# Tata Steel (TTST.LSE)

Canonical: https://gigainvestors.com/s/TTST.LSE

Analysis as of: 2026-10-16T07:35:15.166Z. Financial observations: FY2005–FY2026.

Listing currency: USD. Reporting currency: INR.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $18.50 per share; close as of 2026-10-15.

Estimated value: low $3.09 per share, central $3.41 per share, high $3.84 per share. Buy at or below the central value $3.41 per share. Valuation as of 2026-10-16T07:35:15.166Z; scenarios are not confidence intervals.

Expected annual return: 4.0% at the stated quote. About 4.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 2

- Operating margin variation: 0.48×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.09×

- FY2018: 0.13×

- FY2019: 0.15×

- FY2020: 0.04×

- FY2021: 0.11×

- FY2022: 0.22×

- FY2023: 0.08×

- FY2024: 0.05×

- FY2025: 0.07×

- FY2026: 0.10×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 7.8%

- ROIC, second-lowest year: 5.0%

- Typical minus recent gross margin: -5.1 pp

- Typical gross margin (annual median): 51.1%

- Recent gross margin (lower of latest and 3-year median): 56.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.1%

- ROIC including acquisitions, ten-year median: 3.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 6.4%

- FY2018: 11.0%

- FY2019: 9.7%

- FY2020: 2.8%

- FY2021: 7.9%

- FY2022: 27.5%

- FY2023: 7.7%

- FY2024: 5.0%

- FY2025: 5.8%

- FY2026: 8.8%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.58×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: INR 338B

- Net income, five-year total: INR 587B

- Return on incremental invested capital: 31.8%

- Working capital / revenue, annual change: -1.0 pp

- Working capital / revenue, change between three-year averages: -6.9 pp

- Working capital / revenue, final three-year average: 8.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.97×

- FY2023: 0.29×

- FY2024: 3.12×

- FY2025: -0.88×

- FY2026: 0.86×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 9.7% vs 5.8%

- Per-share earnings: -5.15 to 27.48 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.6%

- Ordinary dilution, 5-year annual growth: 0.6%

- Market cap gain: INR 1.78T

- Cumulative retained earnings: INR 511B

- Diluted shares, 10-year annual growth: 2.6%

- Diluted shares, 5-year annual growth: 0.6%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value change: INR 32.62

- Per-share value, starting three-year median: INR -5.15

- Per-share value, ending three-year median: INR 27.48

- Average buyback yield: 0.0%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: INR 177B

- Cumulative net income, 10 years: INR 871B

- ROIC, first three-year median: 9.7%

- ROIC, last three-year median: 5.8%

Chart: Earnings per share; fiscal year observations.

- FY2017: INR -42.23

- FY2018: INR 115.07

- FY2019: INR 82.43

- FY2020: INR 12.36

- FY2021: INR 61.89

- FY2022: INR 328.62

- FY2023: INR 71.67

- FY2024: INR -35.32

- FY2025: INR 27.48

- FY2026: INR 86.60

### accounting: pass

- Sloan accruals: -8.1%

- Receivables to sales index (DSRI): 0.88×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.25×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.20×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -8.7%

- FY2018: 2.6%

- FY2019: -6.5%

- FY2020: -7.4%

- FY2021: -15.0%

- FY2022: -1.5%

- FY2023: -4.5%

- FY2024: -9.0%

- FY2025: -7.2%

- FY2026: -8.1%

## Holders

## Price story

Price needs cash profits to grow 25.3% a year for ten years · sales +6.2%

Story as of 2026-10-16T10:00:04.218Z; price observation 2026-10-15.

