Tata Steel Limited (TATASTEEL) Fair Value & Analysis
Basic Materials · IN · Market cap ₹2.3T (≈ $24.7B) · ISIN INE081A01020
What is Tata Steel Limited really worth?
A solid business, but trading 30% above our fair value of ₹145.39.
Strengths
Risks
For context
Fair value as of: Aug 27, 2026
From 26 valuation models · updated 8 days ago
Share price −2.2% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
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 (₹72.44 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 Aug 27, 2026.
How to read this chart
60‑month range ₹76.07 – ₹216.20 · fair‑value band ₹72.44 – ₹183.91 · the ₹188.79 price screens above the ₹145.39 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 27, 2026.
Analysis
Tata Steel Limited (TATASTEEL) currently trades at ₹188.79, while our model-based Fair Value estimate is ₹145.39, implying the stock looks roughly 29.9% overvalued today. The Quality Score stands at 57/100 (solid quality), in the Basic Materials sector. Bull case: the DCF Models group reads highest at a median of ₹177.06 per share, and 6 of the 26 models we run sit above the ₹188.79 price. Bear case: the Asset-Based group reads lowest at ₹54.89, and 20 of the 26 models stay below the price. Evidence for this calculation is 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 Aug 27, 2026
Our scenario range runs from ₹72.44 (bear case) to ₹183.91 (bull case); at ₹188.79, 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 −29% fair-value upside, at −23%, TATASTEEL screens cheaper than that median.
Fair Value models
This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹2.01 per share, which is 1.4 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.
All 26 models by family
Widest divergence: DCF Models (₹177.06) versus Asset-Based (₹54.89). Highest evidence: FCF DCF (77).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 54 · Market factors (momentum, volatility) 58
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
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 30% overvalued. Compare with Nucor Corporation →
Peer Group
Steel · 398 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
Strength profile in five axes (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.
Similar stocks
10 more Steel stocks, each showing price versus our Fair Value estimate (as of Aug 27, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Nucor Corporation NUE | $250.50 | $116.05 | −54% |
| ArcelorMittal S.A MT | €64.60 | €46.04 | −29% |
| JSW Steel Limited JSWSTEEL | ₹1,296 | ₹1,119 | −14% |
| Steel Dynamics, Inc STLD | $234.67 | $127.14 | −46% |
| 500228 500228 | ₹1,292 | ₹1,079 | −16% |
| Reliance, Inc RS | $387.59 | $217.81 | −44% |
| Baoshan Iron & Steel Co 600019 | ¥5.91 | ¥8.07 | +37% |
| POSCO Holdings PKX | $63.13 | $85.21 | +35% |
| Jindal Steel & Power Limited JINDALSTEL | ₹1,114 | ₹429.44 | −61% |
| Lloyds Metals and Energy Limited LLOYDSME | ₹1,891 | ₹793.69 | −58% |
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