Tata Steel's intrinsic value using Intellectual Capital analysis

Tata Steel

BSE : 500470

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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 : 850

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Intellectual Capital (IC)	40,345.22
Net Worth (NW)	87,211.58
Intrinsic Worth (IW)	127,556.80
Market Cap (MC)	140,473.50
Economic Value Added	5,255.62

Discount Rate	%
Liquidity Premium	%

Knowledge Basis (IC/IW)	31.63%
IC Gross Margin (EBITDA/IC)	79.67%
IC Net Margin (NPT/IC)	29.02%
Knowledge Turnover (Sales/IC)	3.99
Market to Intrinsic Value (MC/IW)	1.10

As Of	Intrinsic Value	Market Price
30 Jun 2021	Rs. 1,059.33	Rs. 1,166.60
20 Sep 2021	----	Rs. 1,253.10
20 Sep 2021	----	-132.80 -10.60%

Fundamental - medium term		Technical - near term		Combined outlook
EVA > 0 : Yes	Sell	10 DMA : Rs. 1,418.92	Sell	Strong Sell
KB > 50% : No		50 DMA : Rs. 1,379.89
0 < M2IV < 1 : No		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

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

Mar-20
C
33769.95
35085.86
724.67
425.63
-1499.45
-1615.35
-1073.54

Jun-20
C
24288.51
24481.09
771.45
-1339.37
-3337.64
-4648.13
-4139.26

Sep-20
C
37153.99
37376.13
6449.63
4188.50
2248.26
1665.07
1739.97

Dec-20
C
39594.09
39809.05
9613.34
7338.58
5560.70
4010.94
3942.19

Mar-21
C
49977.40
50249.58
13615.54
11223.13
9356.86
7161.91
6718.02

Jun-21
C
53371.81
53534.04
16212.72
13888.18
12076.75
9768.34
9588.82

* C - Consolidated, S - Standalone