Today, we’re going on a journey to explore Tata Steel Share Price Target for 2023 to 2050. We’ll use our knowledge and the company’s growth prospects to make an estimate, as the performance over the years has made many curious about whether Tata Steel is a wise investment for the long term. Additionally, we’ll also consider analyst recommendations from various brokerage firms.
Tata Steel, founded by visionary entrepreneur Jamsetji Tata in 1907, has its headquarters in Mumbai, India, and has grown into a multinational steel-making giant serving a global area through its production facilities in 26 countries. The company has a rich heritage and continues to be a leader in the steel industry.
As an investor or a beginner interested in Tata Steel, it is essential to understand the potential of Tata Steel’s share price target. We will analyze the performance of the company’s shares in recent times and provide you with a well-researched Tata Steel Share price target for 2023, 2024, 2025, 2027, 2030 to 2050.
Overview of Tata Steel
| Name | Tata Steel |
|---|---|
| Symbol | TATASTEEL |
| Industry | Steel |
| Founded | 1907 |
| CEO | T.V. Narendran |
| Headquarters | Mumbai, India |
| Country | India |
| Locations | India, Europe, Southeast Asia |
| Website | tatasteel.com |
| Wikipedia | Tata_Steel |
Tata Steel, established in 1907, stands as a global steel leader with its roots in India. Spanning over 50 countries, the company synergizes steel production and innovative solutions to cater to diverse sectors.
Home to world-class manufacturing units in Jamshedpur and Kalinganagar, Tata Steel boasts an impressive annual capacity of 33 million tonnes per annum (MTPA). The company’s wide-ranging product portfolio serves multiple industries such as automotive, construction, consumer goods, and energy.
Sustainability is at the core of Tata Steel’s ethos, embracing eco-friendly practices like resource optimization, emission reduction, and effluent management. The company’s carbon-neutral aspirations pave the way for a balanced environmental future.
Tata Steel also places a strong emphasis on research and development. Renowned research facilities, including the Tata Steel Advanced Materials Research Centre (TSAMRC) and the Tata Steel Innovation Centre for Green Technologies (TSICGT), nurture innovative ideas and cutting-edge discoveries in material sciences and novel applications.
Apart from being an industrial powerhouse, Tata Steel demonstrates a commitment to social responsibility. By supporting education, health, and livelihood initiatives, the company nurtures strong connections with the communities it serves, promoting shared prosperity.
Keep an eye on Tata Steel’s share price today with real-time updates, and examine its performance on the stock market through comprehensive charts that display the fluctuations in Tata Steel’s share price.
Business Model of Tata Steel
Tata Steel’s business model focuses on an integrated approach to steel production, innovation, sustainability, and diversification. The company offers a wide array of steel products and services catering to various industries, making it a global leader in the steel manufacturing sector.
Integrated Steel Production: Tata Steel operates an integrated business model, encompassing the entire steel production process from raw material sourcing, manufacturing, and processing to distribution and sales. This enables the company to have greater control over the supply chain and ensures consistent product quality.
Innovation & Technology: Tata Steel continually invests in research and development to improve its production processes, enhance product quality, and develop new steel grades. The company’s focus on innovation and technology enables it to offer customized solutions that cater to the evolving needs of its customers.
Sustainability: The company is committed to reducing its environmental footprint by adopting sustainable practices in its operations. Tata Steel emphasizes resource efficiency, waste reduction, and recycling, along with the use of clean energy sources to minimize the environmental impact of steel production.
Diversification & Expansion: Tata Steel has a global presence, with manufacturing facilities in several countries. The company continually explores opportunities for expansion and diversification, both geographically and across product segments, to mitigate risks and maintain a steady growth trajectory.
Services & Product Offerings
Tata Steel offers a comprehensive range of steel products and services, catering to the needs of various industries, including automotive, construction, energy, and consumer goods. The company’s product and service offerings can be broadly categorized as follows:
Flat Products: Tata Steel manufactures and supplies high-quality flat steel products, such as hot-rolled, cold-rolled, and coated steel, for diverse applications, including automotive, construction, and packaging.
Long Products: The company produces a range of long steel products, including rebars, wire rods, and sections, which are used in the construction, infrastructure, and engineering sectors.
Specialty Products: Tata Steel develops and supplies specialized steel grades and products, such as electrical steel, bearing steel, and high-strength steel, catering to the specific needs of niche industries.
Tubes: The company manufactures a variety of steel tubes and pipes for applications in construction, infrastructure, automotive, and other sectors.
Services: Tata Steel offers a range of services, including technical support, supply chain management, and product development assistance, to help customers optimize their operations and ensure seamless product integration.
