Tata Steel Overtakes Trent as 4th Largest Tata Group Company by Market Cap: A Major Market Shift
Tata Steel : In a significant shift within the Tata Group, Tata Steel has reclaimed its position as the fourth-largest company by market capitalization, surpassing Trent Ltd. As of March 6, 2025, Tata Steel’s market capitalization stands at approximately ₹1.87 lakh crore, edging past Trent’s ₹1.80 lakh crore.
Price Movement and Market Dynamics
Tata Steel’s shares have experienced a notable uptick, trading at ₹150.35 per share, reflecting a 2.87% increase from the previous closing price of ₹146.15.
etnownews.com This positive movement contrasts with Trent’s performance; the retail arm of the Tata Group has seen its shares decline by approximately 30% this year, leading to a decrease in its market capitalization.
Historical Context
In October 2024, Trent’s market capitalization soared to ₹2.93 lakh crore, surpassing Radhakishan Damani-owned Avenue Supermarts, which stood at ₹2.73 lakh crore at that time.
etnownews.com This surge positioned Trent as a significant player within the Tata conglomerate. However, the subsequent correction in its stock price has led to a realignment in the group’s market capitalization hierarchy.
Tata Group’s Market Capitalization Landscape
The Tata Group, India’s largest conglomerate, boasts a combined market capitalization of approximately ₹27.5 lakh crore. The current standings of its top companies by market capitalization are as follows:
| Company | Market Capitalization (₹ lakh crore) |
|---|---|
| Tata Consultancy Services | 12.84 |
| Titan Company | 2.74 |
| Tata Motors | 2.35 |
| Tata Steel | 1.87 |
| Trent Ltd | 1.80 |
Brokerage Recommendations
Financial analysts have taken note of Tata Steel’s performance. Tradebrains, a reputable research firm, has issued a ‘Buy’ recommendation for Tata Steel, setting a target price of ₹168 per share. This suggests a potential upside of approximately 11% from the current trading price of ₹150.
Industry Overview
The global steel industry has faced challenges, with prices remaining subdued. China’s steel prices have hovered around $480 per ton despite governmental stimulus efforts. Additionally, China’s record steel exports of 111 million tons in 2024 have exerted pressure on Indian steel prices, coinciding with a slowdown in domestic demand growth. In response, India’s Directorate General of Trade Remedies (DGTR) has initiated investigations to assess safeguard duties on rising steel imports.
Strategic Initiatives
Tata Steel has been proactive in implementing strategic measures to bolster its market position:
- Customer-Centric Approach: Approximately 75% of Tata Steel’s automotive steel sales are processed or ready-to-use, underscoring its commitment to delivering value-added products to clients.
- E-Commerce Expansion: The ‘Aashiyana’ platform caters to homebuilders, offering a range of services and products, supported by over 30 service centers across the country.
- Sustainability and Inclusion: The company emphasizes responsible growth by implementing measures to reduce emissions and promote workplace equality. Notably, Tata Steel has introduced an all-women shift at one of its Indian mines, setting a precedent for gender inclusion in the industry.
Future Outlook
Looking ahead, Tata Steel has outlined several initiatives aimed at enhancing operational efficiency and financial performance:
- Kalinganagar Operations: The company plans to enhance operations at its Kalinganagar plant, focusing on improving cost efficiency and productivity.
- Working Capital Management: An expected release of over ₹4,000 crore in net working capital is anticipated through better management practices.
- Cost Reduction in Europe: Tata Steel is implementing cost reduction initiatives in its Netherlands operations, which are expected to drive improved performance and position the company for stronger financial results in the fiscal year 2026.
Financial Ratios and Company Profile
To provide a comprehensive understanding of Tata Steel’s financial health, here are key financial ratios and metrics:
| Metric | Value |
|---|---|
| Market Capitalization | ₹1,87,626 Cr. |
| Current Price | ₹150 |
| 52-Week High / Low | ₹185 / ₹123 |
| Stock P/E | 66.3 |
| Book Value | ₹72.2 |
| Dividend Yield | 2.39% |
| Return on Capital Employed | 7.02% |
| Return on Equity | 6.55% |
| Face Value | ₹1.00 |
| Promoter Holding | 33.2% |
| Price to Book Value | 2.08 |
| Debt to Equity Ratio | 1.10 |
| Pledged Percentage | 0.00% |
| Industry P/E | 17.2 |
| Graham Number | ₹59.6 |
| Intrinsic Value | ₹46.7 |
| Relative Strength Index (RSI) | 71.1 |
| Earnings Per Share (EPS) | ₹2.19 |
| Number of Equity Shares | 1,248 million |
| PEG Ratio | -11.4 |
| 200-Day Moving Average | ₹144 |
| Free Cash Flow (3 Years) | ₹44,866 Cr. |
| Free Cash Flow (5 Years) | ₹92,815 Cr. |
| Debt | ₹99,392 Cr. |
| Return on Assets | 2.55% |
Note: Financial data is as of March 6, 2025.
Tata Steel Limited is a global steel manufacturer with an annual crude steel capacity of approximately 35 million tons per annum. The company operates in the manufacturing and distribution of steel products worldwide, maintaining a strong presence
For more market insights, follow our news.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.