Tata Steel price target 2023, 2024, 2025, and 2030: In this article, you will learn about Tata Steel share price target 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.
For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term.
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Tata Steel: Company Profile
Tata Steel, with an annual crude steel capacity of 34 million tonnes per annum (MnTPA), is one of the world’s most geographically diversified steel producers. Tata Steel is one of the few steel operations that are fully integrated – from mining to the manufacturing and marketing of finished products.
Continuous improvement in its product and service portfolio, along with success in value-creating initiatives for customers, allows the company to serve global growth markets. Today, Tata Steel has its operations and commercial presence across the world. A Great Place to Work-Certified organization, Tata Steel, together with its subsidiaries, associates, and joint ventures, is spread across five continents with an employee base of over 65,000. The group recorded a consolidated turnover of INR 1,56,294 crore in the financial year ending March 31, 2021.
Tata Steel Raw Material operations are spread across India and Canada which helps the company to be self-sufficient in steel production. Key manufacturing functions are performed by the raw materials and iron-making groups, while Shared Services provides maintenance support for smooth production. In India, its downstream business activities are structured into strategic business units such as Ferro-Alloys and Minerals, Tubes, Wires, Bearings, Agrico, Industrial By-products Management & Tata Growth Shop.
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Tata Steel In India
Tata Steel was established in India as Asia’s first integrated private steel company in 1907. With this, Tata Steel also developed India’s first industrial city at Jamshedpur. Today, Tata Steel is among the leading global steel companies. Tata Steel’s annual crude steel capacity across Indian operations is nearly 20 MnTPA and the company registered a turnover of INR 91,037 crore in FY21.
Tata Steel also set up its second greenfield steel plant of 3 MnTPA in the eastern state of Odisha in 2016; the expansion to 8 MnTPA is currently underway. Tata Steel possesses and operates captive mines that help it to maintain cost- competitiveness and production efficiencies through an uninterrupted supply of raw material. This is how Tata Steel ensures that the company remains the lowest cost producer of steel in Asia.
The Indian product portfolio is divided into four segments – Automotive and Special Products; Industrial Products, Projects, and Exports; Branded Products and Retail; and Services and Solutions. The Company supplies hot-rolled, cold-rolled, galvanized, branded solution offerings, and more.
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Tata steel in Europe
Tata Steel is one of the largest steel producers in Europe with a crude steel production capacity of over 12.4 MnTPA. Tata Steel established its presence in the European continent after acquiring Corus in 2007. The manufacturing facilities in Europe comprise primary steel-making facilities in the Netherlands and the United Kingdom, with downstream operations in the Netherlands, the United Kingdom, Germany, France, Belgium, Sweden, and Turkey. The European operations produce a wide range of high-quality quality strip steel products for demanding markets such as construction, automotive, packaging, and engineering.
Tata Steel in South-East Asia
Tata Steel’s operations in South-East Asia, with 2.2 MnTPA capacity, began in 2004 with the acquisition of NatSteel, Singapore. The operations are run by NatSteel Holdings Pte Ltd., a wholly-owned subsidiary of Tata Steel. The Company’s flagship facility in Singapore is one of the largest single downstream rebar fabrication operations in the world. This plant is the only local steel mill with an integrated upstream and downstream operation, where steel is manufactured through recycling scrap, and fabricated according to customers’ needs.
In 2015, Tata Steel acquired a majority stake in Thailand-based steelmaker Millennium Steel, which strengthened its South-East Asian operations. is the largest and most diverse long steel manufacturer in Thailand using recyclable steel scrap as raw material The product range includes High Tensile Rebars, ready to use Cut & Bend products, light structurals, and specialty wire rods for making Tire Cord, Tire bead, Wire Ropes, and stick electrodes. The company has a pan Thailand distribution network and regularly exports steel to Laos, Cambodia, Indonesia, Malaysia, India, and Bangladesh.
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Net Debt To Equity
Tata Steel Share Price Target 2023
Tata Steel’s profitable growth remains the bedrock of sustainability. In a year like no other, Tata Steel delivered a robust performance by leveraging its core strengths, which also validates its roadmap. Tata Steel’s strong free cash flows from operations enabled it to deleverage and accelerate capital deployment in immediately growth-accretive projects.
As one of the world’s most geographically diversified steel producers, Tata Steel strives to be the global steel industry benchmark for value creation, corporate citizenship, and business ethics. Through its completely integrated operations in India, Tata Steel cater to a wide array of industries with an unparalleled focus on innovation and cutting-edge technologies. Together, with its stakeholders, Tata Steel is building a sustainable enterprise that’s capable of standing the test of time.
During the year under review, the Company has developed 79 new products in India. For superior customer experience, the Company has adopted best-in-class manufacturing practices, invested in product branding, and developed its products to best serve its customers.
The focus of new product development in the hot rolled steel segment has been directed towards automotive structural and wheel applications along with strong entry into the line-pipe and pressure vessel segment. Products with special attributes such as high stretch frangibility, higher radial fatigue life, heat treatable automotive steels, line-pipe steels with excellent low-temperature impact toughness have been successfully commercialized.
For the cold-rolled products segment, the Company received multiple Auto Original Equipment Manufacturers (‘OEM’) approvals for CRDP780. Also, during the year under review, the Company commercialized Fe500 CRS to be used in the construction sector.
For the coating segment, the Company also entered into the functional secondary coatings market and got approval for lubrication-coated GA (T-COAT) in exposed panel applications. Amongst the first of its kind, the Company obtained approval for skin panels for passenger vehicles based upon bake-hardenable grade BH180 GA.