Fundamentals of Tata Steel
As of May 2, 2023, the fundamental analysis of Tata Steel Limited focuses on key factors to better understand the company’s valuation. Various valuation techniques have been used, including the Price-to-Earnings Ratio (P/E), Price-to-Sales Ratio (P/S), Price-to-Book Value Ratio (P/B), and Dividend Yield.
| Metric | Standalone | Consolidate |
|---|---|---|
| MARKET CAP | ₹ 1,34,802.72 Cr. | ₹ 1,34,802.72 Cr. |
| ENTERPRISE VALUE | ₹ 1,64,222.90 Cr. | ₹ 1,87,732.47 Cr. |
| NO. OF SHARES | 1,222.15 Cr. | 1,222.15 Cr. |
| P/E | 6.98 | 8.02 |
| P/B | 1.04 | 1.13 |
| FACE VALUE | ₹ 1 | ₹ 1 |
| DIV. YIELD | 0.47 % | 0.46 % |
| BOOK VALUE (TTM) | ₹ 106.29 | ₹ 97.97 |
| CASH | ₹ 2,855.29 Cr. | ₹ 15,898.93 Cr. |
| DEBT | ₹ 32,275.47 Cr. | ₹ 68,828.68 Cr. |
| PROMOTER HOLDING | 33.9 % | 33.9 % |
| EPS (TTM) | ₹ 15.80 | ₹ 13.76 |
| SALES GROWTH | 53.35% | 55.91% |
| ROE | 30.19 % | 44.72 % |
| ROCE | 32.98% | 33.05% |
| PROFIT GROWTH | 93.30 % | 409.77 % |
The most useful metrics for a fundamental analysis of a company may vary depending on the specific company and industry, as well as the goals and investment strategy of the analyst. here are some additional metrics that can be useful in fundamental analysis.
Tata Steel Income Statement
Tata Steel releases its financial performance information to the public in the form of an income statement. Understanding the income statement is essential for investors, analysts, and financial professionals who want to make informed decisions about investing in Tata Steel or analyzing the company’s performance.
| PARTICULARS | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|
| Revenue | 1,24,110 | 1,57,669 | 1,48,972 | 1,56,477 | 2,43,959 |
| Expenses | 96,980 | 1,34,963 | 1,43,809 | 1,34,305 | 1,88,453 |
| EBITDA | 27,130 | 22,706 | 5,162 | 22,172 | 55,506 |
| EBIT | 21,155 | 15,114 | -3,753 | 12,854 | 46,396 |
| Profit Before Tax | 20,956 | 15,906 | -1,380 | 13,844 | 50,227 |
| Net Profit | 13,434 | 10,218 | 1,557 | 7,490 | 40,154 |
| Operating Profit Margin | 21.86% | 14.40% | 3.47% | 14.17% | 22.75% |
| Net Profit Margin | 10.82% | 6.48% | 1.04% | 4.79% | 16.46% |
| Earning Per Share | 4.91 | 8.76 | 3.85 | 6.81 | 33.27 |
| Dividends Per Share | 1.00 | 1.30 | 10.00 | 2.50 | 5.10 |
Tata Steel Competitors
Tata Steel faces competition from various domestic and international steel producers. Some of the major competitors of Tata Steel in the steel industry are
- Promoters— 33.90%
- Retail And Others— 26.26%
- Foreign Institutions— 20.62%
- Other Domestic Institutions— 10.09%
- Mutual Funds— 9.13%
An effective method for evaluating the Tata Steel share price Target is by examining research reports and analyses conducted by reputable financial institutions and brokerage firms. These organizations frequently offer comprehensive assessments of the company’s financial performance, future prospects, and industry trends, accompanied by recommendations and target prices.
| DATE | AUTHOR | TARGET | TYPE |
|---|---|---|---|
| 28 JUL 2023 | Geojit BNP Paribas | 135.00 |
Buy
|
| 27 JUL 2023 | BOB Capital Markets Ltd. | 145.00 |
Buy
|
| 26 JUL 2023 | IDBI Capital | 118.00 |
Hold
|
| 26 JUL 2023 | Axis Direct | 125.00 |
Hold
|
| 26 JUL 2023 | ICICI Securities Limited | 135.00 | Accum. |
| 20 JUN 2023 | Motilal Oswal | 110.00 |
Neutral
|
| 19 MAY 2023 | Geojit BNP Paribas | 115.00 |
Hold
|
| 17 MAY 2023 | Motilal Oswal | 110.00 |
Neutral
|
- Ownership—Stable
- Valuation—Fair
- Efficiency—Excellent
- Financials—Very Stable
*It is just an analytical rating of the company and not investment advice.
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We will analyze the performance of the company’s shares in recent times and provide you with a well-researched Tata Steel price target for 2023, 2024, 2025, 2027, 2030 to 2050, based on our knowledge and forecasting.
