Tata Steel Limited (TATASTEEL) Fair Value & Analysis

Basic Materials · IN · Market cap ₹2.3T

A solid business, but screening 22% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case (₹183.91). The favourable scenario is already priced in.
• Solid but not exceptional quality (57/100) and above fair value, neither a clear bargain nor a standout compounder.
• A fairly wide model range (₹100.18 to ₹183.91) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range ₹72.20 – ₹216.20 · fair‑value band ₹100.18 – ₹183.91 · the ₹189.30 price screens above the ₹147.13 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

Full chart & analysis →

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Analysis

Tata Steel Limited (TATASTEEL) currently trades at ₹189.30, while our model-based Fair Value estimate is ₹147.13, implying the stock looks roughly 22.3% overvalued today. We read business quality at 57/100 (solid quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Tata Steel Limited generated revenue of ₹2.3T at a net margin of 4.7%. Revenue grew 12.5% year over year. It earns a return on equity of 11.2%. Net debt stands at ₹823B. Fundamentals as of Jul 16, 2026

Our scenario range runs from ₹100.18 (bear case) to ₹183.91 (bull case); at ₹189.30, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 16% below its 52-week high and 26% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -25% fair-value upside, at -22%, TATASTEEL screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: DCF Models (₹177.06) versus Asset-Based (₹54.89). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

Tata Steel Limited engages in the manufacture and distribution of steel products in India and internationally. It offers reinforcement bars (rebars) and wire rods, cut-and-bend reinforcement bars, welded wire mesh, prefabricated cages (pre-cages), steel couplers and carpet reinforcement, hot-rolled, cold rolled, coated coil, tubes, rebar, metallic coated, …

Full company description

Tata Steel Limited engages in the manufacture and distribution of steel products in India and internationally. It offers reinforcement bars (rebars) and wire rods, cut-and-bend reinforcement bars, welded wire mesh, prefabricated cages (pre-cages), steel couplers and carpet reinforcement, hot-rolled, cold rolled, coated coil, tubes, rebar, metallic coated, pre-finished steels, alloy steels, and profiles and construction systems. The company also provides solutions in building envelopes, structural, fit-out, foundations, and highway engineering products, as well as operates steel service centers. It serves agricultural, automotive, construction, consumer goods, energy and power, engineering, and material handling industries. Tata Steel Limited has a strategic collaboration with Hindustan Zinc Limited to scale low-carbon zinc solutions. The company was incorporated in 1907 and is based in Mumbai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Tata Steel Limited reported revenue of ₹2.3T in FY2026 versus ₹2.4T in FY2022, a compound −1.2%/yr. Reported net income was ₹108B in FY2026, compounding −28.0%/yr from FY2022.

TATASTEEL screens 22% overvalued. Compare with JSW Steel Limited →

Peer Group

Steel · 381 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Steel median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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10 more Steel stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.