STUDY OF FUNDAMENTAL ANALYSIS OF TATA STEEL AND

JSW STEEL

A PROJECT SUBMITTED TO

NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES

DEGREE IN MASTER OF BUSINESS ADMINISTRATION

IN
BUSINESS MANAGEMENT

SUBMITTED BY

Ms. Anam Zariwala

Student Number : 77121858081

 ACKNOWLEDGEMENT

I take this opportunity to thank the UNIVERSITY OF NMIMS for giving me

chance to do this project.

I would also like to thank Prof. Deepak Gupta, for his moral support and
guidance.

Lastly, I would like to thank each and every person who has helped me directly or
indirectly in the completion of the project, specifically My Parents and Peers who
supported me throughout my project.
 INDEX

CHAPTER PAGE
PARTICULARS
NO. NO.
EXECUTIVE SUMMARY 1

1. CHAPTER 1: INTRODUCTION 2 – 44
1.1 EXPLICATION OF STOCK MARKET 2-3
1.2 HISTORY OF STOCK MARKET 3-7
1.3 MODERNISTIC STOCK MARKET 7-9
1.4 KEY STOCK MARKET BREAKDOWNS 9-10
1.5 FUNCTIONS OF STOCK MARKET 10-12
1.6 BSE (BOMBAY STOCK EXCHANGE) 12-17
1.7 NSE(NATIONAL STOCK EXCHANGE) 17-20
1.8 PURPOSE OF STOCK MARKET 20
1.9 STOCK MARKET INDEX 22
1.10 TATA STEEL 23-38
1.11 JSW STEEL 39-45
1.12 COMPARISION OF TATA STEEL AND JSW STEEL 45-44
2. CHAPTER 2: RESEARCH AND METHODOLOGY 44 - 49
2.1 INTRODUCTION 44-45
2.2 OBJECTIVES 45
2.3 SOURCES OF DATA 45-46
2.4 SCOPE OF RESEARCH 46
2.5 LIMITATION OF THE STUDY 46-47
3. CHAPTER 3 : LITERATURE REVIEW 47 - 53
CHAPTER 4: DATA ANALYSIS, INTERPRETATION
4. 54 – 77
AND PRESENTATION
5. CHAPTER 5: FINDINGS 78
6. CHAPTER 6: SUGGESTION 79
7. CHAPTER 7: CONCLUSION 80
8. CHAPTER 8: BIBLIOGRAPHY 81
 EXECUTIVE SUMMARY

A fundamental component of investing is fundamental analysis. Fundamental

analysis is the investigation of the fundamental factors influencing the health of
the economy, business sectors, and individual organisations. Fundamental analysis
at the corporate level could entail looking at financial information, management,
business model, and competitiveness.

The stock market provides a venue for investors to acquire and sell ownership of
such investible assets. Stocks, also known as equities, represent a portion of
ownership in a corporation.

Investors profit as a outcome of corporations using that money to invest in

developing and expanding their strategies as the value of their stock increases over
time, resulting in capital gains. By switching their funds for shares over the stock
market, investors gain.

With cutting-edge technology, the Indian steel industry is quite modern. Steel is
essential for speeding a country's development and progress. As a result, it is
regarded as the foundation of human civilization. It is utilised as a fundamental
material in the production of metal goods, electrical, machinery, transport
equipment, textiles, etc. It is a byproduct of a sizable, technologically advanced
sector with substantial material flow and economic backward and forward ties.

1
 CHAPTER 1: INTRODUCTION

STOCK MARKET

“The Stock market really isn’t a gamble, as long as you pick good companies that you
think will do well, and not just because of the stock price”

Peter Lynch

1.1 EXPLICATION OF STOCK MARKET.

MEANING:-

Securities and ownership holdings in organisations and corporations are

purchased, sold, traded, and issued on the stock market.

The phrase "stock market" refers to open markets where stocks can be issued,
bought, and sold for cash or for other securities that trade over-the-counter or on
a stock exchange.. The stock market provides a venue for investors to acquire and
sell ownership of such investible assets. Stocks, also known as equities, represent
a portion of ownership in a corporation. A healthy stock market is considered
crucial for economic expansion because it enables enterprises to quickly access
public funds.

Investors profit by trading their cash in exchange of the shares on stock market.
Investors profit when the value of their shares of stock increases as corporations
use that money to build and expand their operations. time, leading to capital gains.
In addition, companies pay dividends to their shareholders as their profit grow.
One of the most dependable methods to increase your money is through the
success of the individual stock market, which historically has provided investors
with average annual returns of roughly 10%. Stock exchange and stock market are
not the same. Consider a stock exchange as a component of the stock market as a
whole. The stock market is made up of several stock exchanges, including the
Shanghai Stock Exchange, National Stock Exchange, National Association of
Securities Dealers Automated Quotations, and Bombay Stock Exchange (BSE).

2
When individuals discuss the stock market's performance, they are referring to the
hundreds of publicly traded firms that are listed on various stock exchanges.

1.2 HISTORY OF STOCK MARKET

One of the most crucial aspects of the current global economy is the stock market.
Stock markets are essential to the economic success of nations all over the world.
However, things were different in the past.

Antwerp's stock market has existed since the middle of the fifteenth century. But
there were many early instances of marketplaces that resembled stock markets.

For instance, France had a system whereby courtiers de change handled

agricultural loans across the nation on behalf of banks in the 1100s. The guys
essentially swapped debts, making it the first significant example of brokerage.
Later, it was claimed that Venetian traders had begun dealing in government assets
as early as the 13th century. Bankers in the neighbouring Italian towns of Pisa,
Verona, Genoa, and Florence soon followed suit and started trading government
securities. Most people agree that the trading of shares in the East India Company
in London marked the beginning of modern stock trading.

ORIGINATION OF INVESTMENT MERCHANDISE

In the period of around 1600s, British, French and Dutch governments provided
sanction to a various enterprises which included East India. All the goods which
are imported are transported through the sea route and this voyage included so
much threat such as the weather conditions of rain and storms or the other
unforeseen events such as attack of the pirates. To avoid the involvement of the
huge risks, ship owners regularly sought out investors to proffer financing
collateral for a voyage. In reimburse, investors obtained a portion of monetary
returns realized if the ship made it back successfully, loaded with goods for sale.
As a result, a unique corporation was formed called “Governor and Company of
Merchants of London trading with the East Indies”. These are the earliest

3
Examples of limited liability organisations (LLCs), many of which only lasted for
a single trip.

Investors came to the conclusion that taking a "gamble on a sole stake" was not a
wise strategy given the 33% likelihood that their assets in the East Indies would
be taken by pirates. Investors may buy shares in several businesses rather than risk
losing all of their money on a single venture. The investor would still be profitable
even if one ship out of three or four funded businesses was lost. The strategy
worked as expected. Similar charters had been issued to more enterprises in
Belgium, the Netherlands, France, and England within a decade.

TRADE IN STOCKS IN CAFÉ HOUSE

Before investors yelled across trade floors and threw order forms into the air, they
conduct business in coffee shops. Early stocks were handwritten on sheet of paper,
and investors traded these stocks with other investors in coffee shops. In other
words, because investors would go to coffee shops to purchase and sell stocks,
these places were the first true stock markets. A specialised market area where
businesses could trade stocks without needing to place a coffee order or shout
across a busy café soon became apparent as a way to make the entire corporate
world more efficient.

THE OLDEST SHARE

Company shares were initially issued on paper, allowing investors to swap them
with other investors, but until the establishment of the London Stock swap (LSE)
in 1773, there were no authorised exchanges. Although there was a great chance
of financial instability after the LSE was first established, exchange trade in
general managed to persist and expand during the 1800s. The Verenigde
Oostindische Compagnie or Dutch East India Company was the world’s first
company whose share was actively traded. The Dutch East India Company charter
of March 1602 stated that the company would issue registered shares. Its shares

4
was released on the Amsterdam Stock Exchange and bonds were issued to
investors and each investor was entitled to a fixed percentage of East India
Company’s Profit. Subsequently, the introduction to the capital subscription ledger
of August 1602 explained the procedure for transferring the ownership of share.
When two share traders had struck a deal, the buyer and a seller had to appear
together before the company bookkeeper, and 2 directors had to approve the
transfer before it became official.

EXCAVATION OF OLDEST SHARE CERTICIATE

The VOC (Verenigde Oostindische Compagnie) or Dutch East India Company

chamber of Enkhuizen (Netherlands) on 8th September, 1606 and made out to the
Enkhuizen inhabitant ‘Pieter Harmensz’. The certificated was accidentally
unearthed by Ruben Schalk, a history student from Utrecht University, in 2010
when he was finding for his master’s thesis. The date printed on the certificate is
the last date on which Mr. Pieter Harmensz pait his last installment of his 150
guilders investment in VOC aka Dutch East India Company. The certificate is
currently kept in the Enkhuizen (Netherlands) city. The Enkhuzien ‘share’ is
almost three weeks older than the past record, dated 27th September, 1606, in the
possession of a group of German investors (October 2010).

5
AN ACCOUNT FOR EACH STOCKHOLDER

Every stockholder had a separate account in the enormous ledger that the
bookkeeper maintained. A shareholder's account would be debited by the price of
the share sold. Additionally, the account was credited if he or she purchased a
share. This technique is analogous to how banks presently keep account holders'
statements on file. Because the VOC did not issue the bearer shares, these
formalities were required. Owners of shares in the corporation did not have any
written documentation of their ownership. However, when they paid the final
installment of their membership, subscribers to the company's IPO in 1602
received a receipt.

6
1.3 PATH TO THE MODERNISTIC STOCK MARKET

Today, nearly all nations across the globe have their individual stock exchange.
Major stock markets generally began to grow in the developed world in the 19th
and 20th centuries, not long after the London Stock Exchange and New York Stock
Exchange were established. The world's main economic powers, starting from
Switzerland till Japan, have greatly developed stock markets that are still
prosperous today.

For instance, Canada established its first stock market in 1861. By market
capitalization, that stock exchange is the biggest in Canada and the third largest in
North America. It comprises companies with locations both domestically and
abroad. One key factor in the TSX's large market valuation is that it hosts more oil
and gas businesses than any other stock exchange in the world.

Even nations ravaged by conflict, like Iraq, have their own stock exchanges.
Although there aren't many publicly traded firms on the Iraq Stock Exchange, it is

7
open to foreign investors. Additionally, it was one of the few stock markets that
was unscathed by the 2008 financial crisis. There are financial markets all over the
world, and there is no doubting the significance of stock markets on a worldwide
scale. The global stock markets, which move trillions of dollars daily, are the
lifeblood of the capitalist system.

The New York Stock Exchange faced its first real rival in the 1970s after
dominating the global economy for almost three decades. The NASDAQ stock
exchange was founded in 1971 by the National Association of Securities Dealers
and the Financial Industry Regulatory Authority.

NASDAQ is structured differently from conventional stock exchanges and has

always been. For instance, NASDAQ is wholly housed on a network of computers,
and all trades are carried out electronically, as opposed to having a physical
presence. The NASDAQ had several significant advantages over its rivals because
to electronic trading. They were the first one to decrease the bid-ask spread.
Competition between the NASDAQ and the NYSE throughout the years has
propelled both exchanges' innovation and growth. For instance, the NYSE and
Euronext joined in 2007 to become NYSE Euronext, the world's first transatlantic
stock exchange.

8
1.4 KEY STOCK MARKET BREAKDOWNS THROUGHOUT HISTORY

Any market where public perceptions are a factor will always result in stock
market collapses.

At some time in history, crashes have happened on the majority of the major stock
markets. Speculative economic bubbles naturally come before stock market
collapses. When speculations are pushed far beyond a stock's true worth, a stock
market crash may result.

