metals · TATASTEEL
Tata Steel
Tata Steel: PE above historical average. NARROW LEADERSHIP regime.
Price
₹186.92
Price 2026-07-30
5 day
+2.33%
Short-term move
1 month
-0.61%
Medium-term
Regime
NARROW LEADERSHIP
62% confidence
Market cap
₹236.7k Cr
neutral sector flow
Market Intelligence Analyst
Understand today's market in about 2 minutes.
“How does today's NARROW LEADERSHIP regime affect Tata Steel (TATASTEEL) in the metals sector?”
Price chart
₹183
+14.32% over period
About Tata Steel
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, wire rods; and 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 steels, construction, consumer goods, energy and power, engineering, and material handling industries. It 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.
At a Glance
RSI pattern warning
RSI oversold bounces for this stock succeeded only 0% of the time (avg -9.8% over 14 days) — not a reliable pattern.
52-week position
Trading at 83.3% of 52-week high
Technicals
RSI 14
40.7
Trend
downtrend
50 DMA
Below
200 DMA
Below
Key metrics
P/E ratio
21.9
33th pct · 9 quarterly points (~2.2y)
P/B
2.3
ROE
11.2%
Moderate profitability — 11.2% ROE
Market cap
₹236.7k Cr
Revenue growth
1250.0% YoY
Promoter
35.5%
52-week range
₹152.51 – ₹224.4
83.3% of high
RSI (14)
40.7
downtrend
vs 50 DMA
Below
DMA ₹194.47
Fundamental
85/100
STRONG
Trust
95/100
Verification
Coverage
100/100
HIGH
Quick Take
Tata Steel scores 85/100 on fundamentals (strong). Tata Steel: PE above historical average. NARROW LEADERSHIP regime.
Fundamental Score: 85/100 · STRONG · 1 signals detected
DuPont Analysis
ROE 10.8% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 10.81% is moderate margin-driven and stable. Net margin 4.6%, asset turnover 0.79x, leverage 2.9x.
What This Means
Net margin of 4.6% means the company keeps ₹4.6 as profit for every ₹100 of revenue. This is a low-margin business. Asset turnover of 0.79x means the company efficiently uses its assets to generate revenue. Leverage of 2.9x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
59.7%
Operating
10.0%
Net
4.6%
Gross margin 59.7% → operating margin 10.0% → net margin 4.6%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.
Financial Health
Earnings Quality
STRONGCash flow covers net income 3.2x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.
Debt Sustainability
ADEQUATEInterest covered 3.4x — adequate buffer. Debt is manageable. Debt/EBITDA at 2.5x is moderate.
Free Cash Flow
STRONGFCF margin at 8.6% — moderate. Generating cash after investments.
Peer comparison
| Stock | Price | 5D | P/E | ROE | Rev growth | Mcap |
|---|---|---|---|---|---|---|
| JSWSTEEL JSW Steel | ₹1,270.8 | +1.9% | 13.7 | 27.3% | 1420% | ₹3.0L Cr |
| HINDZINC Hindustan Zinc | ₹535.9 | +0.9% | 16.2 | 76.9% | 4300% | ₹2.2L Cr |
| HINDALCO Hindalco Industries | ₹970.4 | +1.5% | 16.1 | 10.3% | 2040% | ₹2.2L Cr |
| JINDALSTEL Jindal Steel | ₹1,093.7 | +5.0% | 31.2 | 6.8% | 2300% | ₹1.1L Cr |
| NATIONALUM National Aluminium Co | ₹347.65 | +0.5% | 10.2 | 29.4% | -480% | ₹62.9k Cr |
| APLAPOLLO APL Apollo Tubes | ₹1,893.1 | +3.4% | 42 | 25.3% | 1360% | ₹50.5k Cr |
| HINDCOPPER Hindustan Copper | ₹480.25 | -2.4% | 52.1 | 30.6% | 5810% | ₹47.9k Cr |
| JINDALSAW Jindal Saw | ₹254.3 | -2.5% | 17.2 | 8% | -820% | ₹16.7k Cr |
| TATASTEEL Tata Steel | ₹186.92 | +1.5% | 21.9 | 11.2% | 1250% | ₹2.4L Cr |
Tensions to watch
Promoter holding at 35.5% — neither distress selling nor aggressive buying
No strong insider signal. Watch for changes in promoter stake as a leading indicator.
Key Watchpoints
Breaks above ₹196 (+5%)
Trend reversal confirmation
Breaks below ₹178 (-5%)
Further downside risk
PE reverts to median of 21.9 (9 quarterly points (~2.2y))
Valuation normalization
Metals sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
Company not overvalued on revenue basis.
⚠️ 1 critical + 0 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes
