Tata Steel is one of India’s leading steel producers, with a rich legacy dating back to 1907. Over the years, Tata Steel has grown to become a global steel giant, renowned for its commitment to quality and innovation.
In this article, we will explore Tata Steel’s target price from 2023 to 2025 and provide insights into the factors that may impact its share price in the coming years.
What is the Tata Steel Share Price Target from 2023 to 2025?
Tata Steel’s stock is trading at around Rs. 106 per share. Though the stock has not performed well in the last 1 year and currently trading at last year’s price only.
According to current market analysis, the price target for Tata Steel’s stock by 2025 is expected to be around Rs. 120-125 per share.
Because, the demand for steel is expected to rise due to infrastructure development, urbanization, and increased industrial activities in India.
However, there’s no certain way to predict stock prices accurately. You should analyze fundamental, and technical analyses of a company’s performance before making a decision.
Fundamental Analysis of Tata Steel Stocks
Tata Steel has demonstrated consistent revenue growth over the past few years. The company’s revenue increased from INR 156,476 crores in FY2020-21 to INR 243,959 in FY2021-22 showcasing its ability to generate substantial sales.
But in 2022-23, Tata Steel’s consolidated revenue dropped around 9% YoY to Rs 62,960 crore. Its overall net profit in 2022-23 fell 82.5% year on year to Rs 1,704.86 crore due to poor performance in the European market.
Furthermore, Tata Steel has been proactive in managing its debt and improving its profitability. In FY21 and FY22, the steel giant paid 1325 crores and 636 crores of gross debt, respectively, and became net debt free, excluding the preference shares issued. Its current Debt to equity ratio is around 0.82 which seems good in such a heavily debt-oriented industry.
There are a few challenges for Tata Steel that you must analyze to set future price targets. As we have already discussed the substantial drop in Tata Steel’s revenues is a major concern.
Tata Steel’s total debt is still Rs. 84,890 Cr, and it will need to manage this effectively to avoid any negative impact on its financials. Additionally, the Steel sector in India is highly regulated, which could limit the company’s ability to generate profits.
In the past five years, Tata Steel’s revenue has grown at a CAGR of 15% with 3% annual profit growth.
Technical Analysis of the Tata Steel Stocks
Tata Steel’s stock price has been in a bullish trend since September 2020, with the stock price increasing from Rs 30 to Rs 146 in just 15 months. Since July 2022, Tata Steel’s stock is trading in a range-bound zone of Rs 100 to Rs 120 for almost one year.
Experts believe that the stock could break out of this range in the coming months. If this happens, the stock could potentially reach the range of Rs 120.
The technical analysis of Tata Steel’s stock price is positive, and the experts predict that the stock price will continue to be in an uptrend.
Factors that Can Affect Tata Steel’s Share Price By 2025
There are several factors that could affect Tata Steel’s stock price in the coming years. Some of the key factors include
- Industry and market trends – The steel industry is closely tied to economic growth and infrastructure development. As India continues to invest in infrastructure projects and urbanization, the demand for steel is expected to increase. The recovery of the global economy and the increased focus on sustainable infrastructure can positively impact the steel industry and Tata Steel’s share price.
- Government policies and regulations – Tata Steel operates in a highly regulated industry and any changes in government policies or regulations may have a substantial impact on the company’s operations and financial performance, which in turn could influence Tata Steel’s stock price.
- Competition from other Steel companies – The Steel sector in India is highly competitive and Tata Steel faces stiff competition from other established players as well as new entrants. Any rise in competition could impact the Steel manufacturer’s market share and earnings potential, which could affect its stock price.
- Investments and acquisitions – Tata Steel has been actively pursuing growth opportunities through investments and acquisitions in recent years like Usha Martin. Any new investment or acquisition activity may have an impact on Tata steel’s financial performance and future growth prospects, affecting the stock price.
- Environmental and social factors – With an increased emphasis on sustainability and ESG (environmental, social, and governance) concerns, any negative impact of Tata Steel’s operations on the environment or society may result in unfavorable investor sentiment towards the stock, potentially influencing its price.
Tata Steel’s Financial Performance in Recent Years
Tata Steel’s financial performance has been inconsistent in the past few years. In the fiscal year 2021-22, the company reported a revenue of INR 243,959 crores from Rs 156,477 crores in 2020-21, a growth of 55.9%. But in 2022-23, the company’s sales growth tumbled at 243,353 crores. Tata steel’s net profit declined to 82.5% from Rs 41749 crores in 2022-23 to Rs 8075 crores in the fiscal year 2020- 2021.
Last 5 Years sales growth & Profit
| Year | Sales Growth | Net Profit (in crores) | Dividend Payout |
| 2022-23 | -0.2% | 8,075 | – |
| 2021-22 | 55.9% | 41,749 | 64% |
| 2020-21 | 5.0% | 8,190 | 38% |
| 2019-20 | -5.5% | 1,172 | -100% |
| 2018-19 | 27.9% | 9,122 | 62% |
Conclusion
In conclusion, Tata Steel is a leading Steel manufacturer in India that has shown strong growth potential in recent years. Based on expert views, we believe that Tata Steel’s stock price could continue to grow in the coming years.
However, investors should be mindful of the risks associated with investing in the stock market and do their own research before making any investment decisions.
You can also read about other stocks’ target prices –
- Suzlon Share Price Target
- Tata Motors Share Price Target
- Tata Power Share Price Target
- IRCTC Share Price Target
- Adani Power Shares Target Price
Frequently Asked Questions
Tata Steel is one of the leading steel producers in India and a subsidiary of the Tata Group, a multinational conglomerate. The company has a rich history that dates back to 1907 when it was established as Tata Iron and Steel Company.
As of the date of writing this blog post, the current market price of Tata Steel is Rs 106 per share.
Over the past five years, Tata Steel’s stock price has shown an upward trend with occasional dips and corrections. However, past performance is not necessarily indicative of future results.Over the past five years, Tata Steel’s stock price has shown an upward trend with occasional dips and corrections. However, past performance is not necessarily indicative of future results.
Tata Steel’s dividend yield is around 3.40%.
Investing in Tata Steel for the long term can be a favorable choice considering the company’s strong fundamentals, growth potential, and positive outlook for the steel industry. However, it’s essential to conduct thorough research and consider your investment goals and risk appetite before making any investment decisions.
Like any investment, investing in Tata Steel comes with certain risks. Some of the key risks include fluctuations in steel prices, raw material costs, economic downturns, and regulatory changes. It’s important to diversify your portfolio and stay informed about industry trends and market developments.