Numerous significant collapses have occurred throughout history, such as the Terrible
or Black Thursday of 1929, which was followed by Black Monday and Black Tuesday.
The Dow Jones Industrial Average lost half of its value during this crash, plunging most
of the world and America into a severe economic downturn and wiping off billions of
dollars.

9
Other major stock market crashes include:

• Stock Market Crash of 1973-1974

• Black Monday of 1987
• Dot-com Bubble of 2000
• Stock Market Crash of 2008

Even while none of these disasters came close to 1929 in severity, they all resulted
in double digit percentage losses globally. The development of computerised
trading has led many to doubt the tenets of the stock market, including the
efficient-market hypothesis, the notion of rational human behaviour, and the
theory of market equilibrium.
The 1987 stock market crash was the first significant fall of the electronic trading
age, and it was remarkable because no one really anticipated it. It wasn't preceded
by significant news or international events. Instead, it appeared to have happened
suddenly and for no discernible cause. In Hong Kong, whose stock markets
dropped 45.5% between October 19 and October 31, the 1987 crisis had its start.
Major stock markets all across the world saw double-digit declines by the end of
October. For instance, markets in Australia fell by 42%, while losses in the US and
Canada were roughly 23% each.

1.5 FUNCTIONS OF STOCK MARKET:-

1. ECONOMIC BAROMETER:
The stock market aids in gauging the nation's economic health. Share prices
move in response to every important shift in the nation's economic
economy. Price fluctuations reveal a recessionary cycle whereas price
increases signal a boom.

2. VALUING OF SECURITIES:
The stock exchange assists in valuing the shares based on the relationship
between supply and demand in the market. Profitable businesses with a
growth-oriented strategy frequently issue securities that are more valuable
than those of other businesses. When securities are priced correctly,

10
 investors can: creditors and government organization to perform their
respective functions.

3. SAFETY TRANSACTION :
The businesses that are listed on the stock exchange are closely governed.
The regulatory body's legislative framework for listing must be followed
by them. It thus guarantees transactional security. The trading of securities
in India is governed by SEBI.

4. RAISING CAPITAL:
The primary purpose of industries is to raise cash. Companies can generate
money to finance their operations and projects by raising the price of their
securities. This promotes the expansion of domestic businesses

5. MAINTANING LIUIDITY
Maintaining liquidity is one of the stock exchange's key duties. A better
chance of turning securities into cash exists since they may be bought and
sold on an exchange with ease. Investors may maintain their confidence in
stock market trading thanks to this feature.

6. DIRECT LINK BETWEEN SAVING AND INVESTMENT

The stock market introduces investors to enticing investment possibilities
and alternatives across a broad spectrum of financial instruments. With this
scope, investors are encouraged to save more money and invest in
corporate sector securities to generate greater returns as opposed to making
a single fixed investment in gold, silver, other precious metals, etc.

7. PROVIDES SCOPE FOR SPECULATION

Spite is the practise of purchasing stocks with the express intent of profiting
when the price reaches a certain level. The stock exchange also serves the
purpose of giving room for controlled and restrained speculation within the
bounds of the law. The stake exchange assures the supply, demand, and
liquidity of assets via responsible speculation.

11
 8. ATTRACTING FOREIGN INVESTMENT
The stock exchange's ability to draw in capital from overseas firms is one
of its key roles. This increases the capital inflow into the domestic market,
which in turn increases the possibility to earn more.

1.6 BOMBAY STOCK EXCHANGE (BSE)

It was established in 1875 by cotton trader PREMCHAND ROYCHAND. It is

Asia's and India's oldest stock exchange. The organization's original name was
"The Native share & stock brokers' Association." The exchange now offers a wide
range of trading choices for mutual funds, debt instruments, derivatives, stock, and
cash. It also provides a variety of trading services, including as clearing,
settlement, risk management, and investor education.

The BSE was the first listed Indian stock exchange in 2017. BSE's overall market
value as of January 2022 exceeded INR 276.713 lakh crore. Indian Clearing
Corporation Limited, India International Exchange IFSC Limited, BSE Institute,
Central Depository Services, BSE Technologies Pvt Ltd., BSE Administration &
Supervision Ltd., and other well-known businesses are among those managed by
the BSE Group. A different organisation that facilitates equities trading for the
SME sector is the BSE SME.

12
The Bombay Stock Exchange supports speedy liquidity for investors by making it
simple to sell and buy equities. Stock traders may monitor the market values of
the stocks of reputable Indian firms using the BSE's main index, SENSEX.
Investors may make informed decisions thanks to the data supplied by the Bombay
Stock Exchange Live.S&P BSE Auto, S&P BSE Fast Moving Consumer Goods,
S&P BSE Bankex , etc. are further significant BSE indexes.

MOST ACTIVE STOCKS ON BSE BY TRADING VOLUMES

COMPANY NAME PRICE (₹) TOTAL VOLUME CHANGE (%)

Shukra Pharm. PP 27 14736 -1.4 (-5.0%)

Southern Latex 17 21098 0.8(5.0%)

Fortis Malar 48 3961 -0.8 (-1.6%)

Supra Trends 20 1572 -1.1 (-5.0%)
Galada Finance 9 1497 0.4 (5.0%)
Source: 5paisa.com/bse (data as of
01.04.2023)

TOP 8 COMPANIES ON BSE BY MARKET CAPITALISAION (AS OF

01.04.2023)

13
 ₹ MARKET 52 WEEK
COMPANY NAME PRICE ₹ MARKET CAP HIGH
RELIANCE 2331.1 1577093 2855
INDUSTRIES
TATA CONSULTANCY
3205.8 1173019 3836
SERVICES LTD
HDFC BANK LTD 1609.8 898199 1722
ICICI BANK LTD 877.2 612533 958
HINDUSTAN UNILEVER
2558.8 601202 2741
LTD
INFOSYS LTD 1427.7 592290 1913
HDFC LTD 2628.7 482002 2855
ITC LTD 383.5 476552 394
Source: 5paisa.com

OBJECTIVES

1) To provide an transparent and effective and market for trading in Equity,

derivatives , debt instruments and mutual funds.
2) To provide a exchange platform for equities of small and medium
enterprises
3) To ensure active trading and safeguard market reliability through an
electronically- driven exchange market.
4) To provide extra other services to capital market participants like risk
management, settlement, clearing , market data and education.
5) To adapt to international standards

HISTORY OF BOMBAY STOCK EXCHANGE

Asia's oldest stock market is the Bombay Stock market, or BSE for short. It was
established on July 9th, 1875. BSE has trading rates of an astounding 6 seconds,
making it the quickest stock exchange in the world. Premchand Roychand, a well-
known Jain merchant and cotton dealer who founded the Native Share and Stock
Brokers, is thought to have provided the groundwork for the BSE. Mid-19th-

14
century gathering under a banyan tree close to Mumbai Town Hall. To submit bids
and receive business stocks, all dealers gathered close to the banyan tree. Contrary
to modern day commerce, back then everything was done on paper. The authorities
gradually became aware of the necessity to create an institution to manage the
money and shares in an orderly manner as the market's size and volume began to
increase. The Bombay Stock Exchange (BSE) was founded as a result in 1875.
BSE was housed at a structure next to the Mumbai Town Hall from 1875 and 1928.
The exchange purchased a property close to Horniman Circle in 1928. The new
BSE building opened for business in 1930 after a two-year construction period.
The road was given the new name Dalal Street in recognition of BSE and its
efforts. Hindi for "broker" is "dalal."

Under the Securities Contracts Regulations Act, the Indian government recognised
the BSE in 1957. The S&P BSE SENSEX index, a well-known index for the BSE,
was created in 1986 to provide insight into the overall performance of the market.
Additionally, the BSE's derivatives division was established in 2000 and provides
investors with access to futures contracts for the S&P BSE SENSEX index. By
2002, the options market had also been established, substantially extending the
BSE's influence. BSE used an open outcry approach for floor trading, much like
all other traditional stock exchanges of the time. But in 1995, they made the move
to an electronic trading system. The CMC Ltd. company created the computerised
trading platform. The speed with which the exchange enabled the switch from
offline to online astounded everyone.

In reality, the transition from floor trading to internet trading only took fifty (50)
days. The acronym BOLT, which stands for BSE On-Line Trading, was given to
the screen-based, online trading platform. It may make eight million orders per
day possible. The United Nations Sustainable Stock Exchange programme now
counts the BSE as a partner exchange.

In September 2012, it joined the organisation. On December 30, 2016, BSE also
established the India INX, the country's first foreign stock exchange.

15
One of the biggest stock exchanges in the world, BSE allows trading in more than
5,000 firms. The New York Stock Exchange (NYSE), the London Stock Exchange
(LSE), the National Association of Securities Dealers Automated Quotations
(NASDAQ), the Shanghai Stock Exchange (SSE), and also the Japan Exchange
Group are among the other noteworthy stock exchanges in the globe.

THE STAKEHOLDERS OF BSE

PERCENTAGE
STOCKHOLDER
%
MUTUAL FUNDS 4.41 %

BANK AND FINANCIAL INSTITUTIONS 0.17 %

INSURANCE COMPANIES 0.83 %

FOREIGN INSTITUTIONAL INVESTORS 10.57 %

FDI 8.36 %

ALTERNATE INVESTMENT FUNDS 0.19 %

INDIAN NON – INSTITUTIONAL CORPORATE 6.70 %

BODIES
RETAIL INVESTORS 26.01 %

HUFs , NRI and CM POOL POSITION 7.07 %

TRADING MEMBERS AND ASSOCIATES OF

TRADING 32.44 %
MEMBERS
Source: 5paisa.com
THE TOP SHAREHOLDER OF BSE

• Deutsche Boerse AG
• MSPL ltd
• Siddharth Balachandran
• IDFC mutual fund
• Acacia Banyan Partners ltd
• National Westminster Bank PLC as trustee of the Jupiter India Fund

16
 • Caldwell India Holdings INC
• Life insurance corporation of India
• Akshay Vasantlal Mehta
• ICICI Prudential Mutual Fund
• S Gopalakrishnan

• State Bank of India

• GKFF ventures

NUMBER OF COMPANIES LISTED IN BSE

As of the 8th of February 2022, there are 5,246 businesses listed on the Bombay
Stock Exchange. The market value of the equities listed on the BSE for all of India
is INR 26,451,334.95 billion. The market capitalisation of the top ten corporations
is INR 7,319,611.40 billion. In the financial year 2020–21, the total equity
turnover of BSE stocks was INR 10,45,089.56 crore in 249 trading days, a
significant increase from INR 6,60,896.03 crore in 247 days in the previous year.
The BSE has more than 250 registered stockbrokers. These include Trade Cum
Self Clearing Member (SCM), Professional Clearing Member (PCM), Limited
Trading Member (LTM), Trading Cum Clearing Members (TCM), and Trading
Member (TM). To view the most recent list of brokers connected to the BSE, click
to this page.

1.7 NATIONAL STOCK EXCHANGE (NSE)

Global trade activity in the investment sector has increased exponentially over
time. India has a sizable economy and has responded to changes in the economy
actively. The nation required a well-structured system that easily catered to the
needs of the share issuers and purchasers since numerous businesses were going
public. To accomplish this, the National Stock Exchange of India was founded.
The exchange, which was founded by a number of Indian and international
financial organisations, provides a dedicated site for a secure, open, and simple

17
trading environment stock trading experience. One of the top stock exchanges in
India is called NSE, or National Stock Exchange, and it is situated in Mumbai. In
terms of the volume of equity share trading, it is the biggest stock exchange in
India and the second largest internationally. As the first demutualized electronic
exchange, NSE was founded in 1992. Leading institutions founded NSE to offer a
state-of-the-art, completely automated screen-based trading system. In 1994, it
began conducting business in the wholesale debt market. The benchmark indexes
for the NSE are Nifty and Bank Nifty. Investors in India and throughout the world
frequently use the NIFTY 50, the 50 stock index, which is the NSE's flagship
index, as a gauge of the Indian financial markets. The market capitalisation of the
National Stock Exchange as a whole is greater than.