In 2023, we expect Tata Steel’s share price to continue its upward trend, driven by the company’s strong financial performance and sustainability initiatives. The company recorded a consolidated turnover of ~US$30.3 billion in the financial year ending March 31, 2023, and a Consolidated EBITDA of Rs 6,122 crore for the quarter ended June 30, 2023.
The minimum target of ₹150 is based on the assumption that the company will continue to perform well, while the maximum target of ₹170 is based on the assumption that the company will exceed market expectations.
In 2024, we expect Tata Steel’s share price to continue its growth trajectory, driven by the company’s focus on digital transformation and sustainability. The company has been recognized with the World Economic Forum’s Global Diversity Equity & Inclusion Lighthouse 2023 and has been a part of the DJSI Emerging Markets Index since 2012.
The minimum target of ₹180 is based on the assumption that the company will continue to perform well, while the maximum target of ₹200 is based on the assumption that the company will exceed market expectations.
By 2025, we expect Tata Steel to become a leader in digital steelmaking, which could drive the company’s financial performance and share price. The company has been on a multi-year digital-enabled business transformation journey intending to be the leader in ‘Digital Steel making by 2025’. The minimum target of ₹220 is based on the assumption that the company will continue to perform well, while the maximum target of ₹250 is based on the assumption that the company will exceed market expectations.
In 2026, we expect Tata Steel’s share price to continue its growth trajectory, driven by the company’s focus on digital transformation and sustainability. The company has received the World Economic Forum’s Global Lighthouse recognition for its Jamshedpur, Kalinganagar, and IJmuiden Plants, which could positively impact the company’s financial performance and share price.
The minimum target of ₹270 is based on the assumption that the company will continue to perform well, while the maximum target of ₹300 is based on the assumption that the company will exceed market expectations.
In 2027, we expect Tata Steel’s share price to continue its growth trajectory, driven by the company’s focus on digital transformation and sustainability. The company has announced its major sustainability objectives including Net Zero Carbon by 2045, Net Zero Water consumption by 2030, improving Ambient Air Quality, and No Net loss in Biodiversity by 2030, which could positively impact the company’s financial performance and share price.
The minimum target of ₹320 is based on the assumption that the company will continue to perform well, while the maximum target of ₹350 is based on the assumption that the company will exceed market expectations.
By 2030, we expect Tata Steel to achieve its major sustainability objectives, which could positively impact the company’s financial performance and share price. The company has also aspired to have a 25% diverse workforce by 2025 and has been recognized with the World Economic Forum’s Global Diversity Equity & Inclusion Lighthouse 2023.
The minimum target of ₹450 is based on the assumption that the company will continue to perform well, while the maximum target of ₹500 is based on the assumption that the company will exceed market expectations.
By 2040, we expect Tata Steel to achieve its major sustainability objectives, which could positively impact the company’s financial performance and share price. The company has also announced its major sustainability objectives including Net Zero Carbon by 2045, Net Zero Water consumption by 2030, improving Ambient Air Quality, and No Net loss in Biodiversity by 2030.
The minimum target of ₹800 is based on the assumption that the company will continue to perform well, while the maximum target of ₹900 is based on the assumption that the company will exceed market expectations.
By 2050, we expect Tata Steel to continue its growth trajectory, driven by the company’s focus on digital transformation and sustainability. The company has announced its major sustainability objectives including Net Zero Carbon by 2045, Net Zero Water consumption by 2030, improving Ambient Air Quality, and No Net loss in Biodiversity by 2030, which could positively impact the company’s financial performance and share price in the long run.
The minimum target of ₹1000 is based on the assumption that the company will continue to perform well, while the maximum target of ₹1200 is based on the assumption that the company will exceed market expectations.
| Year | Minimum Target | Maximum Target |
|---|---|---|
| 2023 | ₹150 | ₹170 |
| 2024 | ₹180 | ₹200 |
| 2025 | ₹220 | ₹250 |
| 2026 | ₹270 | ₹300 |
| 2027 | ₹320 | ₹350 |
| 2030 | ₹450 | ₹500 |
| 2035 | ₹600 | ₹700 |
| 2040 | ₹800 | ₹900 |
| 2050 | ₹1000 | ₹1200 |
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I would like to remind you that I am not authorized by SEBI to provide any financial advice or recommendations. As you know, Share price prediction is not an exact science, That’s why I am conducting in-depth research and using different AI tools to predict share prices. My purpose is only educational, and I am using AI to see what the future of the stock might look like.
Disclaimer– These Share Price Targets for “Tata Steel” are only provided for informational purposes only. It does not constitute a recommendation to buy, sell, or hold Tata Steel stock. Investors should conduct their own research and analysis and consult with financial experts before making any investment decisions— Sharedhan.com
