Why Invest in Tata Steel Limited?
Tata Steel is not only one of the leading brands but is also reported to be on the list of Fortune's top 500 most prominent corporations in the world.
Their steel plants produce Alloy, Cast Iron, Soft Iron, Iron, Cables, Wires, Locomotive parts, Tinplate, Machinery, and Agricultural equipment.
Despite many significant competitors in the industry, the firm has remained consistent in making profits. However, at times, with market fluctuations and low business sales, the company has performed low than the desired expectations.
The company had decent sales in the last six quarters and notably, higher sales in the Q4 (i.e., March 2017).
Though the brand is widespread and has plenty of advantages in the steel business, its drawbacks can indeed not be ignored. The company has a low-interest coverage ratio and has incurred many expenses. Understand that for consistent profit; costs should be appropriately maintained.
The annual sales for the last years were reduced every year. In 2012, it was Rs.1,32,899 crore, which now has turned into Rs.1,17,1551 crore in 2017. Also, its investments, as well as assets, are significantly decreasing.
Company's Wealth And Performance of Tata Steels:
Tata Steel released its consolidated financial statements for the Q3 (Third Quarter) FY (Fiscal Year) 2018. The report stated that the net income for the third quarter increased to Rs.33,672.48 crore from Rs.29,154.75 crore in Q3 FY 2017.
The company has performed remarkably well in net profit as well. The consolidated net PAT (Profit after Tax) for the quarter is 1,143.88 crore, and there is an immense growth from the Q3 FY 2017 by 98%, which was at Rs.231.90 crore.
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