HISTORY OF NATIONAL STOCK EXCHANGE (NSE)

The Indian government, under the Ministry of Finance division, decided to

establish the NSE with the aim of providing simple access to the market for traders
and investors from across the country to ensure participation after the infamous
scam of 1992, in which the Indian stock market was manipulated by a famous
investor.

NSE was formed as a tax-paying corporation in the year 1992. State Bank of India,
Life Insurance Corporation of India, IDFC Limited, IFCI Limited, and Stock
Holding Corporation of India were the investors in the incorporation. The

18
 Securities Contract Act of 1956 designated the firm as a stock exchange in April
1993. In June 1994, the exchange initially began functioning in the Wholesale
Debt Market (WDM). The exchange began operating in the stock section in
November 1994. Segments for derivatives went operational in June 2000.

The National Stock Exchange offers trading, clearing, and settlement services in
the debt, currency, stock, and equity derivatives divisions. According to reports,
NSE has a nationwide network made up of more than 3000 leased lines and 2500
VSATs. The first electronic security depository of India, NSDL, was made
possible in part because to NSE. In order to create a contemporary infrastructure
that met worldwide requirements, the National Securities Depository Limited, or
NSDL, was established in August 1996.

OBJECTIVES:-

• To create an all- encompassing national trading ability for securities.

• To offer impartial access to the stock market to Indian investors
• To establish visible, effective and fair market for share trading.
• To enable book- entry settlements and faster NSE stock settlement cycles.
• To encounter trading standards repaired by global financial organizations.

MOST ACTIVE STOCKS ON NSE BY TRADING VOLUMES AS OF (01.04.2023)

COMPANY NAME PRICE ₹ TOTAL VOLUME CHANGE

NESTLE INDIA 19705 148444 651.5 (3.4 %)

APOLLO HOSPITALS 4311 465663 -52.1 (-1.2%)
ASIAN PAINTS 2762 1967803 -8.8 (-0.3%)
BPCL 344 5068755 4.4(1.3%)
RELIANCE INDUSTRIES 2331 13001005 96.4 (4.3%)
Sources: 5paisa.com

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MAJOR SHAREHOLDERS OF NSE

NAME % HOLDING

LIC 10.72
ARANDA INVESTMENTS 5.00
STOCK HOLDING CORP 4.44
SBI CAPITAL MARKETS 4.33
VERACITY INVESTMENTS 3.93
CROWN CAPITAL 3.58
STATE BANK OF INDIA 3.23
PI OPPORTUNITIES 3.00
MS STRATEGIC 2.82
SAIF 2.54
Sources: 5paisa.com NUMBER OF COMPANIES LISTED IN NATIONAL STOCK
EXCHANGE

On the National Stock Exchange's website, as of December 31, 2022, there were
about 2,113 firms listed there. The combined market value of all the firms listed
on the NSE is about Rs. 2,75,67,268 crores. This list does not contain mutual
funds, exchange traded funds (ETFs), REITs, InVITs, shares with differential
voting rights (DVRs), or businesses that are listed on the NSE's SME platform.

1.8 PURPOSE OF STOCK MARKET

The stock market fulfils two crucial functions. The first is to give firms funds so
they can finance and grow their operations. If the price per share is $10, the firm
will have $10 million in funds at its disposal to expand, less whatever costs it may
have to pay an investment bank to handle the stock offering. The business prevents
to take any on debt and paying interest on the same debt by issuing stock shares
instead taking the money required for expansion. The stock market's secondary

20
function is to provide buyers of stocks with the chance to participate in the
earnings of firms that are traded openly. The main approach of the investor is to
gain profit form the investment made. Some companies allow shareholders to
receive a fixed dividend per share on a regular basis. Investors can also make
money from their purchasing price in other ways.

1.9 STOCK MARKET INDEX

The performance of a set of companies that represent a certain industry or market

segment, such as the technology, energy, and transportation sectors, is tracked by
a stock market index. One of these two sizable indices is frequently used as
abbreviation to indicate how the Indian stock market has performed overall.

SENSEX

The target index of the BSE in India is mentioned to as the "Sensex." The 30 largest
and most popular equities on the BSE are listed on the Sensex, which performs as
a barometer for the Indian economy. It is market capitalization-weighted and float-
adjusted. Every year, in June and December, the Sensex is evaluated twice a year.
The Standard & Poor's (S&P)-run Sensex is the oldest stock index in India, having
been established in 1986. It is used by analysts and investors to track the economic
cycles in India as well as the growth and decline of certain sectors.

The Sensex debuted on January 1st, 1986. It is used to measure the performance
of India's 30 biggest and most financially secure corporations as both a bellwether
and an investable index. These businesses, some of which represent the largest and
most significant sectors of the Indian economy, are listed on the BSE (formerly
known as the Bombay Stock Exchange).

21
Nifty 50:

In order to establish the NSE's management team's position in the dematerialized

markets industry when it was founded in Mumbai in 1992, they required a sturdy
pole to bury in the financial landscape. This was discovered in the new NIFTY 50.
These days, the benchmark index for the NSE is referenced to when someone asks
"what is NIFTY 50" or "What are NIFTY 50." The 50 stocks that make up the
NIFTY 50 index are well-known names on the Indian stock market. The
benchmark index is regarded by investors as one of the most precise litmus tests
for the Indian stock markets since it includes businesses like Asian Paints and a
variety of HDFC and Tata firms (such as Titan, for example).

22
1.10 TATA STEEL

Tata Steel Limited is a multinational Indian steel-producing business with offices

in Mumbai, Maharashtra, and Jamshedpur, Jharkhand. The TATA Group includes
TATA Steel. On August 26, 1907, Jamsetji and Dorabji Tata were the founders.

23
The current key managerial personnel are T.V. Narendran, CEO and Managing
Director of Tata Steel Ltd., Natarajan Chandrasekaran, Chairperson. Noel Tata.
TATA IRON AND STEEL COMPANY LIMITED (TISCO) is the current name of
Tata Steel. With a 34 million tonnes per year capability for making crude steel,
TATA STEEL is one among the top producers of steel in the world. With activities
and a global commercial presence, it is one of the most geographically diverse
steel producers in the world. The team's financial year ended on March 31, 2022,
with a combined revenue of US$32.83. According to IBEF (Indian Brand Equity
Finance), with an annual capacity of 34 million tonnes, it is the second largest steel
manufacturer in India.

With significant activities in India, the Netherlands, and the United Kingdom,
TATA STEEL has operations in 26 nations. In Jamshedpur, Jharkhand, is where its
main factory is located. TATA STEEL purchased the British steel manufacturer
CORUS in 2007. In the 2014 Fortune Global 500 list of the largest firms in the
world, it came in at position 486. According to Brand Finance, it was the eighth
most valuable Indian brand in 2013.

According to Great Place to Work, TATA STEEL is among India's Best Workshops
for Manufacturing in 2022. This is the fifth time that this identity has been given.
This demonstrates the company's commitment to high standards of ethics, growth,
and employee care.

24
TATA STEEL JAMSHEDPUR

PRODUCTS AND SERVICES

1. AUTOMOTIVE STEELS
Hot Rolled Product
Coated Products

Cold Rolled Product

2. GALVANO – GALVANISED PLAIN SHEETS AND COILS

Thickness: 0.45mm – 2mm
Width: 1000mm – 1520mm
Length: Full coil | Slit Coil | Cut to length (CTL) Sheets | Blanks
Grade: CQ, DQ, DDQ, EDD, IF, High Strength
Coating Mass: 60-550 GSM (total both sides)

25
3. TATA AGRICO | AGRICULTURE, CONSTRUCTION & HAND TOOLS
Agri & Construction Tools
Agri, Industrial & Hardware Consumables
Tradesmen Hand Tools

4. TATA PIPES
Amrit Dhara
HVAC
Pipes for cold storage
Pipes for fire-fighting
Idler tubes

5. TATA PRECISION TUBES

Automotive
General engineering
Boilers

6. RAW MATERIALS AND RESPONSIBILTY MINING

Iron Ore and Coal - Iron Ore mining is an integral part of steel making at Tata
Steel. The steel company's iron ore units produce various grades of high quality
iron ore including rich blue dust ore.

7. TATA SHAKTEE
Tata Shaktee Standard GC sheets.
Tata Shaktee Wide GC sheets.
Tata Shaktee Wider GC sheets.

26
 Tata Shaktee Roof Junction.

8. TATA STEELIUM
Auto-ancillary
Furniture
Panels
General Engineering
Tata Steelium Neo

9. TATA STRUCTURA
Rectangular Hollow Sections
Square Hollow Sections
Circular Hollow Sections
Galvanized Hollow Sections

10. TATA TISCON

TATA TISCON 500
TATA TISCON SD
TATA TISCON FOOTING
TATA TISCON SUPERLINKS

11. TATA WIRON

Automotive segment
Tyre Reinforcement
Spring Steel Wire
Spoke wire
Infrastructure Segment

27
 Low relaxation PC
Pre stressed concrete wires
3X3 PC
Binding
Power Segment
Cable Armour
Galvanized Wire
Fencing Segment
Barbed Wire o D-Fence Chain-link
Farming Segment
Poultry Segment

12. GALVAROS
Ducting
HVAC
Cable Tray
Appliances
General Engineering
PEB structures
Artefacts

13. COLORNOVA
Clean room panel
False ceiling
HVAC
Appliances- refrigerator, washing machine, microwave oven, air
conditioner, water cooler
Commercial refrigeration – deep freezers
Door & window frames

28
14. TATA FERRO ALLOYS AND MINERALS DIVISION
The Ferro Alloys and Minerals Division presents three brands under its roof
- Tata Tiscrome, Tata Ferromag and Tata Silcomag.
Tata Tiscrome is commonly used as an alloying agent in the production of
carbon and stainless steel since it recommends corrosion resistance and
increasing life of the stainless steel. Existing in customized sizes through a
network of accredited distributors across the country, Tata Trichrome
warrants superior quality and composition.
Tata Silcomag is India’s first branded Silico Manganese launched by Tata
Steel. The product comes with the undertaking of restricted carbon,
Sulphur and phosphorus - thus lowering the cost of refining and completing
the desired specifications.
Silcomag offers a range of advantages such as timely on-site delivery,
reliability in size and guaranteed availability through its Priority
Replenishment Service.
Tata Ferromag is a Ferro Manganese brand launched to succeed the long-
felt market need for coherent Ferro Alloy with a guarantee of perfect
composition, weight and size. It is offered in customized sizes of 10-50,
10-60, 10-150 and 50-150 mm.

15. TATA STEEL INDUSTRIAL BY-PRODUCTS MANAGEMENT DIVISION

(IBMD)
Aluminum and copper
MRP scrap
Coal tar
Coal washery products
Galvanized scrap
Ground granulated blast furnace slag (GGBS)
HR/CR scrap
Iron oxide
Lazy goods & miscellaneous items

29
 LD slag
Pooled iron
Sulphur
Zinc by-products

Granulated blast furnace slag

16. TATA BEARING

Deep Groove Ball Bearings
Carbo-nitrided Bearings
Centre Bearings
Special Purpose Ball Bearings
Double Row Angular Contact Ball Bearings
Clutch Release Bearings
Magneto Bearings
Seize-Resistant Bearings
Multipurpose Grease - NLGI Grade 3

Taper Roller Bearings

Hub Unit Bearings

17. TATA ASTRUM

Tata Astrum hot-rolled coils and sheets provide answers to a range of needs and
redefine market norms with best-in-class service offerings and product quality. We
serve clients from a variety of sectors and industries, such as the automotive,
railroad, yellow goods, agricultural, and fabrication industries.