Price needs cash profits to grow 25.3% a year for ten years

### Sales · FY2025–2026

sales +6.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: INR 1.12T 

- FY2018: INR 1.32T 

- FY2019: INR 1.55T 

- FY2020: INR 1.46T 

- FY2021: INR 1.55T 

- FY2022: INR 2.42T 

- FY2023: INR 2.42T 

- FY2024: INR 2.27T 

- FY2025: INR 2.17T 

- FY2026: INR 2.30T 

### Gross margin · FY2026

gross margin 59.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 56.9% 

- FY2018: 52.7% 

- FY2019: 48.6% 

- FY2020: 42.7% 

- FY2021: 50.4% 

- FY2022: 51.8% 

- FY2023: 38.9% 

- FY2024: 39.5% 

- FY2025: 56.2% 

- FY2026: 59.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in steel; annual sales are INR 2.3 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.166Z); FY2026: revenue 2302934700000; grossProfit 1366757800000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TTST.LSE: Tata Steel Limited engages in the manufacture and distribution of steel products in India and internationally. It offers reinforcement bars (rebars) and wire rods, cut-and-bend reinforcement bars, welded wire mesh, prefabricated cages (pre-cages), steel couplers and carpet reinforcement; hot-rolled, cold rolled, coated coil, tubes, rebar, wire rods; and metallic coated, pre-finished steels, alloy steels, and profiles and construction systems. The company also provides solutions in building envelopes, structural, fit-out, foundations, and highway engineering products, as well as operates steel service centers. It serves agricultural, automotive steels, construction, consumer goods, energy and power, engineering, and material handling industries. It has a strategic collaboration with Hindustan Zinc Limited to scale low-carbon zinc solutions. The company was incorporated in 1907 and is based in Mumbai, India.

### Why customers stay

Margins ranged from 39.5% to 59.3% during 2024–26; it earns 7.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.166Z); FY2024: grossProfit / revenue = 39.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.166Z); FY2025: grossProfit / revenue = 56.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.166Z); FY2026: grossProfit / revenue = 59.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.166Z); 10-year return on capital observations [[2017,0.06374364697861847],[2018,0.10998817624246864],[2019,0.09737070415482717],[2020,0.027521207630650104],[2021,0.07934860400288714],[2022,0.2751245244111542],[2023,0.07715352853559218],[2024,0.050258706106587885],[2025,0.05809057660772103],[2026,0.08797417545537738]]; median 0.07825106626923967. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 28% of cash earnings on expansion; earns 31.8% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.166Z); FY2018: growth capex 15168400000; upkeep 59616600000; owner earnings 134343300000. Growth capex / owner earnings = 0.11290775200549637.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.166Z); FY2019: growth capex 15116800000; upkeep 75793200000; owner earnings 102183300000. Growth capex / owner earnings = 0.1479380681579084.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.166Z); FY2021: growth capex 0; upkeep 69785900000; owner earnings 97452700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.166Z); FY2022: growth capex 14133300000; upkeep 91088700000; owner earnings 388073960000. Growth capex / owner earnings = 0.036419088773696644.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.166Z); FY2023: growth capex 0; upkeep 141424900000; owner earnings 25842500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.166Z); FY2026: growth capex 26020400000; upkeep 119570100000; owner earnings 93088120000. Growth capex / owner earnings = 0.27952439043779165.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.166Z); Incremental return on capital 0.31848415988783607, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.166Z); Dividend observations: [[2017,7913200000],[2018,9823500000],[2019,11862000000],[2020,15065500000],[2021,11505300000],[2022,30201200000],[2023,62926300000],[2024,44288000000],[2025,44898700000],[2026,44898700000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TTST.LSE SharesStats.PercentInsiders = 0 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 25.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.166Z); Ten-year compound average after fade. Initial solved rate 0.3570315710291617. Price 18.5; FX 0.01054; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share -54.620099396601965 → FY2026 74.68409250456305. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $6.00 per share

