Company Information About Tata Steel Stock Price:

Tata Steel serves customers in the fields of:

  1. Power
  2. Energy
  3. Defense
  4. Security
  5. Railways
  6. Aerospace
  7. Packaging
  8. Excavating
  9. Engineering
  10. Automotive
  11. Shipbuilding
  12. Construction

As far as the domestic production is considered, the company ranks as the second biggest steel producing company in India with a capacity of 13 million tons per annum. Tata Steel employs about 80,500 people and features industrial operations in 26 countries, even including the United Kingdom, Netherlands, China, Australia, Thailand, and Singapore.

History:

Previously known as TISCO (Tata Iron and Steel Company), the Tata Steel Limited is one of the leading steel corporations in the world. Jamshedji Tata founded this company and was established on August 26, 1907, by Dorabji Tata.

The popularity of the company grew in a few years, and by 1939, the company was operating as one of the biggest steel plants in the British Empire. In 1951, the firm launched its significant expansion and modernization program, which was later improved to a 2 million MTPA (Metric Tons Per Annum) project.

The business grew further, and in 1970, it hired about 40,000 employees at Jamshedpur and an additional 20,000 employees at the nearby coal mines. The success of the company grew hugely, and in 1990, the firm started its expansion program and established a subsidiary in New York with the name Tata Incorporation. In 2005, the company was renamed to Tata Steel Limited from TISCO.

On February 2015, the company announced its interest in buying three strip product service centers from SSAB in Finland, Norway, and Sweden to strengthen its offerings in the Nordic region. However, the company never disclosed its transaction value.

In September 2017, Tata Steel and ThyssenKrupp, a Germany-based company announced their plans to unite their European steel manufacturing businesses for a fifty-fifty joint venture. With this, the popularity of the company grew, and today, it is recognized as one of the world's reputed and most valuable steel brands.

Management:

Natarajan Chandrasekaran – The Chairman of Tata Sons

Natarajan Chandrasekaran is the Chairperson of Tata Sons Limited, who is also the former Managing Director and CEO of TCS (Tata Consultancy Services). The companies operating under Tata Sons include Tata Steel, Tata Motors, Tata Communications, Tata Power, Titan, Tata Chemicals, Tata Beverages, Tata Consultancy Services, and Taj Hotels.

Under Chandrasekaran's leadership, TCS was reported not only as one of the biggest private-sector employers but also was rated to be the world's most influential brands in the field of Information Technology. He served as a chairman for the NASSCOM from 2012 to 2013 and played a vital role in the India-UK and Indo-US CEO forums.

He has not only achieved many awards but was also honored with the Economic Times Award for Corporate Excellence in 2016. He promoted economic and trade relations between India and the Netherlands, which made him receive the Frans Banninck Cocq Medal from Amsterdam. Besides all these, he was also voted as "The Best CEO" for the fifth time consecutively during the 2015's All-Asia Executive Team rankings.

T.V. Narendran – Chief Executive Officer and Managing Director

T.V. Narendran is the present MD (Managing Director) and CEO (Chief Executive Officer) of Tata Steels Limited. He joined the Tata Steel business in 1988 right after he finished his MBA from IIM (Indian Institute of Management) Calcutta. His responsibility at Tata Steel is to take care of the operations and look after the domestic as well as international steel businesses.

He worked from 1988 to 1997 in the Tata Steel's International Trading Division, in which he spent five years in Dubai taking care of the Tata Steel's Exports department of the Middle East. From 1997 to 2001, he not only worked in the marketing and sales department but also played an essential role in developing the brand – "Tata Tiscon."

He was involved with the company's initial overseas acquisition called NatSteel and was elected as the Executive Vice President during the year 2005. At NatSteel, he took over as the CEO in January 2008 and played a significant role in incorporating Tata Steel and NatSteel.

Koushik Chatterjee – Executive Director and CFO (Chief Financial Officer)

Koushik Chatterjee joined Tata Steel Limited in 1995 and was appointed as the Vice President in 2004. Under his leadership, he led the company's initial overseas acquisition called the NatSteel Asia. During his tenure, he handled the Corporate Function and Group Finance.

In 2009, Asia Money declared him as India's "Best Executive." He is also a member of Primary Market Advisory Committee and Indian Institute of Chartered Accountants.

Listings and Indices of Tata Steel:

In India, Tata Steel Limited is listed on BSE (Bombay Stock Exchange) and NSE (National Stock Exchange), whose shares can be purchased and sold consequently. It is a well-known, reputed steel brand and is an integral part of various benchmark indices like NIFTY and SENSEX.

NSE code: TATASTEEL

The BSE code: 500470

The company is also a part of a few other indices like BSE 100, BSE 200, CNX 500, CNX FMCG, and CNX Midcap. Along with this, it is also listed on the London Stock Exchange and Luxembourg Stock Exchange.

Company's Wealth And Performance of Tata Steels:

Tata Steel released its consolidated financial statements for the Q3 (Third Quarter) FY (Fiscal Year) 2018. The report stated that the net income for the third quarter increased to Rs.33,672.48 crore from Rs.29,154.75 crore in Q3 FY 2017.

The company has performed remarkably well in net profit as well. The consolidated net PAT (Profit after Tax) for the quarter is 1,143.88 crore, and there is an immense growth from the Q3 FY 2017 by 98%, which was at Rs.231.90 crore.

The economic recovery on a global scale is broad and remains to strengthen. The steel demand-supply chain in the worldwide market is favorable and has improved from the previous years.