18. GALVANOVA

Tata Steel's coating brand under which it sells aluminum-zinc alloys is called
Galvanova.

30
TIMELINE OF TATA STEEL COVERS THE BACKGROUND OF THE
INDUSTRIES

1907: Tata Iron & Steel Co Ltd established by Jamsetji Tata.

1911: Blast Furnace operation at Sachi begins.
1912: Jamsetji Tata's plant produces its first steel ingot.
1912: 8 hour day introduced to maintain employee well-being.
1920: Leave-with-pay introduced. This practice was rare pre-1940s.
1924: Tata close to closure as a result of 1920s Depression.
1951: Modernization plan launch - with Kaiser Engineering support.
1971: Government attempt to nationalize Tata Iron and Steel Company fails.
1987: Collaboration started with Timken in bearings production.
1996: JV with Inland International - creation of Tata Ryerson.
2001: Announces closure of steelmaking in Llanwern, South Wales.
2004: Acquisition of Singapore based NatSteel for ~$486m.
2004: Creation [with SAIL] of the mjunction online trading platform.
2005: Acquisition of 40% stake in Thailand's Millennium Steel.
2005: Tata Iron and Steel Company changes its name to Tata Steel.
2005: MoU signed for 5mt integrated plant at Jagdishpur. 2007: Tata Steel
wins bid for Corus against Brazil's CSN.
2007: Acquisition of controlling stake in 2 Vietnamese rolling mills.
2010: Partial mothballing begins at Tata's TCP plant at Teesside.
2011: Tata Steel's Teesside Cast Products (TCP) plant sold to SSI.
2011: Llanwern hot strip mill in the UK temporarily mothballed.
2012: Blast furnace relit at former Corus Redcar steel plant.
2012: Rebuild commences of blast furnace No 4 in Port Talbot, UK.
2012: Retirement of Ratan Tata - Cyrus Mistry is new Chairman.
2013: Tata Steel Europe reports record GBP 1.2 bn loss.
2014: Plan announced to increase capacity 60% to 16 mt by 2020.
2015: Announces closure of hot strip mill at Llanwern, South Wales.
2015: Closes Scunthorpe plate mill & Dawes Lane coke plant.

31
2015: Discusses sale of European long product business with Greybull.
2016: Announces 700 job losses at Port Talbot in South Wales.
2016: Sells UK long products business to Greybull Capital for £1.
2016: Much discussion about sale of Port Talbot steel works in Wales.
2016: British Steel pension deficit of ~GBP £700m identified.
2016: Thyssen discussions held mid-year on merger of European assets.
2016: Chairman Cyrus Mistry sacked in October - replaced by Ratan Tata.
2017: Completes sale of UK specialty steels units to Liberty House.
2017: Sells UK tube mills in Hartlepool to Liberty House Group.
2017: Tata Steel gets regulatory approval for UK pension deal.
2018: Acquires debt-ridden Bhushan Power and Steel (India).
2018: Brussels examines European merger plan with ThyssenKrupp Stahl.
2019: Abandons proposed corporate tie-up with ThyssenKrupp.
2019: Brussels blocks ThyssenKrupp and Tata Steel merger.
2019: Mothballing of Orb steel plant in Newport, UK.
2019: Supreme Court orders Mistry's reinstatement as executive chairman.
2020: Rata Tata petitions Supreme Court to reverse reinstatement order.
2020: Company prepares for fresh strikes at its Ijmuiden plant.
2020: Considers closure of Port Talbot blast furnaces.
2020: Tata Steel withdraws from membership from the Indian Steel
Association (ISA).
2021: SSAB ends Tata IJmuiden acquisition talks.
2021: Court sets aside NCLAT order restoring Mistry as executive chairman.
2021: Tata Steel along with Bhushan Steel and Tata Steel Long Products
rejoins ISA.
2021: Tata Steel is winning bidder for Gandhalpada Iron Ore Block, Odisha.
2022: Proposes to acquire 93.71% equity stake in Neelachal Ispat Nigam Ltd
(NINL).
2022: Acquires production assets of Stork Ferro and Mineral Industries.
2022: Increases ownership stake in S&T Mining to 100%.

32
 2022: Threatens to shut UK operations unless given decarbonisation state aid
of £1.5 bn.
2022: Divests 19% stake in Al Rimal Mining LLC, Oman.

SUBSIDIARIES

• Tata Steel UK
• Tata Steel Netherlands
• Tata Steel Thailand
• Tata Steel Long Products
• Tata Tinplate
• Tayo Rolls
• Jamshedpur FC

EXPANSION

ACQUSIONS

As can be seen from the chronology above, NATSTEEL agreed to be acquired by

TATA STEEL in 2004 for a price of $486.4 million in cash. Let's look more closely
at this event. NatSteel concluded 2003 with a $1.4 billion revenue and a $47
million profit before taxes. The firm would manage NatSteel's steel operations
through a fully owned subsidiary called NatSteel Asia Pte Ltd. The purchase was
finished in February 2005.

MILLENNIUM STEEL in 2005: For a total of $130 million, Tata Steel purchased
the majority of shares in the Thai steelmaker Millennium Steel. It proposed to pay
1.13 baht per share for an additional 25% of the shares of other owners and paid
Siam Cement US$73 million for a 40% stake in the company.

33
CORUS in 2006: In an agreement, Tata Steel agreed to purchase a 100% interest
in Corus for £4.3 billion ($8.1 billion) or 455 pence per share. Corus was the target
of a counter bid from the Brazilian steelmaker Companhia Siderrgica Nacional
(CSN) on November 19, 2006, valued at £4.5 billion. Tata preemptively increased
their bid on December 11 to 500 pence per share, but CSN's offer of 515 pence per
share, valued at £4.9 billion, beat it by hours.

TAYO ROLLS in 2008 - Formerly known as Tata-Yodogawa Limited, this Indian

corporation based in Jamshedpur manufactures and processes metal. As a joint
venture between Tata Steel and Yodogawa Steels, a company located in Japan, it
was established in 1968. The firm issued a rights offering in 2008, but only around
50% of its entire value, or Rs 60 crore, was subscribed. Tayo Rolls became a Tata
Steel subsidiary after the promoters purchased them as a consequence of
undersubscription.

STEEL ENGINEERING AND VINAUSTEEL in 2007: Tata Steel purchased the

majority ownership of both rolling mill businesses with a 100% share in Structure
Steel Engineering Pte Ltd and a 70% stake in Vinausteel Ltd through its fully
owned Singapore subsidiary, NatSteel Asia Pte Ltd.

BHUSHAN STEEL in 2018: When insolvency proceedings were launched against

the former company on July 26, 2017, under the IBC, Tata Steel won the bid and
acquired the entire company in 2017–18, taking control of it through its wholly
owned subsidiary Bamnipal Steel Ltd. The business was renamed Tata Steel BSL.

NILACHALA ISPAT NIGAM LTD in 2022: Tata Steel acquired a majority interest
in NINL through its wholly owned subsidiary, Tata Steel Long Products (TSLP).
For 12,100 crore (US$1.5 billion), it outbid JSW Steel and Jindal Steel to purchase
Neelachal Ispat Nigam Ltd (NINL), which is situated in Odisha.

34
JOINT VENTURE

A joint venture for the production of pre-engineered steel products, Tata

BlueScope Steel Ltd., was established in 2006 by Tata Steel and BlueScope Steel.
In order to create continuous annealed products for the automobile sector, Tata
Steel and Nippon Steel established Jamshedpur Continuous Annealing and
Processing Company Pvt Ltd (JCAPCPL) in 2014. The factory, which cost $2,750
billion to build, could produce 600,000 tonnes per year. The joint venture was 51%
owned by Tata Steel.

AMALGAMATION

In 2022, Tata group turned for the amalgamation of seven metal companies of the
group into Tata Steel. Seven metal companies of Tata group that will be merged
with Tata Steel are Tata Steel Long Products Limited (TSLP), The Tinplate
Company of India Limited (TCIL), TRF Limited, Tata Steel Mining Limited
(TSML) The Indian Steel & Wire Products Limited (ISWPL),and S & T Mining
Company Limited, Tata Metaliks Limited (TML).

35
AWARDS AND RECOGNITION

SUSTAINABILITY AND ENVIRONMENT

Tata Steel Limited is involved in the S&P Global Sustainability Yearbook

2022 recognized for directing the world’s biggest sustainability challenges
based on Corporate Sustainability Assessment (CSA) survey conducted by
S&P Global.
Tata Steel Limited and Tata Steel Europe recognized by world steel among
2022 Steel Sustainability Champions, for the fifth year in a row.
Tata Steel has being recognized in the Top 25 Innovative Indian Companies
in 2020.
CII awarded Tata Steel with the Environmental Best Practices Award 2020.
Brand Finance Annual Report recognized Tata Steel as India’s Most
Valuable Metals & Mining Brand in ‘India 100 2020’.
Tata Steel & CSIR-CRRI won the SKOCH GOLD Award 2021 for
Utilization of Basic Oxygen Furnace Steel Slag in Road Construction.
National Sustainability Award by Indian Institute of Metals (IIM) which
was for Large Integrated Steel Plants category for the 3rd consecutive year.
Rated ‘A-’ (Leadership band) on the basis of Climate Change disclosure in
2020.

HEALTH AND SAFETY

Tata Steel was bestowed the Safety & Healthy Excellence Recognition
2020 for Digitalization of Process Safety Performance Indicators (PSPI)
driving better business results by worldsteel
Safety and Health Excellence Recognition 2018 which was given by World
Steel Association
Bhelatand Colliery of Tata Steel conferred with FIMI award which was for
Health & Safety.

36
 Tata Steel Noamundi Iron Mine had received the Safety, Health &
Environment (SHE) Excellence Award 2017-18 from CII.
Tata Steel’s Ore Mines & Quarries division honored with CII Safety, Health
& Environment award for 2018-19.

OPERATIONAL EXCELLENCE

Tata Steel has being established as an Advanced 4th Industrial Revolution

Lighthouse in World Economic Forum.
Environmental Manufacturing Award at Make in India Awards 2016.
IEI Industry Excellence Award 2016 in the classification “Manufacturing
& Processing’.
1st prize in Integrated Steel Sector which was at National Energy
Conservation Award 2016.

CSR (CORPORATE SOCIAL RESPONSIBILITY)

FICCI awarded Tata Steel as the best organization for contributing in sports
through CSR.
Tata Steel honored at National CSR Awards for its work on maternal and
child health.
UN GCNI's 'Innovative Practices Award 2018' conferred on Tata Steel.
Tata Steel has been conferred for the prestigious Dun & Bradstreet
Corporate Award 2019 for the fifth consecutive year in the classification of
‘Corporate Social Responsibility (CSR).

HR

Tata Steel recognized for the fifth time among India’s Best Workplaces in
Manufacturing for 2022 by Great Place to Work.

37
 Tata Steel has been recognized as one of ‘India’s Best Employers among
Nation-Builders 2021’.
Tata Steel has being recognized as a Great Place to Work for the 4th time.

ETHICS

Tata Steel had been labelled as one of the 2020 World's Most Ethical
Companies by Ethisphere (Awarded nine times).
World’s Most Ethical Companies Award 2018.

SPORTS

TATA STEEL has historically contributed significantly to the growth of sports in

India. The TATA Football Academy, TSAF Climbing Academy, TATA Archery
Academy, Naval TATA Hockey Academy - Jamshedpur, and Odisha Naval TATA
Hockey High Performance Centre were also founded with their assistance.

