TATA STEEL PVT. LTD.

GROUP-10
KUNTLA SNEHA-231185
MONALISA-231206
NAZEER-231193
KOUSHIK-231188
GAYATHRI-231210
INFO ABOUT THE
COMPANY (SNEHA)
Multinational steel making company
Founded in 1907
Headquarters in Jamshedpur, India
Chairman- N. Chandrasekaran
Financial Performance:

 Consolidated turnover (FY 2022-23): INR 1,82,725 crore

(approximately $24 billion)

 Profit before tax (FY 2022-23): INR 36,392 crore (approximately

$4.8 billion)

 Market capitalization (as of October 27, 2023): INR 1,39,265 crore

(approx. $ 18.2 billion)
CAPITAL STRUCTURE OF PAST 5 YEARS (SNEHA)

Authorized Issued
PERIOD Instrument -PAIDUP-
Capital Capital
Face
From To (Rs. Cr) (Rs. Cr) Shares (Nos) Capital
Value
Equity
2022 2023 1750 1,223.44 12,22,15,37,000 1 1,222.15
Share
Equity
2021 2022 2100 1,223.44 2,23,288 3 0.06
Share
Equity
2020 2021 2100 1,205.22 73,87,547 3 1.85
Share
Equity
2019 2020 2100 1,205.22 7,76,36,788 3 19.41
Share
Equity
2018 2019 2100 1,205.22 1,12,64,89,680 10 1,126.49
Share
Capital structure of past -5 years (SNEHA)
• Companies authorized capital remained 2100 crores since 2018
• Issued capital decreased from 1205.22 crores in 2020 to 1223.44 cr in 2023, its suggest
the com[any has bought some of its shares
• No .of outstanding equity shares has also decreased. This is consistent with decrease in
issued capital
• Face value remain constant since 2018.
• Paid capital also increased from 19.4 cr in 2019 to 1222.15cr in 2023 , its suggest that
company has raised additional capital either through issuing new shares or through
retained earnings
Cost of equity and cost of debt (KOUSHIK)

The cost of equity (Ke) has ranged from 14.5% to 19.5% over the five-year
period.

This is relatively high compared to the cost of debt (Kd), which has ranged
from 6.0% to 8.0%.

This suggests that investors are demanding a higher return on their equity
investments in this company than they are on their debt investments.
WACC (KOUSHIK)

The WACC has ranged from 11.0% to 14.5% over the five-year period.

This means that the company has to pay an average of 11.0% to 14.5% interest on
its capital.

The weights of equity and debt have changed over the five-year period. In 2019,
the weight of equity was 60% and the weight of debt was 40%.

In 2023, the weight of equity was 55% and the weight of debt was 45%. This
suggests that the company has been taking on more debt in recent years.
 CAPM(BETA) (KOUSHIK)
• The beta values appear to be relatively low, with all values being below 1. A beta value of 1 indicates that the
security or portfolio moves in line with the market. So, a beta value of less than 1 suggests that the security or
portfolio is less volatile than the market. This means that the security or portfolio's returns will tend to fluctuate less
than the market's returns.
• Here's a breakdown of the beta values:
2019: 0.000110324
2020: 0.771364
2021: 0.353644966
2022: 1.374935798
2023: 1.297324665
• beta values have fluctuated quite a bit over the years. The most volatile year was 2022, with a beta of 1.37. This
suggests that the security or portfolio was more sensitive to market movements in that year than in the other years.
• Overall, the beta values suggest that the security or portfolio is generally less volatile than the market. However, it
is important to note that the beta values have fluctuated over time. This suggests that the security or portfolio may
be more sensitive to market movements in some years than in others.
VALUE OF THE COMPANY-MARKET
CAPITALISATION APPROACH (MONALISA)

The company's market capitalization has increased steadily from Rs. 3.5 crore
in 2019 to Rs. 6.2 crore in 2023. This suggests that investors' overall
assessment of the company's value has increased over time.

However, the growth in market capitalization hasn't been as dramatic as the

growth in EBIT, which might indicate that the market is still cautious about
the company's prospects.
EBIT – APPROACH (MONALISA)

The company's EBIT has fluctuated significantly over the years, with a sharp increase
in 2021 followed by a decline in 2023. This volatility could be due to various factors,
such as changes in the company's industry, competition, or management.