The provisional production of Tata Steel in India for the third quarter marginally decreased to 3.24 million tons from 3.28 million tons in the last quarter of FY 2016-2017. However, in the 9-month duration from April to December of Fiscal Year 18, the production grew by 10.6% at 9.23 million tons.

The European steel production during the third quarter marginally increased to 2.68 million tons compared to the FY17, which was at 2.64 million tons. The sales in steel business both in Europe and India operations were reported to be higher for Q3 FY 18 at 2.41 million tons and 3.3 million tons respectively.

Tata Steel Stock Trends in 2018

The New Year 2018 opened with the stock trading at Rs.732.50 and kept hovering for the next few days. On the fifth day, the company released its financial statements of debt securities.

The Tata Steel's production for Q3 FY 18 was marginally down at 3.24 MT and the company informed about its special meetings with the investors and analysts.

On January 12, the company saw an inclination in its share price and was trading at Rs.771.20. With this, the firm releases its Investor Complaints Report for Q4 FY 2017. The trade for the month closed at Rs.735.50 with a slip by 1% due to ex-rights in the stock market.

In February 2018, the price saw a significant dip and the share was trading at Rs.708 and kept plummeting and went as low as Rs.668. But after the meetings with investors and surges in profit for the third quarter, the company jumped by 5% and was trading close to Rs.715 in the mid.

The prices kept fluctuating but remained steady between Rs.650 and Rs.700 for the whole month.

Why Invest in Tata Steel Limited?

Tata Steel is not only one of the leading brands but is also reported to be on the list of Fortune's top 500 most prominent corporations in the world.

Their steel plants produce Alloy, Cast Iron, Soft Iron, Iron, Cables, Wires, Locomotive parts, Tinplate, Machinery, and Agricultural equipment.

Despite many significant competitors in the industry, the firm has remained consistent in making profits. However, at times, with market fluctuations and low business sales, the company has performed low than the desired expectations.

The company had decent sales in the last six quarters and notably, higher sales in the Q4 (i.e., March 2017).

Though the brand is widespread and has plenty of advantages in the steel business, its drawbacks can indeed not be ignored. The company has a low-interest coverage ratio and has incurred many expenses. Understand that for consistent profit; costs should be appropriately maintained.

The annual sales for the last years were reduced every year. In 2012, it was Rs.1,32,899 crore, which now has turned into Rs.1,17,1551 crore in 2017. Also, its investments, as well as assets, are significantly decreasing.

Whether to invest in Tata Steel or not, is indeed a big question. It is highly advised to go through their sales records and put the money based on good quarterly outcomes.

If the last quarter is considered, the prices hiked, and they performed well in the market. There have always been all-around improvements in the steel business, and a majority of the players have reported decent numbers for 2016-17.

Overall, they can be appreciated, and you can wait for the right time to invest or hold for the right time to make good profits.

Indexes and Exchages

Bombay Stock Exchange (BSE)

The BSE or the Bombay Stock Exchange is Asia's oldest and first stock exchange. It is located in Mumbai, erstwhile Bombay, and it was formally established in 1875. An influential stockbroker and a businessman, Premchand Roychand, along with a handful of acquaintances, started the BSE journey in 1855. The BSE had its meetings under Banyan trees in its initial days. The group grew and eventually moved to a permanent place in 1874. BSE’s office is very appropriately named ‘Dalal Street’ which translated to Broker Street in Hindi. BSE operated as a floor trading exchange for a long time before ascending the digital ladder in 1995. They implemented an automated trading platform which had a capacity of 8 million per day. BSE went global in 2012, by joining the United Nations Sustainable Stock Exchange as a partner. Subsequently, in 2016, BSE established the first international exchange of India, called INX.

National Stock Exchange (NSE)

With an aim to induce transparency to the Indian capital market, the Indian Government implored a group of leading financial institutions for an effective solution. Accordingly, these financial institutions, along with the Government's support, established the first demutualized electronic exchange of India in 1992, known as the NSE. Since its inception, the NSE functioned on a totally automated screen-based digital trading system, which offered a great platform to connect the investor base of the entire country and offer them an easy trading facility. NSE was India's first electronic exchange and currently offers services pertaining to several segments, such as equity derivatives, clearing and settlement services in equity, trading, debt and currency derivatives, etc.

NIFTY Index

The NIFTY is National Stock Exchange of India's benchmark broad-based stock market index for the country's equity market. It lists 50 selected Indian companies across 12 sectors that own the largest and most liquid Indian securities. Hence, it is popularly called NIFTY 50. The Nifty index represents the weighted average of the stock value of those 50 companies. The India Index Services and Products or IISL, a company which is focused on an index as a core product, owns and manages the Nifty. Through one efficient portfolio, the Nifty exposes investment managers to the current status of the Indian market and helps in determining promising investment opportunities.

SENSEX Index

Similar to NSE's Nifty 50, BSE also has a stock market index known as Sensex. The word comes from the words 'Sensitive' and 'Index,' and is basically a portmanteau of the two. BSE 30 and S&P BSE SENSEX are two other names of this index. Sensex constitutes the top 30 financially flourishing and well-established companies from the ones listed on BSE. These companies typically represent diverse industrial sectors of the country's economy to ensure a holistic calculation. Usually, these are the companies that have the largest and most actively traded stocks. SENSEX is broadly reported through both print and electronic media in national as well as international markets. The scientifically designed indexing system is based on globally accepted construction and review methodologies. It is being calculated on the basis of a free-float market capitalization methodology since September 2003.