Market cap ₹2.09TNext earnings 2026-10-27Updated Oct 24, 2026 · valuation updating
Our verdict
No fair value
We are missing the financial data our models need for this company. It will appear once the data arrives.
Not valued: there are no financial statements on file yet.
ACCE opinionTata Steel Limited (TATASTEEL.NS)
Fair value
Not available
ACCE price target
₹180
Rating
Not rated
Horizon
12 months
ACCE price target published on 22 Oct 2026, 16:00 CEST.
Price used: ₹168 at the close on 23 Oct 2026, 12:00 CEST.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
57
out of 100
P/E
18.9x
forward 9.4x
1-year return
-3.7%
Dividend yield
2.32%
Tata Steel Limited in four questions
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Overview
ACCE thesis
Tata Steel makes flat-rolled and long steel products, including hot-rolled coil, cold-rolled sheet, coated steel and rebar, for Indian auto, construction and packaging customers, and it also runs the Netherlands and UK operations it has been restructuring. The structural case rests on scale in India, where it is one of the largest integrated producers, and on steel demand tied to infrastructure and auto spending that is growing faster than the global average. Revenue grew 14.3% over the latest reported year, but the 9.3% operating margin is thin for a steel maker and leaves earnings exposed to swings in iron ore, coking coal and realizations. The forward P/E of 9.6 against a trailing 19.5 implies the market expects a sharp earnings recovery from a weak base, so the question for a PM is whether margins can rebuild on the India-based cost structure. This is worth a deeper look to test that recovery against commodity assumptions and the European restructuring drag.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Earnings miss
Q2 2026 EPS came in 28.8% below expectations, while the stock trades 6.6% below the ACCE price target of ₹179.50. Results weakness could pressure the multiple.
moderate
Leverage elevated
Debt/Equity of 0.89 is heavy for a cyclical steel producer, and FCF is not available to show how easily that debt is serviced.
moderate
Thin net margin
Operating margin of 9.3% and net margin of 4.6% leave little cushion if steel prices soften, given the capital-intensive model.
AI research notes
AI-assisted·How I use AIWritten Oct 22, 2026 · figures from 2026-10-22 · prices to Oct 23, 2026
Why it could do well
Revenue grew 14.3% over the latest year, and the five-year average annual growth is 21.6%.
On forward earnings estimates the stock trades at 9.6 times, against 19.5 times on trailing earnings.
Analysts' mean price target of INR 216.97 sits 25.9% above the current share price of ₹167.67.
Why it could disappoint
Net margin is only 4.6%, leaving little cushion if steel prices or input costs turn against the business.
Debt equals 0.89 times shareholder equity, a meaningful load for a cyclical steelmaker in a downturn.
Latest quarterly earnings per share came in 28.8% below expectations, at 1.69 against 2.37 expected.
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