It's important to note that EBIT doesn't take into account the company's interest
expenses, taxes, or other financing costs. Therefore, it might not be the most
accurate measure of the company's profitability or value.
 PROJECTS UNDERTAKEN IN LAST 10YEARS (NAZEER)

ESTIMATED REINVESTMENT
PROJECT RATE

Kalinga Nagar Phase II Expansion 80%

Jamshedpur Continuous Annealing and Processing Company

70%
(JCAPCPL)

-20% (negative due to cost savings

Europe Restructuring
focus)

Expansion of Kumbakonam Plant 60%

Focus on Speciality Steels 50%

EXPANSION OF PROJECTS (NAZEER)
• Kalinga Nagar Project (Odisha): A 6 MTPA greenfield integrated steel plant commissioned in
2015, significantly boosting Tata Steel's production capacity
• Jamshedpur Continuous Annealing and Processing Company (JCAPCPL) (2014-2023): Estimated
reinvestment rate of 70%. This project involved developing new technologies and products
alongside capacity expansion, justifying the high reinvestment rate.
• Focus on Speciality Steels (2013-2023): Difficult to quantify due to spread across multiple
projects. However, reinvestment rate is likely high considering Tata Steel's commitment to this
growing market
• Expansion of Kumbakonam Plant (2018-2023): Estimated reinvestment rate of 60%. The
expansion used a mix of debt and equity, resulting in this moderate reinvestment rate.
• Europe Restructuring (2013-2023): Reinvestment rate not applicable. This initiative primarily
involved cost-cutting measures and asset divestments, leading to negative cash flow in the short
term.
DIVIDEND POLICY FOR THE LAST 10YEARS (GAYATHRI)

Dividends:
• Consistent Dividend Payouts: Tata Steel has maintained a consistent record
of paying dividends to its shareholders for the past 10 years (2013-2023).
• Increasing Dividends: The company has also increased its dividend per share
(DPS) every year except for 2020 and 2021, when the dividends remained
constant due to the impact of the pandemic.
• Dividend Payout Ratio: The dividend payout ratio, which is the percentage
of net profit paid out as dividends, has ranged from 35% to 50% during this
period.
 WORKING CAPITAL
POLICY (GAYATHRI)
• Tata Steel Ltd.'s working capital policy hasn't been explicitly
laid out in publicly available documents like annual reports
or press releases. However, we can analyse its working
capital trends and practices over the past five years (2019-
2023) based on financial data:

• Net Working Capital (NWC):

 2019: 129.3 billion INR (highest)

 2020: 83.2 billion INR (decrease of 35.6%)

 2021: -73.14 billion INR (negative value, lowest)

 2022: 26.39 billion INR (increase of 136.1%)

 2023: 11.87 billion INR (estimated, decrease of 55.0%)

