AI Summary
✦ ClarthaTata Steel is an integrated steel manufacturer and distributor serving India and international markets. Revenue spans construction products, automotive and engineering steels, and coated, rolled, and alloy steel products. Its India performance in Q1 FY2027 supported growth, while improved margins and a 6.2% revenue increase indicate better operating conditions. Profit rose 215.6%, and improving margins suggest operating leverage, though reported ROE is unavailable. Debt-to-equity of 89.02 implies substantial leverage, which can amplify returns but increases financial risk. At 21.2 times earnings, valuation appears fair relative to the sector, but the outlook depends on sustaining India-led growth and managing balance-sheet pressure.
Price Forecast
Probabilistic Range
Probabilistic lognormal cone using 1Y realized volatility and analyst-target drift when available.
Revenue Forecast
₹ CrEPS Forecast
₹ / shareMulti-factor synthesis of 5 key dimensions
From 35 analysts
Fundamentals
Fundamentals institutional score is 70 using growth durability 70.2.
Valuation
Valuation institutional score is 51 using relative multiple z-scores where peer dispersion is available.
Analyst Consensus
Analyst View institutional score is 56 using mean target upside 14.6%; dispersion penalty 15.6; recommendation breadth from available consensus.
Technical Structure
Technicals institutional score is 67 using EMA-20 continuation within 5% tolerance; VCP range/volume contraction proxy.
Market Sentiment
Recent news flow is balanced or not decisive enough to tilt the tape. Based on 4 recent ticker-linked news items.
Signal Summary
Market intelligence remains Neutral. fundamentals and technical structure provide support, while valuation and market sentiment remain considerations.
Composite weights: Fundamentals 25%, Valuation 20%, Analyst Consensus 20%, Technical Structure 20%, Market Sentiment 15%.
Key Data Points
Important Note: This is market intelligence, not investment advice. Always conduct your own research and consider your financial goals and risk tolerance.
Valuation Metrics
Trading 23.3% above historical median. Valuation is rising — currently in the strongly overvalued zone (z-score: +1.28). Confidence: 83%.
Live forward EPS implies next-12-month EPS of ₹17.90. Applying the stock's normalized valuation corridor produces a fair range of ₹269.57 to ₹344.04, with base value near ₹308.42 (+62.1% vs current price).
Live forward estimate anchored to the company's historical valuation corridor.
Forward EPS
₹17.90
Forward P/E
10.6x
Base Fair Value
₹308.42
Fair Range
₹269.57 - ₹344.04
Upside To Base
+62.1%
Estimate Source
Live forward EPS
Growth Estimate
+11.4%
5Y Average
15.23
Current
21.24
Overvalued
19.22
Undervalued
15.06
5Y Average
6.68
Current
9.46
Overvalued
7.82
Undervalued
5.19
5Y Average
2.30
Current
2.32
Overvalued
2.64
Undervalued
1.95
Peers & Comparison
Sector: Materials · Theme: Iron & Steel
| Company | Rev. Growth | Margin | P/E | vs Avg | 52W Perf. |
|---|---|---|---|---|---|
JSW STEEL LIMITED JSWSTEELIron & Steel | +9.8% | 13.1% | 12.8x Undervalued | -69% vs avg | +23.4% |
JINDAL STAINLESS LIMITED JSLIron & Steel | +10.5% | 7.4% | 18.6x Undervalued | -55% vs avg | +8.3% |
JINDAL STEEL LIMITED JINDALSTELIron & Steel | +25.9% | 4.8% | 42.2x Fair | +2% vs avg | +11.3% |
BHARAT FORGE LTD BHARATFORGIron & Steel | +17.5% | 6.4% | 92.4x Premium | +123% vs avg | +94.3% |
TATA STEEL LIMITED trades at a discount (21.5x vs peer avg 41.5x), suggesting potential undervaluation relative to the Iron & Steel cohort. Peers include JSW STEEL LIMITED, JINDAL STAINLESS LIMITED, JINDAL STEEL LIMITED — selected based on business model, industry classification, market cap similarity, and business theme alignment.
Financials
Real statement data for revenue, earnings quality, conversion, and balance-sheet coverage. Monetary values are shown in Rs crore.
Latest revenue
₹35.58K CrDec 2025Latest net profit
₹4.18K CrDec 2025Latest EPS
₹3.06Dec 2025Net margin
16.6%Dec 2025Performance
Bars show revenue and net profit. The line shows net margin.
- Revenue
- Net income
- Net margin %
Earnings
Revenue is shown in crores. EPS is rupees per share.
- Revenue
- EPS
Revenue to profit conversion
Bridge from operating numbers to profit for the latest reported period.
Latest reported period: Dec 2025
Debt level and coverage
Debt, cash and free cash flow compared on the same crore scale.
- Debt
- Free cash flow
- Cash & equivalents
Results
| Metric | Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 38,048 | 35,487 | 34,198 | 34,686 | 36,541 | 32,958 | 32,399 | 32,760 | 34,399 | 31,014 | 34,680 | 35,578 |
| Expenses | 29,393 | 28,798 | 27,329 | 26,392 | 28,513 | 26,187 | 26,237 | 26,828 | 27,952 | 24,000 | 26,560 | 27,847 |
| Operating Profit | 7,151 | 5,206 | 5,386 | 6,774 | 6,507 | 5,247 | 4,606 | 4,377 | 4,829 | 5,388 | 6,401 | 5,905 |
| OPM % | 18.79% | 14.67% | 15.75% | 19.53% | 17.81% | 15.92% | 14.22% | 13.36% | 14.04% | 17.37% | 18.46% | 16.6% |
| Other Income | 825 | 1,492 | 827 | 329 | 484 | 377 | 853 | 465 | 569 | 566 | 610 | 797 |
| Interest | 1,096 | 1,020 | 1,116 | 1,038 | 926 | 925 | 1,133 | 1,080 | 1,101 | 1,271 | 1,237 | 1,290 |
| Depreciation | 1,504 | 1,484 | 1,482 | 1,519 | 1,522 | 1,524 | 1,556 | 1,556 | 1,618 | 1,627 | 1,718 | 1,826 |
| Profit before tax | 6,881 | 5,677 | 5,097 | 6,064 | 6,065 | 4,699 | 4,326 | 3,762 | 4,298 | 4,683 | 5,774 | 5,412 |
| Tax % | 24.26% | 8.15% | 12.3% | 22.64% | 22.75% | 24.14% | 27.62% | 34.45% | 26.15% | 26.56% | 23.26% | 22.8% |
| Net Profit | 5,212 | 5,214 | 4,470 | 4,691 | 4,685 | 3,565 | 3,131 | 2,466 | 3,174 | 3,439 | 4,431 | 4,178 |
| EPS in Rs | 3.34 | 4.18 | -6.82 | 3.76 | 3.28 | 2.67 | 2.88 | 3.11 | 2.54 | 2.82 | 3.25 | 3.06 |
All values in Rs. Crore unless otherwise stated. Source: CMIE Prowess, Quarterly Interim Standalone.