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TATA STEEL LIMITED

TATASTEEL.NS NSE

Tata Steel Limited looks about 134% undervalued against its cash-flow value. Its growth outlook scores mixed; the balance sheet looks stretched.

$1.95 +0.28% today as of 20 Jul, 3:05 PM
Steel

At a glance

tap a tile to dig in
57 overall score Fair value +134% undervalued vs estimate Health 11/22 checks pass Price · one year +15.3% Growth -1.6%/yr revenue trend Dividend 2.15% yield P / E 21.6 price / earnings

Otto's verdict

the tiles above, in a line each

Not investment advice — Otto just crunches numbers.

Price trend

+15.3% over one year · NIFTY 50 -3.2%

2025-08-20 · $1.66 2026-08-21 · $1.91

What think

The market's move: +15.3% over the past year

52-wk low $1.59 high $2.34

Trading 47% up its 52-week range. Price is the market's live vote — not advice.

The snowflake

checks passed on each axis
Value 100% Future 50% Past 50% Health 33% Dividend 50%
  • Value 2/2 checks
  • Future 2/4 checks
  • Past 2/4 checks
  • Health 2/6 checks
  • Dividend 3/6 checks
What does this show?

Five quick health scores — Value, Future, Past, Health and Dividend — each 0–100%. A bigger, more even shape means a stock that scores well across the board; a spiky one is strong on some axes and weak on others.

Learn more on Investopedia →

Fair value

our estimate · not analyst forecast

134% below our estimate — you'd be paying less than our numbers say it's worth.

$1.95 price today $4.55 fair value
How we got there

A 2-stage discounted-cash-flow on free cash flow: grow it at the capped historical trend for five years, fade to a 2.5% long-run rate, discount everything at 9.0%. It's a transparent estimate from past numbers, not a licensed forecast — treat it as one lens, not truth.

What does this show?

Our estimate of what one share is worth based on the cash the business is expected to generate (a discounted-cash-flow model), next to today's price. Below fair value hints undervalued, above hints expensive — it's an estimate, not a guarantee.

Learn more on Investopedia →

Health checks

22 checks run on free data
Show all 22 checks by axis

Value 2/2 passed

  • ✓ Trading below our fair-value estimate +134% vs our DCF estimate
  • – P/B below industry industry P/B not on the free feed
  • – P/E below industry industry P/E not on the free feed
  • – P/E below peer average peer P/Es land after the next refresh
  • – P/S sane vs its own history needs multi-year P/S (Tier B)
  • ✓ More than 20% below fair value +134% margin of safety

Future 2/4 passed

  • ✓ Earnings trending up 7.2%/yr over 3yr
  • – Growth beats the industry industry growth not on the free feed
  • ⚠ Earnings growth beats the market 7.2%/yr vs market ~9.0%
  • ⚠ Revenue trending up -1.6%/yr over 3yr
  • ✓ Return on equity improving ROE 10.6% vs 8.5% 3yr ago

Past 2/4 passed

  • ✓ Earnings grew over the period 87.6B → 107.9B
  • – High-quality earnings (few one-offs) one-off detection deferred — needs statement detail
  • ✓ Growth accelerating vs its average latest 215.6%/yr vs 7.2% average
  • ⚠ Revenue higher than five years ago 2.4T → 2.3T
  • ⚠ Return on equity above 20% ROE 11.2%

Health 2/6 passed

  • ⚠ Debt/equity falling over time long-term debt/equity 62.4% vs 49.9%
  • ⚠ Debt is under 40% of equity debt/equity 89%
  • ✓ Debt well covered by cash flow operating cash flow covers 38.0% of debt
  • ✓ Interest comfortably covered by profit EBIT covers interest 3.2×
  • ⚠ Short-term assets cover long-term debt 725.2B vs 1.0T
  • ⚠ Short-term assets cover short-term bills 725.2B vs 969.2B

Dividend 3/6 passed

  • ✓ Dividend covered by earnings and cash flow covered by both earnings and free cash flow
  • ⚠ Dividend growing over time over 4yr on record
  • ⚠ No dividend cut in recent years a cut shows in the record
  • ✓ Payout ratio under 75% payout 41.6% of earnings
  • ✓ Yield beats the market yield 2.15% vs market ~1.5%
  • ⚠ Yield in the top quartile of payers yield 2.15% vs 2.80% cut among the 58 payers Otto tracks
What does this show?