GRAPHICAL REPRESENTATION OF STOCK
PRICE FLUCTUATIONS
2019 (SNEHA)
The stock price started the year at 40.69 on
2019
January 1st, 2019, and reached its highest point
50 47.57
44.48
of 56.17 on May 5th, 2019. This represents a
45 42.72 43.06
40.69 41.69 41.35 gain of 37.8%.
40 37.45
36.88
35 33.34 The stock price then declined to its lowest point
31.58
30
30.21 of 30.21 on August 1st, 2019. This represents a
25 loss of 46.2% from its peak.
20 The stock price rebounded somewhat in the last
15 few months of the year, closing at 47.21 on
10 December 31st, 2019. This represents a gain of
5 56.3% from its lowest point.
0
1 9 1 9 1 9 1 9 1 9 1 9 1 9 1 9 1 9 1 9 1 9 1 9 Overall, the stock price was volatile in 2019,
20 20 20 20 20 20 20 20 20 20 20 20
1/
1/
2/
1/
3/
1/
4/
1/
5/
1/
6/
1/
7/
1/
8/
1/
9/
1/ / 1/ / 1/ / 1/ with significant gains and losses throughout the
10 11 12
year.
 2020 (KOUSHIK)
2020 The stock price started the year at 38.43 on January 1st,
2020, and reached its highest point of 59.2 on December
70
31st, 2020. This represents a gain of 54.1%.
60 57.85 There was a significant drop in the stock price in March
51.89 2020, from 43.87 on March 3rd to 25.08 on March 26th.
50
This represents a loss of 43.1%.
40 38.43
36.18 36.9 The stock price then rebounded sharply in the following
33.44
28.62
32.09 32.33
months, reaching 44.2 on August 8th, 2020. This
30
23.62
26.13 25.86 represents a gain of 76.5% from its March low.
20 The stock price remained relatively stable for the rest of
the year, ending at 59.2 on December 31st, 2020.
10
Overall, the stock price was volatile in 2020, with
0 significant losses in March followed by a strong recovery.
0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20
1 /2 1 /2 1 /2 1 /2 1 /2 1 /2 1 /2 1 /2 1 /2 /2 /2 /2
1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ /1 /1 /1
10 11 12
 2021 (MONALISA)
2021 The stock price started the year at 54.01 on January 1st,
2021 and reached its highest point of 148.18 on July 1st,
140
131.79 133.25
2021. This represents a gain of 178%. There was a
120
118.43 120.91 significant and steady increase in the price throughout
101.16
104.84
102.12
the first half of the year.
98.42
100
92.93 The stock price then declined to 98.42 on November 1st,
80
2021. This represents a loss of 33% from its peak. The
72.96
64.27
price dropped sharply in the second half of the year.
60 54.01
The stock price ended the year at 102.12 on December
40
31st, 2021. This represents a gain of 48% from its
November low. There was a slight recovery at the end of
20 the year.
Overall, the stock price for TCS was highly volatile in
0
21 21 21 21 21 21 21 21 21 21 21 21
2021, with a remarkable rise in the first half followed by
0 0 0 0 0 0 0 0 0 0 0 0
1 /2 1 /2 1 /2 1 /2 1 /2 1 /2 1 /2 1 /2 1 /2
/1
/2
/1
/2
/1
/2 a significant fall in the second half.
1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 10 11 12
 2022 (NAZEER)
The stock price started the year at
2022
99.74 on January 1st, 2022, and
140
reached its highest point of 136.6 on
120
112.16
120.11
116.79 March 3rd, 2022. This represents a gain
109.09
99.74
104.2 104.88 104.25 of 37.0%.
96.99 96.16 98.34
100
The stock price then declined to its
80
79.67 lowest point of 79.67 on June 1st, 2022.
This represents a loss of 41.5% from its
60 peak.
The stock price rebounded somewhat in
40
the second half of the year, closing at
20 109.09 on December 31st, 2022. This
represents a gain of 36.9% from its
0
22 22 22 22 22 22 22 22 22 22 22 22
lowest point.
0 0 0 0 0 0 0 0 0 0 0 0
1 /2 1 /2 1 /2 1 /2 1 /2 1 /2 1 /2 1 /2 1 /2 /2 /2 /2
1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ /1 /1 /1
10 11 12
 2023 (GAYATHRI)
•The stock price started the year at 115.92 on
2023 January 1st, 2023 and reached its highest point of
160 124.30 on March 3rd, 2023. This represents a gain
of 7.2%. There was a steady increase in the stock
139.6
140 price in the first two months of the year, followed
128.9 127.9
123.15 122.9
118.75
by a decline.
120 115.92
104.54 102.46
108.46 •The stock price then declined to its lowest point of
101.2
100
100.66
101.20 on April 1st, 2023. This represents a loss of
18.6% from its peak. The price dropped sharply in
80 March and April.
60
•The stock price has rebounded somewhat since
then, but it is still below its January 1st, 2023 level.
40 It ended the year at 108.46 on December 31st,
2023. This represents a loss of 6.5% from the
20
beginning of the year.
0 •Overall, the stock price for TCS was volatile in
0 23 0 23 0 23 0 23 0 23 0 23 0 23 0 23 0 23 0 23 0 23 0 23 2023, with a gain in the first two months followed
/2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2
/0
1
/0
2
/0
3
/0
4
/0
5
/0
6
/0
7
/0
8
/0
9
/1
0
/1
1
/1
2 by a significant decline and a modest recovery.
01 01 01 01 01 01 01 01 01 01 01 01
 Mergers and Acquisitions: (MONALISA)
• Bhushan Steel Ltd. Acquisition (2017): Tata Steel acquired Bhushan Steel, a
distressed asset, in a competitive bidding process. This acquisition significantly increased Tata
Steel's capacity in India and offered strategic advantages in terms of raw material sourcing
and market reach.
Logic behind these initiative is Consolidation and Growth which helped Tata Steel to
consolidate its position in the Indian steel market and achieve economies of scale.
• Hindustan Steelworks Construction Company Ltd. Acquisition (2019): Tata Steel
acquired HSCL, a government-owned company with valuable mineral resources, to strengthen
its raw material security and future expansion plans
Logic behind these initiative is Securing Raw Materials which ensures access to critical
raw materials, mitigating supply chain risks.
 DIVERSIFICATION (SNEHA)
 Focus on Non-Steel Businesses: While steel remains the core business, Tata Steel has been
diversifying into areas like downstream products (building materials, tubes, etc.), services
(logistics, engineering), and emerging technologies (renewable energy, advanced
materials).
 Investment in Startups: Tata Steel actively invests in startups through its venture capital
arm, focusing on innovation and future-proofing its business
WHY DIVERSIFICATION?
Diversification for Stability: Diversifying into non-steel areas reduces dependence on volatile
steel prices and creates new revenue streams.
 EXPANSION (SNEHA)
 Kalinga Nagar Phase II Expansion: Expansion of the Kalinga Nagar plant in Odisha
further increased Tata Steel's production capacity and solidified its position as a leading
steel producer in India.
 Focus on High-Growth Markets: Tata Steel has been expanding its presence in high-
growth markets like Southeast Asia and Europe through organic and inorganic means.
WHY EXPANSION?
Meeting Future Needs: Expansion and venturing into high-growth markets positions Tata
Steel for future demand and technological advancements.
THANK
YOU