- 2016-11: $6.07 per share

- 2016-12: $5.63 per share

- 2017-01: $6.85 per share

- 2017-02: $7.23 per share

- 2017-03: $7.37 per share

- 2017-04: $6.92 per share

- 2017-05: $7.65 per share

- 2017-06: $8.40 per share

- 2017-07: $8.71 per share

- 2017-08: $9.87 per share

- 2017-09: $9.95 per share

- 2017-10: $10.65 per share

- 2017-11: $10.15 per share

- 2017-12: $11.40 per share

- 2018-01: $11.60 per share

- 2018-02: $10.25 per share

- 2018-03: $8.68 per share

- 2018-04: $8.82 per share

- 2018-05: $8.48 per share

- 2018-06: $8.26 per share

- 2018-07: $8.20 per share

- 2018-08: $8.40 per share

- 2018-09: $7.92 per share

- 2018-10: $7.24 per share

- 2018-11: $7.62 per share

- 2018-12: $7.42 per share

- 2019-01: $6.78 per share

- 2019-02: $6.96 per share

- 2019-03: $7.40 per share

- 2019-04: $8.00 per share

- 2019-05: $6.90 per share

- 2019-06: $7.20 per share

- 2019-07: $6.18 per share

- 2019-08: $4.78 per share

- 2019-09: $4.97 per share

- 2019-10: $5.38 per share

- 2019-11: $5.88 per share

- 2019-12: $6.76 per share

- 2020-01: $5.96 per share

- 2020-02: $5.04 per share

- 2020-03: $3.72 per share

- 2020-04: $4.05 per share

- 2020-05: $3.85 per share

- 2020-06: $4.21 per share

- 2020-07: $4.79 per share

- 2020-08: $5.46 per share

- 2020-09: $4.86 per share

- 2020-10: $5.30 per share

- 2020-11: $7.84 per share

- 2020-12: $8.66 per share

- 2021-01: $8.36 per share

- 2021-02: $9.46 per share

- 2021-03: $11.50 per share

- 2021-04: $13.75 per share

- 2021-05: $15.00 per share

- 2021-06: $15.40 per share

- 2021-07: $19.10 per share

- 2021-08: $20.10 per share

- 2021-09: $17.40 per share

- 2021-10: $18.00 per share

- 2021-11: $13.90 per share

- 2021-12: $14.80 per share

- 2022-01: $14.50 per share

- 2022-02: $16.45 per share

- 2022-03: $16.90 per share

- 2022-04: $16.25 per share

- 2022-05: $13.10 per share

- 2022-06: $10.85 per share

- 2022-07: $13.95 per share

- 2022-08: $13.25 per share

- 2022-09: $12.40 per share

- 2022-10: $12.80 per share

- 2022-11: $13.00 per share

- 2022-12: $13.55 per share

- 2023-01: $14.75 per share

- 2023-02: $12.70 per share

- 2023-03: $12.95 per share

- 2023-04: $13.15 per share

- 2023-05: $12.30 per share

- 2023-06: $13.35 per share

- 2023-07: $14.80 per share

- 2023-08: $14.70 per share

- 2023-09: $15.35 per share

- 2023-10: $15.10 per share

- 2023-11: $15.60 per share

- 2023-12: $16.40 per share

- 2024-01: $16.00 per share

- 2024-02: $16.75 per share

- 2024-03: $18.55 per share

- 2024-04: $19.80 per share

- 2024-05: $19.60 per share

- 2024-06: $20.60 per share

- 2024-07: $20.70 per share

- 2024-08: $18.30 per share

- 2024-09: $19.85 per share

- 2024-10: $17.70 per share

- 2024-11: $16.90 per share

- 2024-12: $15.80 per share

- 2025-01: $15.55 per share

- 2025-02: $15.80 per share

- 2025-03: $17.90 per share

- 2025-04: $16.70 per share

- 2025-05: $18.55 per share

- 2025-06: $18.65 per share

- 2025-07: $18.00 per share

- 2025-08: $17.75 per share

- 2025-09: $19.05 per share

- 2025-10: $20.00 per share

- 2025-11: $18.90 per share

- 2025-12: $19.70 per share

- 2026-01: $21.30 per share

- 2026-02: $22.90 per share

- 2026-03: $21.00 per share

- 2026-04: $22.10 per share

- 2026-05: $22.40 per share

- 2026-06: $20.50 per share

- 2026-07: $20.20 per share

- 2026-08: $20.40 per share

- 2026-09: $18.85 per share

- 2026-10: $18.20 per share

## Annual estimated value (USD per share)

- FY2021: low $10.24 per share, central $11.52 per share, high $13.22 per share

- FY2022: low $18.26 per share, central $22.27 per share, high $25.68 per share

- FY2023: low $17.20 per share, central $21.85 per share, high $25.36 per share

- FY2024: low $2.71 per share, central $3.19 per share, high $3.66 per share

- FY2025: low $2.93 per share, central $3.22 per share, high $3.62 per share

- FY2026: low $3.02 per share, central $3.34 per share, high $3.76 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.