Tata Steel

Everyone in stock market speak about buy at low and sell at high. Very very few traders / investors does this. When the quality stock is low, investors wanted it to go further low to accumulate. Quality stock with consistent growing power like Tata Steel fell more than 10% in 4 trading days and how many would have followed the consistent accumulation of this stock ? I believe, it would be very less

Today (22.09.2021), Tata Steel touched the low of 1283.10 and its all time high was 1534.50, which was somewhere in middle of August 2021. When a stock like Tata Steel corrects 16%, this should be a clear buy following the SIP process

Tata Steel has the market capitalization of Rs. 1,48,386 Crores with the Face value of 10. 1 Year low of this stock was 342.75. Tata steel has the great record of giving dividend every year. This year on 17th June 2021, the dividend of Rs.25 per share was issued. The last bonus was given in the year 2004 in the ratio 1:2. 

Total Revenue of Tata Steel in 2021 is Rs. 1,56,294 Crores. Net Profit is Rs. 7,862 Crores. Earnings Per share (EPS) is Rs.63.78. The promotor holding percentage of the share remains unchanged at 34.41%. The pledge of the promotor stock percentage came down to 1.55%, which was 3.37% in June 2020. Foreign Institutional Investors (FII) holding percentage increased to 21.94%. 

Tata Steel has given a return of 270% in 5 years, which means if i have invested Rs. 1,00,000 in September 2016, its value is Rs.2,70,000 now. This is more than double of our money in 5 years. The above calculation is without the Dividend issued

News about Tata Steel:

• The Tinplate company of India, a subsidiary of Tata Steel will put up an additional capacity of 3,00,000 tonnes at an estimated capital expenditure of Rs.1,800 Crores

• In its investors presentation on 06th September 2021, the company said it intends to reduce its gross debt by more than $2 Billion, while prioritizing off-shore debt pre-payment in FY22. It is also planning a capital expenditure of Rs.10,000 - 12,000 Crores in the current financial year 

• The company reported its highest ever quarterly EBITDA and PAT despite volume being hit by the second wave of the pandemic. Tata Steel's debt declined further on QoQ basis even after a substantial working capital build

• Tata Steel plans to invest Rs.3,000 Crores in the next 3 years in Jharkhand with expansion of capacities of coal and iron ore mines and downstream value added steel portfolio - Chanakya Choudhary, Vice President - Corporate Services

The Peer comparison of Tata steel is as below

Disclaimer: This blog is for educational / informational purpose. This is not a buy / sell recommendation. For Investment and Trading contact your financial advisor.

Have a Great Day

B G Nareshkumar