Should I Buy Tata Steel Share | Tata Steel Share Price Target 2022


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Recently, the Tata Steel company has split the share by 1:10 and this has brought down the Tata Steel Share Price to a level that is very attractive for the retail investors, especially the beginners and investors with limited fund. As of 12.08.22, the last trading price of Tata Steel was 112.80. In this post, we will discuss whether this is the right time to invest in the stock. Read the article up to the last to know everything in detail.


About Tata Steel Company

Tata Steel Limited is an Indian multinational steel-making company, based in Jamshedpur, Jharkhand, and headquartered in Mumbai, Maharashtra. It is a part of the Tata Group. Tata Steel Ltd is Asia’s first integrated private steel company set up in 1907.


The company has a presence across the entire value chain of steel manufacturing from mining and processing iron ore and coal to producing and distributing finished products.

Tata Steel group is among the top global steel companies with an annual steel production capacity of ~34 million tonnes per annum (MTPA). The company has a target to increase domestic steelmaking capacity to 30 MnTPA by 2025. It is one of the world’s most geographically diversified steel producers, with operations and commercial presence across the world. Since 2016, Tata Steel has been consistently ranked among the top ten steel companies in the DJSI Corporate Sustainability Assessment.



Fundamental Analysis of Tata Steel

Market Capitalization of Tata Steel

The current Market Capitalization of Tata Steel is 137580.09 crore. This is the second highest (after JSW Steel) among its peers. So, Market Cap. wise this is a large-cap company.

Sales Growth of Tata Steel

Tata Steel is consistently increasing its sales. For the last 3 years, the company’s sales growth rate is 15.7%, while for the last 5 years, the sales growth is 16.8%. This looks very promising. In March 2022, Tata Steel posted a year-on-year sales growth of 55.90%.


Profit of Tata Steel

Recently, Tata Steel had posted a consolidated profit of Rs 7,765 crore, which was almost 13 percent less year-on-year (YoY) and the consolidated revenue stood at Rs 63,430 crores up by 18.6 percent YoY during the April-June quarter of the financial year 2021-22. 


Return on Equity (ROE) of Tata Steel

The ROE of Tata Steel is 42.60. This means, on every 100 rupees you put in Tata Steel, it earns 42.60 Rs. This figure is really very attractive.

Tata Steel P.E. Ratio

The current PE ratio of Tata Steel is 3.53, which is far below that its 5 years historical PE of 5.85. Hence, P.E. wise the stock seems very attractive.

Other Fundamental Specifications

  • The cash flow of Tata Steel is increasing year on year basis.
  • 75% of Tata Steel Shareholders are Promoters, FII, & DIIs.
  • Tata Steel is trading at 120% of its Book value.

Debt to Equity Ratio of Tata Steel

Though the other fundamental parameters of Tata Steel are very promising, the Debt-to-Equity Ratio is concerning which is at 0.66%.


Technical Analysis of Tata Steel

On the weekly chart, the stock is continuously making higher highs. It just broke the resistance level of 110. Indicators like Bollinger Band are giving a bullish signal on the stock.


Should I Buy Tata Steel Share

The fundamentals indicators of Tata Steel are very promising except Debt-to-Equity Ratio. However, it is to be noted here that Tata Steel is a capital incentive company and it needs to take a lot of loans to run its businesses. Hence, as long as the company is making profits, Tata Steel seems to be in no danger.


Tata Steel Share Price Target 2022

International brokerage firm JP Morgan gave a Buy call on Tata Steel with a target price of Rs 140 per share (before the stock split Rs 1400), implying an upside of over 28 percent. On the other hand, ICICI Direct in its research report dated August 11, 2022, has recommended accumulating the stock with a target price of Rs 130.



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Disclaimer: – The name of the stock mentioned in this article is purely for Educational purposes. It should not be considered as Buying/Selling recommendations. The owner/author of this blog will not be held responsible for any kind of loss made after reading this article.



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