Tata Steel's intrinsic value using Intellectual Capital analysis

Tata Steel

BSE : 500470

|

NSE : TATASTEEL

Industry : Steel

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ISIN : INE081A01012

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FreeFloat : 70.00%

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FnO : Yes

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LotSize : 1500

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Intellectual Capital (IC)	19,927.61
Net Worth (NW)	79,240.21
Intrinsic Worth (IW)	99,167.82
Market Cap (MC)	56,840.81
Economic Value Added	-4,207.40

Discount Rate	%
Liquidity Premium	%

Knowledge Basis (IC/IW)	20.09%
IC Gross Margin (EBITDA/IC)	129.00%
IC Net Margin (NPT/IC)	46.27%
Knowledge Turnover (Sales/IC)	7.88
Market to Intrinsic Value (MC/IW)	0.57

As Of	Intrinsic Value	Market Price
31 Dec 2019	Rs. 823.57	Rs. 472.05
22 May 2020	-	Rs. 274.45

Fundamental - medium term		Technical - near term		Combined outlook
EVA > 0 : No	Sell	10 DMA : Rs. 274.86	Sell	Strong Sell
KB > 50% : No		50 DMA : Rs. 280.75
0 < M2IV < 1 : Yes		Vol-Price trend : Falling

Question 3 - Is this stock undervalued?

Question 2 - Does this business have significant knowledge assets?

Question 1 - Is this business generating enough profits to cover its cost of capital?

* EVA is a registered trademark of Stern Stewart and Co.

Quarterly Results (Rs. Cr)

Quarter

Type*

Sales

Income

EBITDA

EBIT

PBT

PAT

NPT

Mar-17
C
35304.89
35457.06
3111.55
1522.33
259.21
-716.75
224.60

Jun-17
C
30973.33
31128.80
4518.59
3017.46
1673.75
921.09
-2620.71

Sep-17
C
32464.14
32717.35
4949.03
3475.75
2125.82
1017.78
-3216.69

Dec-17
C
33446.60
33672.48
4897.07
3421.98
2094.70
1135.92
1325.01

Mar-18
C
36132.30
36407.19
18208.51
16696.35
15215.48
14688.02
19197.19

Jun-18
C
37832.79
38180.05
6516.18
4710.55
3040.41
1936.76
3681.02

Sep-18
C
43544.10
43898.53
9509.02
7601.11
5448.05
3121.68
1305.45

Dec-18
C
41219.91
41431.37
7017.19
5091.69
3151.74
1751.19
1925.28

Mar-19
C
42423.86
42913.73
8070.79
6190.25
4252.50
2295.25
2194.36

Jun-19
C
35947.11
36198.21
5696.22
3613.38
1806.95
701.97
376.17

Sep-19
C
34579.18
34762.73
3991.99
1864.83
-6.54
3302.31
4483.11

Dec-19
C
35520.41
35613.34
3404.51
1385.84
-544.74
-1228.53
-2778.04

* C - Consolidated, S - Standalone