38
1.11 JSW STEEL

One of the JSW Group's flagship companies is JSW (Jindal South West) Steel.
The Jindal Group bought Piramal Steel Limited, which ran a small steel factory at
Tarapur in Maharashtra, and renamed it Jindal Iron and Steel Company (JISCO),
giving JSW Steel its beginnings in 1982. The firm quickly built its first steel mill
in 1982 in Vasind, close to Mumbai. The business is a top integrated steel producer.
It is currently one of India's fastest-growing businesses and is present in more than
100 nations. JSW is also the first business to produce high-performance, cutting-
edge steel products for the automobile industry.

The founding father is Sajjan Jindal in the year 1982. The significant people are
Sheshagiri Rao MVS, Jayant Acharya. Parent group is JSW group.

TIMELINE SHOWING CHRONICLE OF INDUSTRY

1982: Jindal Group sets up steel plant at Vasind near Mumbai.

1982: Acquires Piramal Steel Limited (later renamed JISCO).
1994: Sets up Jindal Vijayanagar Steel Ltd (JVSL).
2004: JSW acquires Salem Steel Works.
2005: JISCO and JVSL merge to form JSW Steel Ltd.
2008: JSW Steel enters rebar JV in Georgia.
2010: Acquires integrated steel plant at Dolvi, Maharashtra.
2013: Ties up with Japan's JFE in electrical steel JV.

39
 2014: Acquires Welspun Maxsteel in deal valued at ~1,000 Crores.
2018: Buys 100% stake in Italy's Aferpi for Euro 55 million.
2018: Signs JV agreement with JFE for Indian auto steel production.
2018: Invests $150m in first tranche for Greenfield Texas plant.
2019: NCLT approves JSW's takeover of bankrupt Bhushan Power.
2019: Announces sale of significant stake in Geo Steel.
2020: Emerges as preferred bidder for three iron ore mines in Odisha.
2020: NCLAT grants JSW immunity in acquisition of Bhushan Power.
2020: JSW purchase of Bhushan Power challenged in India's top court.
2020: Agrees to buy remaining 26.45% stake of JSW Vallabh Tinplate.
2020: Purchases remaining 31% stake in Italy's GSI Lucchini.
2021: Completes purchase of Bhushan Power & Steel Ltd.
2021: JSW Steel Italy acquires 31% stake in GSI Lucchini.
2021: Sets CO2 target of 1.95 tons per ton by Fiscal 2030.
2022: Puts Piombino long product business in Italy up for sale.
2022: Announces plan to merge JISPL and CSSL subsidiaries.
2022: Gets approval to construct Greenfield steel plant in Andhra Pradesh.
2023: Ponders new investment in an electric vehicle production plant in
India.
2023: Becomes a member of Responsible Steel.
2023: JSW is approved as the preferred buyer of three coal mines in India.

SUBSIDIARIES

• Amba River Coke

• Asian Colour Coated Ispat Limited
• Bhushan Power & Steel
• Hasuad Steel
• JSW Ispat Steel
• JSW Bengal Steel

40
 • JSW Energy (Bengal)
• JSW Industrial Gases
• JSW Jharkhand Steel
• JSW Natural Resources Bengal
• JSW Utkal Steel
• Welspun Maxsteel Ltd

PRODUCTS AND SERVICES

PRODUCTS

Cold Rolled Chase Annealed

Hot Rolled Pickled & Oiled
Hot Rolled Black
Electrical Steel
Galvanized Steel
Color Coated Steel (PPGI/PPGL)
Stainless Steel

SERVICES

SLITTING - Slitting is a metal manufacturing process that helps to cut a

wide coil of metal into a many of narrower coils.
CUT TO LENGTH - Cut-to-Length is a process in which steel coils are
uncoiled and fed through a shear blade for cutting into required lengths
with precise tolerances.
PACKING- To guarantee that our quality of packing finished goods is not
negotiated, we customize it as per the supplies of the customers. We at JSW
MI have also integrated the re-usable sectional steel pallets in sheet
packaging to foster our belief of “Go Green and Save a Tree”.

41
MERGERS AND ACQUSITIONS

• In 2007, JSW Steel creäte a joint venture which was for a steel plant in
Georgia. Any by 2020, it sold of 39 percent stake which it took in JV to
Georgian Steel Group Holdings Limited.
• In 2009, Japan's JFE Steel Corp, entered into a strategic partnership with
JSW Steel to produce automotive steel products.
• In 2010, JSW Steel acquired 3 MTPA Hot Rolling Plant in Dolvi,
Maharashtra (formerly Ispat Industries Limited).
• In 2012, JSW Ispat Steel was merged with JSW Steel, 20 months after the
latter acquired a controlling stake in Ispat Industries.
• In 2014, it acquired Welspun Maxsteel Limited in a trade valued at
approximately INR 1,000 Crores.
• In 2019, JSW Steel obtained Bhushan Power & Steel. This resulted in the
absorption of an integrated steel facility in Jharsuguda, with a capacity of
2.5 million tonnes annually.
• In April 2021, the company acquired Plate and Coil Mill Division (PCMD)
of Welspun Corp for a sum of ₹848.5 cr.
• In October 2021, JSW Steel acquired 51% stake in Neotrex Steel from JSW
Group promoters and entered into an under-construction project to
manufacture Low Relaxation Prestressed Concrete (LRPC).
• In October 2022, JSW Steel instructed a process to purchase Central-India
based National Steel & Agro (NSAIL) through determination plan
presented under the corporate insolvency decree process. The company
makes flat steel products such as cold-rolled coil, galvanized corrugated
sheets, color coil and pre-painted profile sheets and owes lenders over Rs
1,600 crore.
• In January 2023, JSW Steel registered into an agreement via one of its
subsidiary to purchase 31 percent stake in startup Ayena Innovation which
treaties in interior decoration sector and home furnishings.

42
MINING ACQISITIONS

In the past, JSW Steel has furthermore acquired mining assets in the United States,
the Republic of Chile and Mozambique.

AWARDS AND RECOGNITION

• Creating better tomorrow - 2016

• Establishing award winning technology
• Making a global impact
• Leading the way - 2015
• Finding Success in Sustainability - 2014
• Achieving greater heights - 2014
• Creating a world- class environment 2012-13
• Receiving adulation fir excellence - 2013
• Developing and delivering Value - 2013 - 14

1.12 COMPARISION OF TATA STEEL AND JSW STEEL

TATA STEEL JSW STEEL

• Hot rolled
• Cold rolled
• Hot rolled
• Colour coated products
• Cold rolled
• Galvanised
• Coated coil
PRODUCTS • Galvalume
• Tubes
• TMT rods
• Rebar
• Wire rods
• Wire rods
• Special alloy steel
• Avante steel doors

43
 • Agriculture
• Automotive
• Construction • Automotive
• Consumer goods • General Engineering
KEY SEGMENTS
• Energy and • Machinery
Power Engineering • Projects and construction
• Material
Handling

• Captive iron ore and

coking coal mines • Largest steel exporter in
• Low cost of India
manufacturing • Captive iron ore
COMPETITIVE
• Diversified global • High share of value added
ADVANTAGE presence products in revenue
• Expanding to • Geographical advantage
adjacent businesses • Low cost capex execution
beyond steel

• Raw material pricing

risks • Raw material pricing risks
KEY RISKS
• Cyclicality of steel • Cyclicality of steel industry
industry

CHAPTER 2: RESEARCH METHODOLOGY

2.1 INTRODUCTION

A security's intrinsic value is calculated using fundamental analysis (FA), which

looks at relevant economic and financial elements. An investment's intrinsic value
is determined by the financial health of the issuing firm, as well as the general
market and economic climate.

Fundamental analysts examine everything that has the potential to impact a

security's value, from microeconomic elements like the efficiency of the
company's management to macroeconomic ones like the status of the economy
and industry circumstances.

44
The ultimate objective is to arrive at a figure that an investor may use to gauge whether
an asset is being undervalued or overvalued by other investors by contrasting it with its
present price.

The process of doing a fundamental analysis is done with a number of goals in mind.

However, the objective is to identify the best market investment opportunity.

2.2 OBJECTIVES

1. To do fundamental analysis of selected Steel Company

2. To make selling and buying decision

3. To quantify the intrinsic value of share

4. To identify which investment option is better TATA STEEL OR JSW STEEL

5. To analysis the companies financial strength.

6. To understand how ratio work.

7. To Analysis, compare and give the fair view with the help of ratios.

8. To study how the factors influence the value of the stock.

2.3 SOURCES OF DATA COLLECTION

SECONDARY DATA

Data that has earlier been harvested from primary sources and made easily
available for academics to exploit for their own study is known as secondary data.
It is a category of information that has already been gathered.

45
The analysis of TATA STEEL AND JSW STEEL makes up the data. Research on
financial statements was done using a variety of stock websites. TATA STEEL and
JSW STEEL information was compiled from Wikipedia, Money Control, the
Bombay Stock Exchange, and the National Stock Exchange.

The internet, books, and news have all been used to investigate further facts,
figures, statistics, and data.

The whole study effort is based on secondary data because there has been no
fieldwork, or collection of primary data. And the comparison of these facts and
numbers has determined the final outcomes.

2.4 SCOPE OF RESEARCH

These kinds of research aid in understanding the true or fair value of stocks.
Aids in understanding how individuals perceive their investment behaviour based
on ratio analysis.
The investor can choose the better alternative by comparing the firms. People tend
to favour the investment or commodity markets.

2.5 LIMITATION OF THE STUDY

1. Time has been a constraint factor and it has been challenging the various
aspects of finance with the proposed time.

2. Financial statements are only in term of reports. They are not final because
the exact financial position can be known only when the business is closed.

3. The financial performance covering a large period say 20 years or 30 years

can give a much clear picture of management practices of financial
performance.
Our study covering a period of 2 years can touch only a part of the problem

46
 4. Future changes are largely unpredictable because it is mainly based on the
market situations.

5. The intrinsic value of the company is determined by the profit, which the
company earned over a period of time and it is directly related to both
internal and external factors, which are out of one’s control.

CHAPTER 3: LITERATURE REVIEW

In order to demonstrate a link between price and several metrics of fundamental

worth, Asher Curtis (2008) examines the time series characteristics. The current
study employs a fundamental value model that combines anticipated risk and
potential growth. The constancy of the link between stock price and growth has
been investigated by the researcher.

Samiloglu and Damirgunes (2008) noted that even when a company's profitability
is consistently good, poor working capital management practises may cause the
company to go out of business. They assert that the current, acid test, and cash
ratio measurements of liquidity ratios are ineffective because they cannot give
precise and granular information about the efficacy of working capital
management.

Frank Welfer and Martin Weber (2007): Consider the response of an average
transaction price to the emergence of fresh information. Researchers have shown
that people would underreact to a positive shock to core worth. Following this, it
is discovered that there is less under response if there is a negative wave. Later,
when intrinsic value is created, the stock prices slowly begin to follow a
momentum pattern.

Maureen Butler (2005): In a setting of strategic alliances, Maureen Butler (2005)

makes it evident that a fundamental analysis technique based on accounting may
foresee the market's long-term success. According to the researcher, partnerships

47
are more prevalent in high technology businesses and their primary goal is to
emphasise growth. These partnerships are growth-oriented, and the market
typically does not forecast the businesses' long-term success.

Xie, W. Bruce Johnson (2004) Analyse the applicability of price convergence and
its effect on share value. According to the researcher, typical basic analysis departs
from fundamental principles. According to this analysis, only 23% of stocks in the
top/bottom value to price quintile exhibit price convergence over a 36-month
period. 26% more stocks have displayed value convergence.