Pass/fail rules on the company's finances — debt levels, profitability, cash cover and so on. More greens means a sturdier balance sheet; an n/a just means we didn't have that data point.

Learn more on Investopedia →

Past performance

recent history from Yahoo Finance

Revenue

2023 · 25.2B 2026 · 24.1B

Earnings

2023 · 915.3M 2026 · 1.1B

Free cash flow

2023 · 787.9M 2026 · 2.1B

dashed line = what it'd look like growing at our ~9% market-average benchmark, for comparison

Deeper 10-yr statements are US-only for now — Otto's showing TATASTEEL.NS's Yahoo figures instead.

What does this show?

How revenue, earnings and free cash flow have grown over the years. Bars rising left-to-right show a growing business; the dashed line is a market-average pace for comparison.

Learn more on Investopedia →

Revenue & expenses

Q1 2026
Revenue $6.55B +12% Y/Y Gross profit $3.82B 58% margin Cost of sales $2.73B 42% of revenue Operating profit $685.43M 10% margin Operating expenses $3.13B 48% of revenue Net profit $305.69M 5% margin Tax $192.81M 3% of revenue Interest & other $186.93M 3% of revenue Other op. costs $3.13B 48% of revenue
What does this show?

How a company turns sales into profit. Revenue splits into the direct cost of sales and the gross profit left over; from that gross profit come operating costs (R&D, SG&A), tax and interest — what survives is net income. Every figure is also shown as a share of revenue, so you can compare periods and companies of different sizes.

Learn more on Investopedia →

Future

trend, not analyst forecast

Revenue · extended at -1.6%/yr

2023 · 25.2B 2029 · 22.9B projected

Earnings · extended at 7.2%/yr

2023 · 915.3M 2029 · 1.4B projected

Dashed bars just extend the historical trend (capped at ±15%/yr) — the same growth our DCF uses. It's arithmetic on the past, not an analyst forecast; real futures bend.

What does this show?

Solid bars are history; dashed bars simply extend the past growth trend a few years forward — capped so it stays sane. It's a trend line, not an analyst forecast.

Learn more on Investopedia →

Dividend

from cash actually paid, not promises
2.15% current yield · market ~1.5%
3 yrs without a cut, on record
Flat or cut over the saved record
paying out 41.6% of earnings 75% comfort line

Total dividends paid · split-proof, unlike per-share history

2023 · 657.5M 2026 · 469.1M
What does this show?

The share of profit paid back to shareholders as cash. Yield is that cash as a % of the price; the payout gauge shows how much of earnings is paid out (over ~75% can be hard to sustain).

Learn more on Investopedia →

Ownership & insiders

Insider-trade filings come from SEC EDGAR, which covers US companies only — there's no free equivalent for Indian filings yet, so Otto skips this one for TATASTEEL.NS.

What does this show?

Buys and sells by the company's own directors and officers, from their SEC filings. Insiders sell for many reasons, but clusters of open-market buying can signal confidence.

Learn more on Investopedia →

Competitors

Compare Steel · tap to jump
JSWSTEEL.NS JSW STEEL LIMITED $13.01 +1.5% scores after next refresh same industry
What does this show?

A few peers in the same business, each with its own mini snowflake, so you can see how this company stacks up rather than judging it in isolation. Anyone signed in can add a missing competitor — it shows for everyone, marked as user-added.

Learn more on Investopedia →

Leadership

Yahoo Finance · photos & bios via Wikidata

Ranked by title — reporting lines aren't public data. Compensation is the total Yahoo reports; blank means it isn't disclosed there.

In the news

My notes