In the long products segment, the Company commercialized high strength, high ductility rebar grade – Fe500 SD, from New Bar Mill. If you read the above data carefully, you can clearly understand that Tata Steel aggressively entering into new segments and businesses to increase its business portfolio and revenues, Tata Steel share price target for 2023 is Rs 130.
|Tata Steel Share Price Target 2023|
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Tata Steel Share Price Target 2024
One of the keys to Tata Steel’s agility and resilience was a robust risk framework, which raised early red flags related to the pandemic, giving the organization an important head start, on the order of a month, for preparations that proved crucial.
In FY 2020-21, Tata Steel achieved its highest ever consolidated EBITDA of 30,892 crores with 71% Y-o-Y growth, translating to an EBITDA per tonne of 10,838 and an EBITDA margin of 20%. This was driven by higher prices, a better product mix, and operating efficiency initiatives. Tata Steel also recorded its highest-ever free cash flow of 23,748 crores, driven by efficient management of working capital and a strong focus on cash. Two notable examples of resilience stand out.
Despite challenging market conditions (India’s FY 2020-21 GDP contracted 7.7% Y-o-Y), deliveries at Tata Steel India increased 2% over FY 2019-20, enabled by a seamless shift to exports in the first half of the year. Tata Steel India was cash positive in Q1FY2021, a significant achievement given the pandemic. Considering all the factors, Tata Steel share price target for 2024 is Rs 170.
|Tata Steel Share Price Target 2024|
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Tata Steel Share Price Target 2025
As the Indian economy recovers from the pandemic, ongoing reform measures and forward-looking policies such as ‘Atmanirbhar Bharat’ have the potential to boost the growth trajectory. The steel industry is also entering a phase that will see better spreads enabled by robust demand and geo-political factors.
The strategic moves Tata Steel has made over the last few years have given it the structural and financial strength to capture the opportunities that arise going forward while ensuring its resilience in the face of uncertainty and a dynamic operating environment.
As Tata Steel continues to position itself to capitalize on the opportunities of the coming decade, Tata Steel will strive to be a leader in the transition to a greener economy, aiming to create a virtuous cycle of growth and returns for our shareholders. Considering all the opportunities that the steel industry has in the future, Tata steel share price target for 2025 is Rs 228.
|Tata Steel Share Price Target 2025|
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Tata Steel Share Price Target 2030
At Tata Steel, the company focus on developing solutions in sync with changing customer preferences. Backed by strong R&D, Tata Steel has launched several value-added products. The company forayed into advanced steel grades for future mobility needs and is developing alternatives to imported steel grades in the construction segment. Tata Steel also entered the new materials business to explore opportunities beyond steel.
The world’s largest cricket stadium at Motera, Ahmedabad, is a sight to behold. With a seating capacity of 1,10,000, the stadium is a landmark achievement of national sporting importance. 11,000 tonne of Tata Tiscon rebars – 75% supplied in customized sizes – went into the making of this magnificent structure, along with 41,000 couplers and 84,000 threads. Ensuring timely completion of this project defined how the game is enjoyed tomorrow.
The key opportunities boosting the steel demand are as follows:
- Government’s focus on strengthening the domestic manufacturing base under the flagship “Atmanirbhar Bharat” programme.
- The Production Linked Incentive scheme has been introduced to boost the manufacturing sector in industries like automobile & auto components, consumer durables, solar equipment, telecom, etc. These are expected to boost steel consumption.
- Government has announced an investment of over ₹1 trillion in infrastructure over the next 5 years. This would be a key growth driver not only for steel industry but will also be a multiplier of growth across the sectors, boosting steel demand from sectors such as transportation, real estate and infrastructure.
- Emergence of new trends after COVID-19 such as work from home, preference to physical distancing would create additional demand for furniture, personal mobility, etc. In addition, the rise in e-commerce activity will support the growth of warehousing and light commercial vehicles.
Steel demand is expected to be strong due to recovery in manufacturing businesses around the world and global fiscal stimulus supporting infrastructure projects.
Steel demand in key emerging economies (like India, Turkey) and Europe is expected to witness a double-digit recovery while Asia and the Middle East are likely to grow by 5%. While it is expected that steel prices will consolidate closer to historical levels, prices are likely to remain high supported by:
- strong iron ore prices.
- rebound in coking coal prices.
- positive impact from stimulus plans.
- improved business confidence from the roll-out of vaccines.
- Strong rebound of demand in 2021, in addition to supply-side reforms in China could lead to higher steel prices globally.
Strong iron ore prices and in addition to supply-side reforms could lead to higher steel prices, which is a positive thing for Tata Steel, Tata Steel share price target for 2030 is Rs 940.
|Tata Steel share Price Target 940|
Tata Steel share Price Target 2023, 2024, 2025, and 2030
|Year||Share Price Target|
|Tata Steel Share Price Target 2023||Rs 130|
|Tata Steel Share Price Target 2024||Rs 170|
|Tata Steel Share Price Target 2025||Rs 228|
|Tata Steel Share Price Target 2030||Rs 940|
Frequently Asked Questions
What is the future of Tata Steel share?
Steel demand is expected to be strong due to recovery in manufacturing businesses around the world and global fiscal stimulus supporting infrastructure projects, which is positive for Tata Steel share in the future.
Is Tata Steel undervalued?
Tata Steel has a PE ratio of 5.60 which is low and comparatively undervalued.
What is the target for Tata steel share?
Tata Steel share price target 2023 – Rs130.
Tata Steel share price target 2024 – Rs 170.
Tata Steel share price target 2025 – Rs 228.
Tata Steel share price target 2030 – Rs 940.
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