Tata Metaliks Limited

NSE: TATAMETALI · Iron & Steel

Snapshot

Unlock Tata Metaliks Limited's vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

Tata Metaliks Limited is a subsidiary of Tata Steel Limited that manufactures and sells pig iron and ductile iron pipes. The company serves diverse sectors including automotive, infrastructure, and water distribution through its established product brands.

Business Model

The company generates revenue by producing and selling pig iron for foundry applications and ductile iron pipes for water infrastructure projects. It also monetises by-products such as granulated blast furnace slag to the cement industry.

Growth Outlook

Growth is driven by increasing demand for water infrastructure development and the expansion of industrial casting applications. The company continues to leverage its parentage under Tata Steel to enhance operational efficiencies.

Key Risks

  • Raw Material Price Volatility. Fluctuations in the prices of iron ore, coke, and scrap metal directly impact the company's manufacturing margins.
  • Cyclicality of Steel Industry. The business is highly sensitive to economic cycles and industrial demand, which can lead to significant revenue volatility.
  • Regulatory and Environmental Compliance. Stringent environmental regulations regarding emissions and waste management in the steel sector may necessitate increased capital expenditure.
  • Infrastructure Project Delays. As a supplier to water and infrastructure projects, the company is vulnerable to delays in government project execution and funding.

Price

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Key Metrics

REVENUE

₹3,121 Cr

TTM · standalone

+2.6%YoY

NET PROFIT

₹114 Cr

TTM · standalone

+9.8%YoY

EPS

₹36.02

TTM · standalone

+9.5%YoY

RETURN ON EQUITY

7.4%

TTM · standalone

+0.3 ppYoY

RETURN ON CAPITAL EMPLOYED

10.6%

TTM · standalone

+0.3 ppYoY

EBITDA MARGIN

8.7%

TTM · standalone

+1.9 ppYoY

NET PROFIT MARGIN

5.9%

Q2 FY24 · standalone

+4.3 ppYoY

Peers · Iron & Steel

CompanyMkt Cap (Cr)P/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
Tata Metaliks LimitedTATAMETALI
3,5062.6%8.7%7.4%10.6%
Vedanta Ltd.VEDL
2,55,87610.673.30-17.8%30.4%57.9%18.7%-42.4%
The Tinplate Company of India LimitedTINPLATE
4,505-12.0%5.4%7.8%10.6%
Tata Steel Long Products LimitedTATASTLLP
3,7400.5%-119.3%4.9%
ISMT LimitedISMTLTD
3,663-1.9%14.5%10.7%16.1%
Texmaco Infrast.TEXINFRA
1,170132.5376.749.9%109.7%0.9%1.2%+13.6%

As of Q2 FY24

Financials