Nicola, Nicoletti (2004): Nicola, Nicoletti (2004): Examine the profitability of

different strategies based on fundamental ratios. The researchers happen a
practical oriented approach to evaluate the profitability of numerous strategies
based on the fundamental ratios. Considering the information from NASDAQ 100
from 1998 to 2004, the researcher has calculated ratios, such as, book-to-market
equity, Earnings per Share to price, for each stock composing the index, cash flow
per share to price. On the basis of calculation the firms are ranked corresponding
to these ratios by according equal weight to each of these ratios. The researchers
have learned that such strategies are giving further market returns which is as high
as 25% to 30% per Year. Edward.P.Swanson and Lynn Rees (2001) envisage on
the relevance of Fundamental Analysis for the stocks traded on Mexican Bolsa.
The researchers followed that the Mexican firms were using a replacement cost,
price level adjusted accounting system and encountered a currency devaluation
and sharp inflation over the period studied. Researchers have found that
Fundamental Analysis has incremental value relevance in comparison to earnings.

Yanfeng Xue and May H. Zhang (2001): Examine the impact of stock valuation and
fundamental signals on institutional investors' judgements. They contend that a stock's
positive facts are implied and signalled by the fundamental signals. The research
establishes the reliability of transitory investors' choices about market entry. The
analysis also demonstrates how arbitrage risk and transaction costs play a role in
defining an investing strategy. It is further demonstrated in the paper that temporary

48
institutions trade more cautiously while still paying attention to fundamental signals.
These investors prioritise arbitration risk and transaction expenses over all other types
of risk.

Saad Albuloushi (2000) makes an effort to predict earnings and equity value using
information from financial statements. The study may be divided roughly into two
sections, with the first portion focusing on the importance of stock returns and
financial statement information. The study focuses on the widespread issue of
company groups that exploit financial statements to enhance their marketability in the
second section. He tries to relate the equity value to the financial accounting data. The
researchers aim to anticipate earnings using such association. The study also comes to
the conclusion that financial statements have been less important in recent years.

Joseph. D. Piotroski (2000): Assesses the basic approach known as the fundamental
Score, which is created and used for enterprises with a high BTM ratio. This grade
places a strong emphasis on assessing a firm's many basic factors, including
profitability, liquidity, solvency, and operational effectiveness. This study creates an
index that incorporates each of these characteristics. In the two years after the
portfolios' establishment, less than 44% of all high Book-to-Market enterprises
experience positive market returns, according to this study. The main contribution of
this study is that utilising straightforward accounting data, individual investors may
create higher value portfolios.

This data is based on the companies' previous past performance.

Article published on April 1st, 2023 on AVENUEMAIL.on .

49
TATA STEEL AND TATA WORKERS UNION TO WORK TOGETHER TO BRING
THE STEEL SECTOR FORWARD: MD TV NARENDRAN

Jamshedpur, March 31: The Tata Workers Union (TWU), the recognised union of
Tata Steel, opened the historic Michael John Auditorium on Friday in a new
configuration.

Tata Steel's MD, TV Narendran, gave it an official opening. Vice President HRM
Atrayee Sanyal, Vice President Sanjeev Paul, and other representatives of Tata
Steel were present on this occasion.

The future of Tata Steel and the steel industry is quite bright, according to T. V.
Narendran, CEO and MD of Tata Steel. But the union will need to collaborate in
order to increase production.

“ The most crucial thing to do is to improve the market in order to manage the
price of steel. The infrastructure projects being carried out by the Indian
government and other governments would assist the steel industry. However, there
is now a requirement that steel be produced in accordance with consumer
demands, and the needs of the populace should be satisfied by regulating market
pricing, said Narendran.

He said Tata Steel had expanded significantly. It will develop in the foreseeable
future as well. He stated that there will no longer be any iron ore mining beyond
2030. We will have to pay more for iron ore. In such a case, we must always be
prepared for that moment.

“The market will be controlled by whomever produces the most goods. To position
the business for the future, the union must collaborate. In order for the union to be
ready to prepare the firm for the future, all office bearers, from the top three to the
committee members, should have the same training as the management officials,
said Narendran.

He asserted that in order for management and the union to advance with respect
for one another, it is necessary today.

50
An editorial posted on FINANCIAL EXPRESS dated on March 30th, 2023

TATA STEEL TO MANUFACTURE WORLD-CLASS SEATING SYSTEMS,

INTERIOR PANELS FOR VANDE BHARAT EXPRESS TRAINS

The seats and interior panels for India's domestic semihigh speed Vande Bharat
Express trains are produced by Tata Steel. The 23 cars of the blue and white train
would have light weight seats thanks to the Jharkhand-based global steelmaking
firm. Additionally, interior panels made of fiber-reinforced polymer composites
will be produced for the 16 coaches of the high-speed train.

The top steel producer in the nation tweeted on March 23, 2023, "Under the
'MakeInIndia' programme, we've utilised fibre reinforced composites to construct
world-class seating systems & interior solutions for the Vande Bharat Express.

A big impact indeed towards India’s progress!”

51
An editorial posted on MONEY CONTROL dated on March 14th, 2023

JSW STEEL IS ADDING CAPACITY AT RIGHT TIME TO RIDE STRONG

DEMAND, SAYS MOTILAL OSWAL

According to Motilal Oswal Financial Services, JSW Steel is expanding capacity at the
perfect moment to take advantage of the company's rapid development trajectory. The
brokerage company said that the steelmaker is implementing capital expenditure
(capex) programmes to increase its Indian steel capacity to 37 mt from 27 mt by FY25.

The increase in capacity is the result of a positive forecast for the demand for steel.
Domestic demand for steel is thought to be being driven by the government's aggressive
push for housing, development, infrastructure, and better demand for automobiles and
renewable energy sources.

“The increasing domestic demand is anticipated to help JSTL (JSW Steel) increase
its market share, according to Motilal Oswal. The brokerage company also sees
JSW Steel's status as the industry's go-to source for steel as a plus.

ARTICLE posted in BUSINESS TODAY on March 29th, 2023

TATA STEEL, JSW STEEL JSPL: WHAT ARE THE KEY TRADING LEVELS FOR
THESE METAL STOCKS

Similar to their international rivals, Dalal Street equities declined in price on

Tuesday. To end the day at 57,613.72, the BSE Sensex dropped 40.14 points, or
0.07 percent. Nifty50 decreased 34 points, or 0.20 percent, to close the day at
16,951.70. The sectoral indexes' weakest performers were the metal stocks, which
included companies like Tata Steel, JSW Steel, and Jindal Steel and Power. Before
Wednesday's trading session, this is what Swastika Investmart's Senior Technical
Analyst Pravesh Gour has to say about these stocks:

Tata Steel | Resistance: ₹ 105 | Support: ₹ 100

52
The Head and Shoulders pattern has broken down, according to Tata Steel. The
200-DMA of 105 presents resistance to the counter. The fact that it is trading below
its significant moving averages indicates that the structure is frail. With a bias
towards the downside, the momentum indicator RSI is trading below the 50-point
level. On the other hand, MACD is exhibiting a downward centerline crossing. On
the plus side, the level of 105 will be a challenge right away. The level of 100 is a
powerful and psychological support level for Tata Steel, which is a drawback.

JSW Steel | Resistance: ₹ 680 | Support: ₹ 640-610 |

The price of JSW Steel's shares is declining. It broke below its neckline support
with significant volume during the most recent trading session. A bad warning for
the stock is that it is now trading below its significant moving averages. On the
negative side, the level of 640 is crucial; below it, a decline towards the level of
610 is anticipated. On the plus side, the level of 680 is a place that is quickly
vulnerable.

Jindal Steel & Power| Resistance: ₹ 580 | Support: ₹ 500-480 |

From June 2022 to January 2023, Jindal Steel & Power had a significant upturn.
It advanced from the 300 to the 600 levels, and on the daily chart, a Head and
Shoulders pattern broke out with significant volume. Resistance is being provided
by the collection of moving averages at about 580. The psychological support level
for the stock is 500 on the downside.
In the near future, one may anticipate prices to fall to the 480 level, which is also
its 200-SMA.

53
 CHAPTER 4: DATA ANALYSIS, INTERPRETATION & PRESENTATION

TATA STEEL FINANCIAL STATEMENTS

PROFIT & LOSS ACCOUNT OF TATA STEEL (in
Mar-22 Mar-21
Rs. Cr.)
12 months 12 months
INCOME
REVENUE FROM OPERATIONS [GROSS] 127,681.40 82,828.16
Less: Excise/Service Tax/Other Levies 0 0
REVENUE FROM OPERATIONS [NET] 127,681.40 82,828.16
TOTAL OPERATING REVENUES 129,021.35 84,132.92
Other Income 1,452.02 755.11
TOTAL REVENUE 130,473.37 84,888.03
EXPENSES
Cost Of Materials Consumed 35,256.98 20,757.04
Purchase Of Stock-In Trade 4,089.03 1,688.84
Operating And Direct Expenses 0 0
Changes In Inventories Of FG,WIP And Stock-In
-1,820.87 2,176.56
Trade
Employee Benefit Expenses 6,365.80 5,741.94
Finance Costs 2,792.08 4,541.02
Depreciation And Amortization Expenses 5,463.69 5,469.26
Other Expenses 36,458.65 27,966.07
TOTAL EXPENSES 86,147.27 67,019.49
PROFIT/LOSS BEFORE EXCEPTIONAL,
44,326.10 17,868.54
EXTRAORDINARY ITEMS AND TAX
Exceptional Items -235.45 741.3
PROFIT/LOSS BEFORE TAX 44,090.65 18,609.84
TAX EXPENSES-CONTINUED OPERATIONS
Current Tax 11,611.94 -1,329.78
Less: MAT Credit Entitlement 0 0
Deferred Tax -532.47 2,861.65
Tax For Earlier Years 0 0
TOTAL TAX EXPENSES 11,079.47 1,531.87
PROFIT/LOSS AFTER TAX AND BEFORE
33,011.18 17,077.97
EXTRAORDINARY ITEMS
PROFIT/LOSS FROM CONTINUING
33,011.18 17,077.97
OPERATIONS
PROFIT/LOSS FOR THE PERIOD 33,011.18 17,077.97
OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE

54
Basic EPS (Rs.) 270.33 145
Diluted EPS (Rs.) 270.13 144.99
VALUE OF IMPORTED AND INDIGENIOUS RAW MATERIALS STORES,
SPARES AND LOOSE TOOLS
Imported Raw Materials 0 0
Indigenous Raw Materials 0 0
STORES, SPARES AND LOOSE TOOLS
Imported Stores And Spares 0 0
Indigenous Stores And Spares 0 0
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 3,007.08 1,145.92
Tax On Dividend 0 0
Equity Dividend Rate (%) 510 250

55
BALANCE SHEET OF TATA STEEL (in Rs.
Mar-22 12 Mar-21 12
Cr.)
mths mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 1,222.37 1,198.78
TOTAL SHARE CAPITAL 1,222.37 1,198.78
Reserves and Surplus 124,211.39 93,207.56
TOTAL RESERVES AND SURPLUS 124,211.39 93,207.56

TOTAL SHAREHOLDERS FUNDS 125,433.76 94,406.34

NON-CURRENT LIABILITIES
Long Term Borrowings 20,290.81 31,545.41
Deferred Tax Liabilities [Net] 8,087.57 8,517.78
Other Long Term Liabilities 11,824.25 12,602.79
Long Term Provisions 2,685.00 2,572.23
TOTAL NON-CURRENT LIABILITIES 42,887.63 55,238.21
CURRENT LIABILITIES
Short Term Borrowings 11,984.66 984.68
Trade Payables 21,091.14 13,426.21
Other Current Liabilities 19,506.61 14,579.80
Short Term Provisions 1,082.42 1,076.91
TOTAL CURRENT LIABILITIES 53,664.83 30,067.60
TOTAL CAPITAL AND LIABILITIES 221,986.22 180,490.93

