Tata Steel Share Price Target 2024, 2025, 2026, 2027, 2030 Prediction: Buy or Sell?

Tata Steel is one of the world’s leading steel companies, with operations and a commercial presence across the world. It is part of the Tata Group, India’s largest conglomerate, and has a history of over 100 years of excellence and innovation in steelmaking. In this article, we will look at Tata Steel Share Price Target 2024, 2024, 2025, and 2030.

Tata Steel has a diversified product portfolio, catering to various sectors such as automotive, construction, consumer goods, engineering, energy and power, etc. It also offers value-added services and solutions to its customers, such as design, fabrication, installation, and recycling.

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Tata Steel Share Price Target 2024, 2025, 2026, 2027, 2030

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Tata Steel Share Price Live Chart

Tata Steel Share: Buy or Sell?

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Tata Steel’s Competitors

The steel industry is highly competitive and cyclical, with demand and supply influenced by various factors such as economic growth, trade policies, technological changes, and customer preferences. Tata Steel faces competition from both domestic and international players in the markets where it operates. Some of the key competitors of Tata Steel are:

Tata Steel’s Growth Opportunities

Tata Steel has a vision to achieve 40 million tonne capacity in India by 2030, almost double of its current capability in the country. It also aims to be a technology and innovation leader in the steel industry, leveraging in-house capabilities and building external ecosystems. Some of the growth opportunities that Tata Steel is pursuing are:

• Expanding its plant capacity in Kalinganagar, Odisha from 3 MTPA to 8 MTPA
• Increasing its stake in Neelachal Ispat Nigam Ltd (NINL), a one million tonne per annum steel mill in Odisha
• Exploring greenfield projects in Meramandali or Angul in Odisha
• Investing in steel recycling with the first plant commissioned in Rohtak, Haryana
• Developing new products and solutions for customers from various industries
• Adopting advanced maintenance practices and digital technologies to improve plant availability and reliability
• Collaborating with start-ups and research institutions to pilot new technologies such as hydrogen fuel, carbon capture and use, etc.
• Diversifying its product offering beyond steel by introducing new materials such as composites, fibre reinforced products, etc.

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Tata Steel’s Financials

Tata Steel has delivered a strong financial performance in the financial year 2020-21, despite the challenges posed by the COVID-19 pandemic. The company has achieved record revenues, earnings, and cash flows, driven by robust demand recovery, higher steel prices, operational excellence, and cost optimisation.

The company has also reduced its net debt significantly and improved its credit ratings. Some of the key financial highlights of Tata Steel for the last 5 financial years are:

Key Highlights from Tata Steel’s Financials (Figures in Crores unless specified):

1. Sales:
   • Experienced a dip in Mar 2020 at 148,972 from 157,669 in Mar 2019.
   • Recovered in Mar 2021 to 156,477.
   • Saw a significant jump in Mar 2022 reaching 243,959 but slightly decreased to 243,353 in Mar 2023.
2. Expenses:
   • Increased from Mar 2019’s 128,351 to Mar 2020’s 131,144.
   • Dipped in Mar 2021 to 125,973 but surged in the subsequent years, with Mar 2023 recording 211,053.
3. Operating Profit:
   • Dropped sharply in Mar 2020 to 17,828 from the previous year’s 29,318.
   • Reached its peak in Mar 2022 with 63,490 but decreased to 32,300 in Mar 2023.
4. OPM% (Operating Profit Margin):
   • Went down to 12% in Mar 2020 from 19% in Mar 2019.
   • Peaked at 26% in Mar 2022 but dropped to 13% in Mar 2023.
5. Interest:
   • Has generally been decreasing, reaching its lowest in Mar 2022 at 5,462 from Mar 2019’s 7,660.
6. Depreciation:
   • Has been rising till Mar 2021, reaching 9,234 but slightly decreased to 9,101 in Mar 2022 and increased slightly to 9,335 in Mar 2023.
7. Profit Before Tax (PBT):
   • Recorded a significant drop in Mar 2020, marking a loss at -1,380.
   • Made a remarkable recovery in Mar 2022, reaching 50,227 but decreased to 18,235 in Mar 2023.
8. Net Profit:
   • Saw a sharp dip in Mar 2020 with 1,172.
   • Surged to its highest in Mar 2022 at 41,749 but reduced to 8,075 in Mar 2023.
9. EPS (Earnings Per Share in Rs):
   • Decreased dramatically in Mar 2020 to 1.38 from 9.07 in Mar 2019.
   • Peaked at 32.88 in Mar 2022 but came down to 7.17 in Mar 2023.
10. Dividend Payout %:

• Saw a spike in Mar 2020 with 74%.
• Dropped to its lowest in Mar 2022 with 16% and then increased to 50% in Mar 2023.

From the above figures, it is clear that Mar 2022 was a particularly strong year for Tata Steel in terms of operating profit, PBT, net profit, and EPS, but the company experienced some reductions in these metrics in Mar 2023.

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Tata Steel’s Risks

Tata Steel operates in a dynamic and uncertain environment, which exposes it to various risks that may affect its business objectives and performance. The company has a robust risk management framework to identify, assess, monitor, and mitigate these risks proactively. Some of the key risks that Tata Steel faces are:

1. Commodity Risks: Tata Steel’s production costs are highly dependent on raw materials like coal and iron ore. The prices of these commodities are subject to changes due to a variety of reasons such as international politics, supply and demand imbalances, weather conditions, and government policies in major producing or consuming countries, particularly China.

2. Operational Risks: Tata Steel’s manufacturing could face disruptions due to different factors, including equipment breakdowns, natural disasters, diseases like COVID-19, or extreme weather. These disruptions can negatively affect the company’s operations and the level of service customers receive.

3. Community Risks: Trust with local communities is crucial for Tata Steel. If this trust is damaged, it could lead to a loss of reputation for the company and disrupt the business, and it will also reduce the positive impact Tata Steel can make on society.

4. Supply Chain Risks: Availability of materials is at risk due to disruptions caused by bad weather or political instability around the world. Moreover, the ongoing global pandemic not only threatens the steady supply of raw materials but also impacts the availability of shipping containers and freight services.

In Short: Tata Steel faces several risks including volatile commodity prices, potential operational disruptions, loss of community trust, and supply chain challenges. Each of these risks can have a significant impact on the company’s business and performance.

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Final Thoughts on Tata Steel Share Price Target 2024, 2025, 2026, 2027, 2030

Tata Steel is a global steel leader with strong growth prospects. The company has a diversified product portfolio, a loyal customer base, robust financial performance, and a visionary strategy. The company also faces various risks that may affect its business objectives and performance.

However, the company has a robust risk management framework to identify, assess, monitor, and mitigate these risks proactively. Tata Steel is well-positioned to leverage the opportunities in the steel industry and create value for its stakeholders.

This article is only for informational purposes, please consult your financial advisor before making investment decisions.

FAQs on Tata Steel Share Price Target 2024, 2025, 2026, 2027, and 2030

What is Tata Steel Share Price Target 2024?

In 2024, Tata Steel share price target is expected to reach approximately ₹175.39.

What is Tata Steel Share Price Target 2025?

The Tata Steel Share Price Target 2025 is ₹219.24.

What is Tata Steel Share Price Target 2026?

The Tata Steel Share Price Target 2026 is ₹274.05.

What is Tata Steel Share Price Target 2030?

The Tata Steel Share Price Target 2030 is ₹669.06.