.7% |
| 2020 | 645.20 | +41.7% |
| 2021 | 1125.40 | +74.5% |
| 2022 | 1204.60 | +7.0% |
Recent Trends
In recent years, Tata Steel’s share price has experienced notable volatility. The COVID-19 pandemic had a profound impact on the global steel industry, disrupting supply chains and leading to fluctuations in demand. Despite these challenges, Tata Steel demonstrated resilience through cost-cutting measures, operational efficiency, and strategic focus on high-growth markets.
The company’s share price had a robust comeback in 2021 and 2022, propelled by favorable market circumstances and a resurgence in global steel demand. Tata Steel’s focus on sustainability and environmentally friendly steel production helped to establish the company as a progressive force in the market and drew in eco-aware investors.
Prospects for the Future
The share price of Tata Steel has a promising future, albeit there are certain hazards involved. Steel consumption is predicted to increase as a result of the global shift to green and sustainable technology, especially in the infrastructure and automotive industries.
Tata Steel is well-positioned to benefit from these developments because to its dedication to cutting carbon emissions and funding cutting-edge technologies.
However, potential risks such as geopolitical tensions, fluctuating raw material prices, and regulatory uncertainties could impact the share price. Investors will closely monitor these factors, along with the company’s strategic initiatives and financial performance.
TATA Steel Share Price | Fundamental Analysis of Stock
Tata Steel Result Highlights
Q4FY24 Quarterly & FY24 Annual Result Announced for Tata Steel Ltd.
- Consolidated Revenues for Q4FY24 stood at Rs 58,687 crore, up 6% QoQ on improved volumes across geographies. EBITDA was at Rs 6,631 crore with an EBITDA margin of ~11%.
- Consolidated Revenues for FY2024 were at Rs 2,29,171 crore. EBITDA stood at Rs 23,402 crore and has been primarily driven by improved performance at India operations.
- The company has spent Rs 4,850 crore on capital expenditure during the quarter and Rs 18,207 crore for the full year. The phased commissioning of the 5 MTPA expansion at Kalinganagar is progressing.
Tata Steel Stock – Multibagger OR dividend share? Long term analysis | Rs. 5000 to 1 Cr.
Tata Steel – Awards Received
India’s Most Admired Company – by FORTUNE and Hay Group.
Best Conscious Capitalist Award – by Forbes India.
Thomson Reuters Innovation Award (“Hi-Tech Corporate” category).
Confederation of Indian Industry’s (CII) National Award for Excellence in Water Management for its “Most Innovative Rainwater Harvesting Project” (2011).
‘Best in Corporate Social Responsibility in India – by Finance Asia.
World Steel’ Safety and Health Excellence Recognition Award’ for two years in a row. Work-Life Excellence Award by the Singapore Ministry of Manpower.
Platinum HEALTH Award by the Singapore Health Promotion Board.
Tata Steel Share Price Live Updates: Shareholding information
Tata Steel Share Price Live Updates: Tata Steel has a 10.88% MF holding & 19.68% FII holding as per filings in the june quarter.
The MF holding has decreased from 11.20% in march to 10.88% in june quarter.
The FII holding has increased from 19.61% in march to 19.68% in june quarter.
Strengths
- The company has shown a good revenue growth of 18.78% for the Past 3 years.
- The Company has been maintaining an effective average operating margins of 27.47% in the last 5 years.
- The company has an efficient Cash Conversion Cycle of -63.19 days.
- The company has a good cash flow management; CFO/PAT stands at 1.75.
Limitations
- The company has shown a poor profit growth of -34.46% for the Past 3 years.
- Company has contingent liabilities of 42,472.02 Cr.
- The company is trading at a high PE of 40.96.
FAQs on Tata Steel
How to Buy Tata Steel Share?
You can easily buy Tata Steel shares in Groww by creating a demat account and getting the KYC documents verified online.
What is the Market Cap of Tata Steel?
Market capitalization, short for market cap, is the market value of a publicly traded company’s outstanding shares. The market cap of Tata Steel is ₹2,07,663 Or as of 18 Jul 24.
What is the PE and PB ratio of Tata Steel?
The PE and PB ratios of Tata Steel is-46.86 and 2.3 as of 18 Jul 24
What is the 52 Week High and Low of Tata Steel?
The 52-week high/low is the highest and lowest price at which a Tata Steel stock has traded during that given time period (similar to 1 year) and is considered as a technical indicator. The 52 week high and low of Tata Steel is 184.60 and 114.35 as of 18 Jul 24
Which Well-Known Brands Are Included in Tata Steel?
Products from Tata Steel are sold under the following brands: Ymagine, Ympress, Strongbox, Colorcoat, HyperForm, HILUMIN, Holorib, Montana, Advantica, Fischertherm, Fischerfireproof, Montanatherm, Montapanel, Swiss Panel, SAB Profil, Fischer Profil, and MagiZinc.
What Amounts Affect the Share Price of Tata Steel?
The demand for steel globally, the price of raw materials, the state of the economy, the regulatory environment, and company-specific events like mergers and acquisitions, technological breakthroughs, and strategic initiatives all have an impact on Tata Steel’s share price.
What Strategic Developments Have Recently Affected Tata Steel?
Key recent strategic developments include the acquisition of Bhushan Steel in 2018, the expansion into European markets, the impact of the COVID-19 pandemic, and the focus on sustainability and green steel production.
By understanding these FAQs, investors can gain better insights into Tata Steel’s market performance, strategic positioning, and financial health, enabling them to make more informed investment decisions.
Conclusion
Tata Steel’s share price is a crucial indicator of its market performance and financial health, influenced by global steel demand, raw material prices, economic conditions, regulatory changes, and company-specific developments. The company’s robust historical performance, strategic acquisitions, and focus on sustainable production position it well for future growth.
However, potential risks such as geopolitical tensions and regulatory uncertainties remain. Investors must stay informed about these factors and Tata Steel’s strategic initiatives to make well-informed investment decisions.
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