₹133 Tata Group Share: Big Decision After Merger; Tata Share Will Double?
Tata Steel Ltd (NSE: TATASTEEL): The board of Tata Steel has approved the allocation of 8.65 crore shares to the eligible owners from Tinplate Company of India (TCIL) on the record date of 19 January.
The company announced this news on Sunday. The approval came two days after the end of the union that was announced by Tata Steel and Tinplate Company of India on the 15th of January.
What Are The Specifications?
As per a regulator filing, shareholders will be able to get the fully paid-up shares of the company, subject to the ratio of share exchange under the merger program.
Tata Steel said that the shareholders eligible for The Indian Tinplate Company will receive equity shares, which are given through Tata Steel in the share ratio of 33:10.
TCIL shareholders will receive 33 shares at a face value of Rs 1 for each 10 shares worth 10 rupees, the company announced.
Price Will Increase To Rs 160
The brokerages also are bullish on this stock. A Brokerage firm has advised buyers to buy stocks of Tata Steel.
The price Tata Steel is aiming for in the case of Tata Steel has been increased from Rs 145 to 160.
Asian flat (HRC) steel prices have increased by 8 percent in the past two months, after having dropped by 22 percent in March- October, the brokerage stated about steel companies.
Tata Steel, a global brokerage likes the increase in the assets of the company and the rising Indian part of the total volume.
This is why the brokerage seems to be cautious about the stock. Recently, the brokerage has lowered its rating for Tata Steel shares from ‘Buy and ‘Low’.
However, the price target of this share was kept at Rs 147. At present, Tata Steel’s share is priced at 133.90.
About Tata Steel Ltd Company
Tata Steel Limited is an Indian-based steel manufacturer that has an annual capacity for crude steel of around 35 million tons annually.
The company is mostly involved in the production and distribution of steel-related products around the world.
Its Company and its affiliates have a presence throughout the process chain of manufacturing steel beginning with the mining of and processing coal and iron ore to distributing and producing finished products.
Fundamental Analysis of Tata Steel Ltd
| Market Cap | ₹ 1,64,723 Cr. |
| Current Price | ₹ 133.90 |
| 52-wk High | ₹ 141.25 |
| 52-wk Low | ₹ 101.55 |
| Stock P/E | — |
| Book Value | ₹ 73.0 |
| Dividend | 2.69 % |
| ROCE | 12.6 % |
| ROE | 7.28 % |
| Face Value | ₹ 1.00 |
| P/B Value | 1.84 |
| OPM | 8.69 % |
| EPS | ₹ -4.98 |
| Debt | ₹ 89,723 Cr. |
| Debt to Equity | 1.01 |
Tata Steel Ltd Share Price Target 2024 To 2030.
| Year | 1st Target | 2nd Target |
| 2024 | ₹145 | ₹215 |
| 2025 | ₹216 | ₹305 |
| 2026 | ₹314 | ₹355 |
| 2027 | ₹385 | ₹422 |
| 2028 | ₹450 | ₹519 |
| 2029 | ₹550 | ₹612 |
| 2030 | ₹650 | ₹722 |
Tata Steel Ltd Shareholding Pattern
| Promoters Holding | |
| Dec 2022 | 33.90% |
| Mar 2023 | 33.90% |
| June 2023 | 33.90% |
| Sept 2023 | 33.90% |
| Dec 2023 | 33.70% |
| FII Holding | |
| Dec 2022 | 21.87% |
| Mar 2023 | 20.62% |
| June 2023 | 20.28% |
| Sept 2023 | 20.31% |
| Dec 2023 | 20.01% |
| DII Holding | |
| Dec 2022 | 19.62% |
| Mar 2023 | 20.68% |
| June 2023 | 20.96% |
| Sept 2023 | 22.20% |
| Dec 2023 | 23.15% |
| Govt. Holding | |
| Dec 2022 | 0.16% |
| Mar 2023 | 0.16% |
| June 2023 | 0.16% |
| Sept 2023 | 0.16% |
| Dec 2023 | 0.16% |
| Public Holding | |
| Dec 2022 | 24.45% |
| Mar 2023 | 24.63% |
| June 2023 | 24.70% |
| Sept 2023 | 23.43% |
| Dec 2023 | 22.99% |
Tata Steel Ltd Share: Last 5 Years’ Financial Condition
To gain a better understanding of how the market is performing, let’s look at the outlook of this share in the previous years.
However, investors should be aware of the risks and the market conditions before making any investment decision.
Last 5 Years’ Sales:
| 2019 | ₹ 157,669 Cr |
| 2020 | ₹ 139,817 Cr |
| 2021 | ₹ 156,294 Cr |
| 2022 | ₹ 243,959 Cr |
| 2023 | ₹ 235,217 Cr |
Last 5 Years’ Net Profit:
| 2019 | ₹ 9,122 Cr |
| 2020 | ₹ 1,174 Cr |
| 2021 | ₹ 8,190 Cr |
| 2022 | ₹ 41,749 Cr |
| 2023 | ₹ -6,922 Cr |
Last 5 Years’ Debt-To-Equity Ratio:
| 2019 | 1.37 |
| 2020 | 1.59 |
| 2021 | 1.1 |
| 2022 | 0.6 |
| 2023 | 0.76 |
Last 10 Years’ Profit Growth:
| 10 Years: | 11% |
| 5 Years: | 3% |
| 3 Years: | 146% |
| Current Year: | -100% |
Last 10 years’ Return on Equity (ROE):
| 10 Years: | 11% |
| 5 Years: | 15% |
| 3 Years: | 20% |
| Last Year: | 7% |
Sales Growth Over 10 Years:
| 10 Years: | 6% |
| 5 Years: | 15% |
| 3 Years: | 20% |
| Current Year: | -7% |
Company’s Positive Signs:
- The Company has been able to maintain an enviable dividend payout of 35.2 percent.
Company’s Negative Signs:
- It has a low-interest coverage percentage.
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