TATASTEEL
Tata Steel
Tata Steel (TATASTEEL) Stock Analysis & Case Study
Is TATASTEEL a good buy? The data-driven verdict.
Tata Steel (TATASTEEL) trades at ₹199,on the numbers it mixed signals, a Downstox Snapshot Score of 53/100.
On the numbers, Tata Steel (TATASTEEL) mixed signals, a Downstox Snapshot Score of 53/100, weighing fairly valued at 22.0× earnings, ROE of 11.7%. Below: the full bull case, bear case, sector-relative valuation, and a probability-weighted price target for 2027–2031.
Last updated . Data snapshot for research, not investment advice.
The Downstox take on TATASTEEL
Here sits the classic steel puzzle: a P/E of 22 looks like growth pricing, but ROE of 11.7% and ROCE of 12.5% are mid-cycle returns, not compounder-grade ones. The market may be paying ahead for a cyclical upturn that has not yet shown in the earnings. The 2.01% yield offers some patience, but a Piotroski score of 4 out of 9 hints at soft operating momentum right now. Watch whether margins and free cash flow start validating that multiple, or whether it stays a hope trade on the cycle.
Downstox editorial view, written by our own analysts. Information, not investment advice.
TATASTEEL fundamentals at a glance, PE, PB, ROE, ROCE, market cap, dividend yield
Is TATASTEEL overvalued? TATASTEEL P/E vs its Metals
TATASTEEL's P/E of 22.0× sits above the Metals peer median of 18.8×, so on earnings it screens richer than peers, while its 2.01% dividend yield is above the peer median of 0.92%.
The bull case for TATASTEEL
- A 22.0× P/E sits in the fair-value band, neither cheap nor stretched.
- Pays a 2.0% dividend yield, so you're partly paid to wait.
The bear case & risks
- Return on equity is a soft 11.7%, capital efficiency trails higher-quality peers.
TATASTEEL Piotroski F-Score: 4/9, how financially strong is it?
The Piotroski F-Score grades financial strength on nine profitability, leverage and efficiency checks. TATASTEEL scores 4/9,mixed financial health.
TATASTEEL MTF margin & leverage, Upstox, Zerodha, Groww, Dhan
Margin Trading Facility lets you buy TATASTEEL with part of the capital. Lower margin % = higher leverage. Rates compared across brokers (no competitor publishes this):
| Broker | Margin required | Approx. leverage |
|---|---|---|
| Upstox | 28.9% | 3.5× |
| Zerodha | 24.6% | 4.1× |
| DhanCHEAPEST | 23.0% | 4.3× |
Compare every broker on the TATASTEEL MTF page.
TATASTEEL vs peers,Metals comparison
| Stock | P/E | Div yield | Market cap |
|---|---|---|---|
| TATASTEEL (this stock) | 22.0× | 2.01% | ₹2.48L Cr |
| VEDL | 13.8× | 14.20% | ₹1.20L Cr |
| JINDALSTEL | 28.6× | 0.18% | ₹1.15L Cr |
| HINDALCO | 13.0× | 0.49% | ₹2.28L Cr |
| JSWSTEEL | 34.4× | 0.55% | ₹3.13L Cr |
| SAIL | 18.8× | 0.92% | ₹72,222 Cr |
| NATIONALUM | 12.0× | 2.78% | ₹69,480 Cr |
About Tata Steel: sector, index & market-cap context
Tata Steel (TATASTEEL) is a large-cap NSE-listed company in the Metals sector, and a constituent of the Nifty 50 index group, with a market capitalisation of ₹2.48L Cr. See more Nifty 50 stocks.
How the TATASTEEL Snapshot Score & forecast are built
The Downstox Snapshot Score is a transparent, rules-based read of Tata Steel's public fundamentals plus a statistical forecast, not an analyst opinion. It rewards low-to-fair valuation, high ROE/ROCE, a strong Piotroski F-Score, a dividend, low volatility and a favourable probability of upside; it penalises rich valuations, weak capital efficiency, a low F-Score and high volatility. The price target is a 10,000-path Monte-Carlo simulation on real historical volatility, a distribution, not a single guess. The bull and bear cases are generated from the same data, so you always see both sides.
This is information, not investment advice. Do your own due diligence and consult a SEBI-registered adviser before investing.
TATASTEEL analysis, FAQs
Is Tata Steel (TATASTEEL) a good buy?
On the numbers, Tata Steel (TATASTEEL) mixed signals, a Downstox Snapshot Score of 53/100, weighing fairly valued at 22.0× earnings, ROE of 11.7%. This is a data snapshot for research, not investment advice.
Is TATASTEEL overvalued or undervalued?
TATASTEEL trades at 22.0× earnings versus a peer median of 18.8×, so it screens richer than its Metals peers.
What is the bull case for TATASTEEL?
A 22.0× P/E sits in the fair-value band, neither cheap nor stretched. Pays a 2.0% dividend yield, so you're partly paid to wait.
What are the risks in TATASTEEL?
Return on equity is a soft 11.7%, capital efficiency trails higher-quality peers.