Tata Steel Share Price Target 2025 can be predicted after knowing the company’s details like its financials, past returns, and future projections.
Tata Steel Ltd, Asia’s first integrated private steel company, established in 1907, has grown into a giant in the steel manufacturing sector.
With its operations spanning the entire value chain from mining and processing raw materials to producing and distributing finished products, Tata Steel has set an ambitious target to increase its domestic steelmaking capacity to 30 MnTPA by 2025.
Tata Steel Share Price Target 2025
Based on Tata Steel’s robust growth strategies, market position, and financial performance, the share price prediction for 2025 can be broken down month by month.
- January 2025: Expected to open the year strong, considering the ongoing projects and expansions, with a predicted share price of Rs. 150.
- February 2025: Continued market confidence and strong quarterly results may drive the price up to Rs. 155.
- March 2025: As the fiscal year ends, an uptick due to positive year-end results is expected, targeting Rs. 160.
- April 2025: New fiscal year optimism may push the price to Rs. 165.
- May 2025: Steady growth and market performance predict a share price of Rs. 170.
- June 2025: Mid-year assessments could drive the price to Rs. 175.
- July 2025: Seasonal market fluctuations might stabilize the price at Rs. 172.
- August 2025: Project completions and positive news could raise the price to Rs. 180.
- September 2025: Increased market activity and investor confidence may drive the price to Rs. 185.
- October 2025: Festival season and economic growth could push the price to Rs. 190.
- November 2025: Continued growth and project completions might target Rs. 195.
- December 2025: Year-end results and overall market performance could close the year at Rs. 200.
Based on the technical aspects below, we predict the Tata Steel Share Price Target 2025.
Product Portfolio
Tata Steel boasts a diverse product mix catering to various industries. Its flat products include hot rolled coils, cold rolled coils, and galvanized steel, while its long products consist of wire rods, rebar, ferroalloys, tubes, bearings, and wires.
These products serve a wide range of sectors such as agriculture, automotive, construction, consumer goods, energy, and power, engineering, and material handling.
Market Position
In recent years, Tata Steel has significantly strengthened its market position. The company increased its market share in the Alloy Wire Rod business to 20% in FY21 from 12% in FY20, supported by a growing presence in the two-wheeler segment.
Additionally, in the automotive sector, Tata Steel’s domestic market share rose to 15% in FY21 from 12% in FY20, with a leadership position in commercial vehicles holding a 38% market share.
Production Volume
Tata Steel’s production capabilities are impressive. In FY22, the company produced approximately 839,000 tonnes of Direct Reduced Iron (DRI), around 684,000 tonnes of crude steel, and nearly 672,000 tonnes of rolled products.
These figures highlight Tata Steel’s robust production capacity and its ability to meet growing market demand.
Network and Distribution
The company’s extensive network includes over 250 distributors and more than 20,400 dealers.
With a 100% vehicle tracking system and coverage in approximately 95% of India’s districts, Tata Steel ensures efficient distribution and customer service across the country.
Geographical Presence
Tata Steel’s operations are predominantly based in India, with 92% of its activities in FY22 occurring domestically, compared to 91% in FY20.
The remaining 8% of operations in FY22 were outside India, reflecting a slight decline from 9% in FY20.
Manufacturing Capabilities
Tata Steel operates a state-of-the-art steel plant in Jamshedpur, Jharkhand, and a sponge iron plant in Keonjhar, Odisha. The company’s manufacturing capabilities include:
- Crude steel capacity: 1 MnTPA
- DRI: 1 MnTPA
- Iron ore mines: 2.5 MnTPA ROM
- Captive power capacity: 160 MW
Vertically Integrated Operations
Tata Steel’s vertically integrated operations ensure seamless production processes, from upstream facilities like sinter and pellet plants to downstream facilities like sponge iron kilns, blast furnaces, electric arc furnaces, wire rod/bar mills, captive power plants, a captive iron ore mine, and an underdeveloped coal mine.