ASSETS
NON-CURRENT ASSETS
Tangible Assets 93,484.40 96,287.55
Intangible Assets 806.03 855.73
Capital Work-In-Progress 14,159.32 10,499.49
Other Assets 0 0
FIXED ASSETS 108,832.39 108,051.56
Non-Current Investments 43,401.43 29,087.33
Deferred Tax Assets [Net] 0 0
Long Term Loans And Advances 30,195.27 7,570.10
Other Non-Current Assets 8,267.56 6,507.54
TOTAL NON-CURRENT ASSETS 190,696.65 151,216.53

56
CURRENT ASSETS
Current Investments 96.11 7,096.80
Inventories 19,942.94 12,857.51
Trade Receivables 3,280.30 2,878.58
Cash And Cash Equivalents 2,855.29 2,396.90

Short Term Loans And Advances 2,368.01 1,564.37

Other Current Assets 2,746.92 2,480.24
TOTAL CURRENT ASSETS 31,289.57 29,274.40

TOTAL ASSETS 221,986.22 180,490.93

OTHER ADDITIONAL INFORMATION

CONTINGENT LIABILITIES, COMMITMENTS

Contingent Liabilities 37,797.38 33,426.07
CIF VALUE OF IMPORTS
Raw Materials 0 0

Stores, Spares And Loose Tools 29,071.56 13,408.18

Trade/Other Goods 29,071.56 13,408.18
Capital Goods 0 0
EXPENDITURE IN FOREIGN EXCHANGE
Expenditure In Foreign Currency 505.33 412.85
REMITTANCES IN FOREIGN CURRENCIES
FOR DIVIDENDS
Dividend Remittance In Foreign Currency -- --
EARNINGS IN FOREIGN EXCHANGE
FOB Value Of Goods -- --
Other Earnings 17,187.78 13,241.53
BONUS DETAILS
Bonus Equity Share Capital 252.97 252.97
NON-CURRENT INVESTMENTS

57
Non-Current Investments Quoted Market Value 1,182.53 537.85
Non-Current Investments Unquoted Book 13,051.52 352.37
Value
CURRENT INVESTMENTS
Current Investments Quoted Market Value -- --
Current Investments Unquoted Book Value 96.11 7,096.80

CASH FLOW OF TATA STEEL (in

Mar-22 Mar-21
Rs. Cr.)
12 mths 12 mths
NET PROFIT/LOSS BEFORE
EXTRAORDINARY ITEMS AND 44,090.65 18,609.84
TAX
Net Cash Flow From Operating
41,986.12 37,554.77
Activities
Net Cash Used In Investing Activities -34,167.79 -13,665.22
Net Cash Used From Financing
-7,368.05 -23,385.49
Activities
Foreign Exchange Gains / Losses 0 0
Adjustments On Amalgamation Merger
0 0
Demerger Others
NET INC/DEC IN CASH AND CASH
450.28 504.06
EQUIVALENTS
Cash And Cash Equivalents Begin of
2,221.31 1,717.25
Year
Cash And Cash Equivalents End Of
2,671.59 2,221.31
Year

58
 JSW STEEL FINANCIAL STATEMENTS

PROFIT & LOSS ACCOUNT OF JSW Mar-22 12 Mar-21 12

STEEL (in Rs. Cr.) mths mths

INCOME
REVENUE FROM OPERATIONS
116,928.00 69,458.00
[GROSS]

Less: Excise/Service Tax/Other Levies 0 0

REVENUE FROM OPERATIONS [NET] 116,928.00 69,458.00

TOTAL OPERATING REVENUES 118,820.00 70,727.00

Other Income 1,929.00 669
TOTAL REVENUE 120,749.00 71,396.00
EXPENSES
Cost Of Materials Consumed 51,457.00 28,743.00

Purchase Of Stock-In Trade 234 199

Operating And Direct Expenses 0 0

Changes In Inventories Of FG,WIP And

-3,112.00 -872
Stock-In Trade

Employee Benefit Expenses 1,870.00 1,501.00

Finance Costs 3,849.00 3,565.00
Depreciation And Amortisation Expenses 4,511.00 3,781.00
Other Expenses 36,503.00 21,897.00
TOTAL EXPENSES 95,312.00 58,814.00
PROFIT/LOSS BEFORE
EXCEPTIONAL, EXTRAORDINARY 25,437.00 12,582.00
ITEMS AND TAX
Exceptional Items -722 -386
PROFIT/LOSS BEFORE TAX 24,715.00 12,196.00

59
TAX EXPENSES-CONTINUED OPERATIONS
Current Tax 4,411.00 2,162.00
Less: MAT Credit Entitlement 0 0
Deferred Tax 3,602.00 1,641.00
Tax For Earlier Years 0 0
TOTAL TAX EXPENSES 8,013.00 3,803.00

PROFIT/LOSS AFTER TAX AND

16,702.00 8,393.00
BEFORE EXTRAORDINARY ITEMS

PROFIT/LOSS FROM CONTINUING

16,702.00 8,393.00
OPERATIONS

PROFIT/LOSS FOR THE PERIOD 16,702.00 8,393.00

OTHER ADDITIONAL INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.) 69.48 34.92
Diluted EPS (Rs.) 69.1 34.72

VALUE OF IMPORTED AND INDIGENIOUS RAW MATERIALS STORES,

SPARES AND LOOSE TOOLS

Imported Raw Materials 0 0

Indigenous Raw Materials 0 0

STORES, SPARES AND LOOSE TOOLS

Imported Stores And Spares 0 0

Indigenous Stores And Spares 0 0

DIVIDEND AND DIVIDEND PERCENTAGE

Equity Share Dividend 1,571.00 483
Tax On Dividend 0 0
Equity Dividend Rate (%) 1,735.00 650

60
BALANCE SHEET OF JSW STEEL (in Mar-22 12 Mar-21 12
Rs. Cr.) mths mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 301 302
TOTAL SHARE CAPITAL 301 302
Reserves and Surplus 63,200.00 46,675.00
TOTAL RESERVES AND SURPLUS 63,200.00 46,675.00

TOTAL SHAREHOLDERS FUNDS 63,501.00 46,977.00

NON-CURRENT LIABILITIES
Long Term Borrowings 41,176.00 39,551.00
Deferred Tax Liabilities [Net] 6,935.00 3,095.00
Other Long Term Liabilities 3,832.00 5,816.00
Long Term Provisions 1,292.00 753
TOTAL NON-CURRENT LIABILITIES 53,235.00 49,215.00
CURRENT LIABILITIES
Short Term Borrowings 9,259.00 1,285.00
Trade Payables 24,328.00 12,150.00
Other Current Liabilities 12,320.00 23,362.00
Short Term Provisions 227 243
TOTAL CURRENT LIABILITIES 46,134.00 37,040.00
TOTAL CAPITAL AND LIABILITIES 162,870.00 133,232.00

ASSETS
NON-CURRENT ASSETS
Tangible Assets 69,767.00 50,328.00
Intangible Assets 1,879.00 1,614.00
Capital Work-In-Progress 12,459.00 28,914.00
Other Assets 0 0
FIXED ASSETS 84,245.00 80,984.00
Non-Current Investments 18,028.00 12,458.00
Deferred Tax Assets [Net] 0 0

61
Long Term Loans And Advances 5,763.00 5,382.00
Other Non-Current Assets 7,349.00 4,705.00
TOTAL NON-CURRENT ASSETS 115,385.00 103,529.00

CURRENT ASSETS
Current Investments 0 0
Inventories 21,028.00 10,692.00
Trade Receivables 6,146.00 3,333.00
Cash And Cash Equivalents 15,527.00 11,746.00
Short Term Loans And Advances 265 733
OtherCurrentAssets 4,519.00 3,199.00
TOTAL CURRENT ASSETS 47,485.00 29,703.00
TOTAL ASSETS 162,870.00 133,232.00
OTHER ADDITIONAL INFORMATION

CONTINGENT LIABILITIES,
COMMITMENTS
Contingent Liabilities 31,640.00 51,081.00
CIF VALUE OF IMPORTS
Raw Materials 30,208.00 12,975.00
Stores, Spares And Loose Tools 0 0
Trade/Other Goods 0 0
Capital Goods 713 1,734.00
EXPENDITURE IN FOREIGN
EXCHANGE
Expenditure In Foreign Currency 3,149.00 1,741.00
REMITTANCES IN FOREIGN
CURRENCIES FOR DIVIDENDS
Dividend Remittance In Foreign
-- --
Currency
EARNINGS IN FOREIGN EXCHANGE
FOB Value Of Goods 23,238.00 14,205.00
Other Earnings 305 122
BONUS DETAILS
Bonus Equity Share Capital -- --
NON-CURRENT INVESTMENTS

62
 Non-Current Investments Quoted Market
2,580.00 750
Value
Non-Current Investments Unquoted
Book 1,926.00 5,032.00
Value
CURRENT INVESTMENTS
Current Investments Quoted Market
-- --
Value
Current Investments Unquoted Book
-- --
Value

CASH FLOW OF JSW STEEL (in Rs.

Mar-22 12 Mar-21 12
Cr.)
mths mths

NET PROFIT/LOSS BEFORE

24,715.00 12,196.00
EXTRAORDINARY ITEMS AND TAX

Net CashFlow From Operating Activities 23,335.00 17,733.00

Net Cash Used In Investing Activities -17,652.00 -2,609.00

Net Cash Used From Financing Activities -9,134.00 -7,441.00

Foreign Exchange Gains / Losses 0 0

Adjustments On Amalgamation Merger

0 0
Demerger Others

NET INC/DEC IN CASH AND CASH

-3,451.00 7,683.00
EQUIVALENTS

Cash And Cash Equivalents Begin of Year 11,121.00 3,438.00

Cash And Cash Equivalents End Of Year 7,670.00 11,121.00

GLIMPSE OF FUNDAMENTAL RATIO

63
 TATA STEEL JSW STEEL

SECTOR MANUFACTURING MANUFACTURING

INDUSTRY STEEL STEEL

WEBSITE https://www.tatasteel.com/ https://www.jsw.in/

AUTHORIZED
2100 6015
CAPITAL (Rs in Cr.)
ISSUED CAPITAL
1223.44 240.05
(Rs. in Cr.)
MARKET CAPT
127,281.27 164,902.78
(Rs. in Cr.)
FINANCIAL RATIOS
EARNING PER
332.35 85.96
SHARE (Rs.)
P/E RATIO 3.98 8.52

P/B RATIO 1.36 2.57

RETURN ON EQUITY 35.08 30.70

RETURN ON
CAPITAL 28.31 24.85
EMPLOYED
RETURN ON ASSETS 14.06 10.51
DIVIDEND TO PRICE
51 17.35
RATIO
CURRENT RATIO 1.02 1.14

LIQUID RATTIO 0.48 0.55

DEBT-EQUITY
0.60 1.04
RATIO
GROSS PROFIT
35.39 23.02
RATIO
OPERATING PROFIT
20.06 19.16
RATIO

64
 NET PROFIT RATIO 16.84 13.67

FINANCIAL RATIO

1. Earnings Per Share (EPS)

EPS is a financial ratio, which divides net earnings presented to common
shareholders by the average outstanding shares over a given period of time.
The EPS formula implies a company’s ability to produce net profits for the
common shareholders.

EPS = PAT / No. Of Shares

Interpretation: The earning per share of TATA steel has climbed very high while
comparing with 2021. On the other hand even JSW steel has given a great
performance. Both the industry a aggressive competition. But on comparing with
2022 data TATA steel net profits returns for the common shareholder is high as
that of JSW steel

YEAR TATA STEEL JSW STEEL

2022 332.35 85.96

2021 63.78 32.91

100 150 350

2. P/E Ratio (profit earnings ratio)

65
 The price-to-earnings ratio refers to the ratio for assessing a company that
measures its current share price relative to its earnings per share (EPS). P/E
ratios are behaved by investors and analysts to conclude the relative value of a
company's shares in an apples-to-apples comparison.

