Tata Steel Ltd.
Metals · NSE
52-week range
₹137 – ₹219
From 52w high
-2.1%
RSI (14)
59.4
vs SMA 50 / 200
↑ 50 · ↑ 200
Tata Steel trades at ₹214.49, up 51.96% over the past 12 months and 18.02% above its 200-DMA of ₹181.68, with RSI at 59.36 in neutral territory. The trailing PE stands at 29.16 against a forward PE of 12.33, reflecting market expectations of a significant earnings step-up; profit margin is 4.07% and debt-to-equity is 99.699 with a rising debt trend. Two active regulatory proceedings — a ₹1,755.11 crore tax demand and a CCI antitrust investigation — are unresolved as of the run date.
- ✓Price is above both the 50-DMA (₹203.62) and 200-DMA (₹181.68), with a 52-week drawdown of only 2.15%, indicating the current price is near a one-year high after a 51.96% annual gain.
- ✓FCF was positive in 4 of the available fiscal years, suggesting the business has generated cash even through commodity cycles, despite the elevated debt load.
- ✓Forward PE of 12.33 versus trailing PE of 29.16 reflects analyst expectations of materially higher near-term earnings, with 33 analysts providing coverage (mean rating 2.25 on a 1–5 scale, lower = more constructive).
- ✓Quality score of 44 ranks 1st among the 6 peers in the Metals sector dataset, though peer data sparsity limits the comparability of this ranking.
- ✗Debt-to-equity of 99.699 with a rising debt trend and ROE above 15% in only 1 of the available years points to sustained leverage in a capital-intensive, cyclical industry where earnings can compress rapidly.
- ✗Profit margin of 4.07% is thin; a modest deterioration in steel realizations or rise in coking coal costs could compress margins further and widen the gap between the trailing and forward PE assumptions.
- ✗A ₹1,755.11 crore tax demand notice for coal extraction is under revision application, and a CCI antitrust investigation citing alleged price-fixing among steel producers (Tata Steel, JSW Steel, SAIL) creates unquantified contingent liability exposure.
- ✗Fundamental consistency score of 2 and only 1 year with ROE above 15% reflect the episodic rather than structural nature of profitability in steel — earnings growth of 730.8% over 5 years is partly a function of a low base following prior-cycle losses.
- ·Earnings are scheduled for May 13, 2026; the stock gained 0.75% in the session reported ahead of that date, with trailing results and management commentary on UK operations and global steel demand likely to be the key variables.
- ·Tata Steel has partnered with SMS Group to deploy what is described as a world-first EasyMelt decarbonisation technology, a capital allocation decision that may affect near-term cash outflows but positions the company within green-steel transition narratives.
- ·The CCI investigation into WhatsApp-based price coordination among Indian steel producers, if it results in penalties or behavioural remedies, could affect pricing flexibility across the sector — not just for Tata Steel individually.
- ?If the forward PE of 12.33 is premised on earnings recovering to a normalised level, what specific margin or volume assumptions underpin that recovery, and how sensitive is the thesis to a 10% decline in hot-rolled coil prices?
- ?Given that debt-to-equity stands at 99.699 and is on a rising trend, at what point does the interest coverage ratio become a constraint on capital allocation, and how does the UK operations restructuring affect the consolidated debt profile?
- ?The 5-year earnings growth of 730.8% is measured from a depressed base — how much of the current PE compression from forward-to-trailing reflects genuine operational improvement versus a cyclical trough reversal?
- ?With the CCI antitrust matter and the ₹1,755.11 crore tax demand both unresolved, what is the total disclosed contingent liability, and how have management characterised the probability of adverse outcomes in recent filings?
PE
29.2
Forward PE
12.3
ROE
—
Profit margin
+4.1%
D/E
99.70
Dividend yield
+1.7%
Quality score
44/100
ROE 5y above 15%
1/5 yrs
FCF 5y positive
4/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 10 May 2026.