New Product Development
The company has developed a 2.2 MnTPA CRM complex and a 6 MnTPA pellet plant, the widest cold rolling mill in India.
These developments signify Tata Steel’s commitment to innovation and expanding its product offerings.
Joint Venture with the UK Government
Tata Steel, in partnership with the UK government, is investing in Electric Arc Furnace steelmaking at the Port Talbot site.
The project, with a capital cost of £1.25 billion, includes a £500 million grant from the UK Government and the remaining £725 million funded by Tata Steel Limited.
Expected to be completed in 36 months, this project aims to eliminate the current cash losses in Tata Steel’s UK operations.
Amalgamation of Tata Steel Long Products (TSLP)
In November 2023, the National Company Law Tribunal (NCLT) approved the amalgamation of Tata Steel and Tata Steel Long Products Limited (TSLP).
Tata Steel issued 7,58,00,309 fully paid-up equity shares of Rs.1/- each to TSLP shareholders in a 67:10 exchange ratio.
Scheme of Amalgamation
In November 2020, Tata Steel’s board of directors approved schemes for the amalgamation of Tata Metaliks Ltd and Indian Steel and Wire Products Ltd into Tata Steel.
However, in July 2021, the scheme document was returned by SEBI due to non-compliance with securities law provisions.
Amalgamation of S & T Mining Co. Ltd.
In November 2023, the NCLT, Kolkata, approved the amalgamation of S & T Mining Co. Ltd. with Tata Steel Limited.
Capital Expenditure (Capex)
Tata Steel spent Rs 8,650 crores on Capex in H1FY24. The company is currently implementing a 5 MnTPA expansion at Kalinganagar and a 0.75 MnTPA Electric Arc Furnace project in Punjab.
Exceptional Items
Tata Steel assessed the potential impact of the Electric Arc Furnace-based decarbonization project and restructuring in the UK.
An impairment charge of Rs 12,560 crores was taken in standalone financial statements and Rs 2,746 crores in consolidated financial statements in Q2FY24.
Additionally, a charge of Rs 3,612 crores for restructuring and other provisions was recorded in consolidated financial statements.
Quarterly Results
The financial performance of Tata Steel over the quarters reflects its market dynamics and strategic initiatives. Key figures for recent quarters include:
| Quarter | Sales (Rs. Crores) | Expenses (Rs. Crores) | Operating Profit (Rs. Crores) | Net Profit (Rs. Crores) | EPS (Rs.) |
|---|---|---|---|---|---|
| Mar 2021 | 50,028 | 35,844 | 14,184 | 7,162 | 5.55 |
| Jun 2021 | 53,465 | 37,355 | 16,111 | 9,768 | 7.41 |
| Sep 2021 | 60,387 | 43,931 | 16,456 | 12,548 | 9.91 |
| Dec 2021 | 60,783 | 44,889 | 15,894 | 9,598 | 7.84 |
| Mar 2022 | 69,324 | 54,294 | 15,030 | 9,835 | 7.99 |
| Jun 2022 | 63,430 | 48,457 | 14,973 | 7,714 | 6.36 |
| Sep 2022 | 59,878 | 53,817 | 6,060 | 1,297 | 1.24 |
| Dec 2022 | 57,084 | 53,036 | 4,048 | -2,502 | -1.82 |
| Mar 2023 | 62,962 | 55,742 | 7,219 | 1,566 | 1.39 |
| Jun 2023 | 59,490 | 54,587 | 4,903 | 525 | 0.52 |
| Sep 2023 | 55,682 | 51,414 | 4,268 | -6,511 | -5.07 |
| Dec 2023 | 55,312 | 49,048 | 6,264 | 522 | 0.42 |
| Mar 2024 | 58,687 | 52,087 | 6,601 | 555 | 0.49 |
Conclusion
In conclusion, Tata Steel’s strategic initiatives, expansion projects, and robust market position forecast a promising future.
The Tata Steel Share Price Target 2025 we predicted may vary according to the market movement or market news. Please be careful before investing.