P/E Ratio = Market Price of a Share / Earnings per Share

Interpretation: the below graph exhibits the detail about P/E ratio that is Profit
Earning ratio. As it is low the P/E the better the company’s condition. In 2021
both these company had a higher P/E ratio. But these companies had a drop
trend in the year 2022. While comparing TATA steel is in superior position.

YEAR TATA STEEL JSW STEEL

2022 3.98 8.52

2021 13.24 14.23

3.98

3. Price To Book Value (P/B)

The price-to-book ratio (P/B ratio) to evaluate a firm's market capitalization to

its book value and find undervalued companies. This ratio is hereby calculated

66
 by dividing the company's current stock price per share and by its book value
per share (BVPS).
P /B Ratio = Market Price per Share / Book Value per Share

Interpretation: From the below graph it displays the trend of Price to Book
Value. Both the company is display the growth trend. But while comparing
JSW steel is showing the superior result than that of TATA steel which is 1.36
and JSW with 2.57.

YEAR TATA STEEL JSW STEEL

2022 1.36 2.57

2021 1.28 2.44

2.57
2.5 2.44

1.5
1.28 1.36

0.5

4. Return on equity
Return on equity (ROE) is a ratio of financial performance which calculated
by dividing net income by shareholders' equity. Because shareholders' equity
is equal to a company’s assets minus its debt, ROE is judged the return on net
assets.
ROE = Net Income / Shareholder’s Equity 100

67
 Interpretation: below graph confirms the data about the return on the equity.
Higher the ROE (Return on equity) the improve the company’s management
is at generating income and growth. In the year 2021 TATA steel productivity
was less as compared to JSW Steel. But on the next year TATA steel proven a
great rise by from the past year. Whereas JSW steel has shown great growth.
But while comparing with TATA steel.

TATA steel is the better option

TATA STEEL JSW STEEL

YEAR

2022 35.08 30.70

2021 10.19 16.91

30.7

16.91

5. Return on capital employed

Return on capital employed is evaluated by dividing net operating profit, or
earnings before interest and taxes, by capital employed. The other option to
calculate it is by dividing earnings before interest and taxes by the difference
between total assets and current liabilities.

ROCE = EBIT / Capital Employed 100

Interpretation: From the below graph showing the data about ROCE (Return
on Capital Employed). On the year 2021 the ROCE of TATA Steel was12.69

68
 and that of JSW steel 15.28. Showing JSW has a valuable offer. But the next
year there has been a fall of JSW and a growth of TATA steel.

So from the current the ROCE of TATA steel is better.

YEAR TATA STEEL JSW STEEL

28.31 24.85
2022
2021 12.69 15.28

12.69

10 20 30

6. Return on assets
Profitability is evaluated relative to costs and expenses. It's examined in
comparison to assets to see how effective a company is at employing assets to
generate sales and profits.
Return on Assets = Total Assets / Net Income 100
Interpretation: on the below graph it indicates the return on Assets of the
company. In the year 2021 TATA steel Return on Asset was not satisfactory
has higher the ROA
(Return on Asset) the better. JSW steel was on better terms than on TATA steel

But in the year 2022 TATA steel had risen as that of JSW steel.

69
 YEAR TATA STEEL JSW STEEL

2022 14.06 10.51

2021 3.05 5.33

3.05

7. Dividend to price ratio

The dividend yield or we can also say dividend–price ratio of a share is the
dividend per share, divided by the price per share. It is also said as a company's
total annual dividend payments divided by its market capitalization by also
assuming the number of shares is constant.
Dividend to Price Ratio = Dividend per Share / Price per Share
Interpretation: from the below graph it indicates that higher the yield the better.
But in the year 2021 TATA steel was 25 while JSW has less that is 6.50. And
in the next year TATA steel has given a great boom showing it is the best option
for the investor.

YEAR TATA STEEL JSW STEEL

2022
51 17.35

70
 2021 25 6.50

60

50

40

30
25

20

10

8. Current ratio

The current ratio helps to measure a company's ability to pay off its current
liabilities (payable within one year) with its total current assets such as cash,
accounts receivable, and inventories.
Current Ratio = Current Assets / Current Liabilities

Interpretation: liquidity ratio displays the ability to pay off the current liability.
For the year 2022 JSW STEEL liquidity performance was good than that of
TATA
STEEL

YEAR TATA STEEL JSW STEEL

2022 1.02 1.14

2021 0.85 0.83

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 1.2 1.14
1.02

0.85
0.8

0.6

0.4

0.2

9. Liquid ratio/ Quick ratio

The quick ratio helps to measurea a company's ability to meet its short-term
obligations along with its most liquid assets and therefore excludes inventories
from its current assets. It is also called as acid-test

Quick Ratio = Quick Assets / Quick Liabilities

Interpretation: - From the below graph both company is illustrating an

increasing trend. But both are at the below the level of acceptable while
comparing with the standard ratio 1:1

YEAR TATA STEEL JSW STEEL

2022 0.48 0.55

2021 0.38 0.50

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 0.5

0.1 0.2 0.3 0.4 0.5 0.6

10. Debt- Equity ratio

Debt-to-equity (D/E) ratio helps to evaluate a company’s financial leverage
and is calculated by dividing a company’s total liabilities by its shareholder
equity. D/E ratio is an important metrical in corporate finance. It is a portion
of the degree to which a company is financing its operations with debt rather
than its own resources.
Debt-Equity Ratio = Long Term Debt / Proprietors Equity
Interpretation: From the below graph both the company is presenting the
decreasing trend. TATA steel has a drop to 0.60 from the 1.10. But on the other
side JSW has only slight drop from 1.11 to 1.04.

So the result is TATA steel performance is comparatively good than that of

JSW steel. Lower the debt-equity ratio the better.

YEAR TATA STEEL JSW STEEL

0.60 1.04
2022
2021 1.10 1.11

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 1.2
1.04

0.8

0.6

0.4

0.2

11. Gross profit ratio:

Gross profit ratio (GP ratio) is a profitability ratio which helps to measure the
relationship between gross profit and total net sales revenue. It is a renewed
tool to evaluate the operational performance of the business. The ratio is
calculated by dividing the gross profit figure by net sales.

Gross Profit Ratio = Gross profit / Net Sales 100

Interpretation: the instability of both the company can be seen from the year
2021 to 2022. But there is a boom in 10 times growth on gross Profit ratio of
TATA steel. But on the other side, JSW steel has only the slight growth. Yet, it
shows both the company can achieve its operational expenses

YEAR TATA STEEL JSW STEEL

2022 35.39 23.02

2021 25.73 21.88

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 23.02

35.39

21.88

25.73

20 25

12. Operating Profit Ratio:

The operating profit ratio refers to the amount of money a company makes
from its operations. It shows the financial sustainability of a company’s basic
operations preceding to any financial or tax-related implications. The
operational margin ratio is a measure that decides how much profit a company
makes on a rupee of sales.
Operating Profit Ratio = Net Operating Profit/ Net Sales x 100

Interpretation: from the below graph it displays that both the company has
boomed in the operating profit ratio. Both the investors believe the higher the
profit margin ratio the effective management can turn it in to sales and higher
profits. And this specification is satisfied by TATA steel. Though JSW also
shown the growth graph, but that growth is very less while comparing to TATA
steel.

YEAR TATA STEEL JSW STEEL

2022 20.06 19.16

2021 8.73 14.41

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 25

20

15

10

13. Net Profit Ratio

The net profit margin, or simply net margin, helps to display how much net
income or profit is generated as a percentage of revenue. It is the ratio of net
profits to comparison to revenues for a company or business segment. Net
profit margin is typically stated as a percentage but can also be represented in
decimal form. The net profit margin shows how much of each rupee in revenue
collected by a company translates into profit.

Net Profit Ratio = NPAT/ Net Sales x 100

Interpretation: From the below graph it display’s the trend of net profit margin.
Both company has an growing trend but in the year 2021 TATA steel had low
Net Profit but has a desperate growth in the year 2022. Whereas on the other
side JSW has a drop while comparing with the TATA steel. So the profit margin
of TATA steel is good than that of JSW steel.

YEAR TATA STEEL JSW STEEL

2022 16.84 13.67

2021 5.02 9.85

76
 13.67

9.85

5.02

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 CHAPTER 5: FINDINGS

TATA steel has the highest EPS (Earning Per Share) i.e. ₹ 332.35
Stock price trend – in the last 1 year while seeing the trend of the stock prices
of Tata steel and JSW Steel. Tata Steel has been declined by around 9 % and
JSW steel has been advanced by around 9 %.
January 2023 TATA STEEL was rose by 6% whereas JSW STEEL shed by 6%.
While considering in long term both the stocks have a multi bagger returns.
Tata steels total income is nearly twice that of JSW, its revenue has grown from
Compound Annual Growth Rate of 17.2% against 23.5% of JSW steel in the
last five years.
Both the indicators help to ascertain a company’s profitability i.e. operating
profit margin and net profit margin. While the ascertainment TATA steel has
shown a positive result.
The average of two year operating profit margin for TATA STEEL stood at
20.06% against 19.16 % of JSW STEEL. In this condition TATA steel is
leading with high operating profit margin.
Tata Steel has high net profit margin ratio (16.84), ensures that the company is
able to effectively control its costs.

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 CHAPTER 6: SUGGESTION

• Both the company is booming in the Indian market and the foreign market.
• If JSW make the improvement in their management working, it can also equally
compete with TATA steel.
• JSW should try to control its expenses so that the profit can rise in the market.
• TATA steel is way more diversified than and hold more revenue than JSW steel.
• So if JSW want to develop in the market. It should try more diversified ways.
• The decision can opted once analyzes is done properly and then the investment
decision can be made.
• For long term investment one should have a clear idea and background of the
market and proper Fundamental analysis should be conducted.
• Both the company has a great potential to grow in the market. As it also one
booming sector in the market. As one doesn’t know what holds tomorrow. And
we all know how steel are demanded in the market. So the growth can be
expected in a positive way. So it can be considered a better investment option.
• Both the company is booming in the Indian market and the foreign market

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 CHAPTER 7: CONCLUSION

The Fundamental Analysis is a very important and relevant topic. There is always a
need to get a complete background knowledge about the company before the investors
decide to invest in the particular sector. In our study the sector was majorly on the Steel
Company. And was more narrowed to only 2 renowned company in India i.e. TATA
steel and JSW steel. And these ratio analysis helps the investors to analyze, compare
and to draw a decision. Though these analysis itself is not the only way to analyze the
company thoroughly it is just one of the parameter of all. As the future keeps on
changing not only the internal factors impact the company’s value but also the external
factor.
But these technique is more famous in the market than the others. Though analyze of
data takes time but the fruit of return is great and beneficial. “The important key to
investing is to remember that stocks are not Lottery Tickets” as said by Mr. Peter Lynch.
So the patience really pay off if invest in the proper company. The calculations are
based on past figures which have already happened and become a part of history. The
economy is uncertain and a rational investor should incorporate several other aspects
before taking an investment decision.

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 CHAPTER 8 : BIBLIOGRAPHY

IMAGE –
• https://www.worldsfirststockexchange.com/wpcontent/uploads/2020/11/ledger
VOC-1024x756.jpg
• https://www.worldsfirststockexchange.com/wpcontent/uploads/2020/11/aande
el_straetmaker_Capital_Amsterdam735x1024.jpg
• https://resize.indiatvnews.com/en/resize/newbucket/1200_/2021/10/sensex163
5417756.jpg.
• https://bsmedia.business-standard.com/_media/bs/img/article/2020-
06/04/full/1591290707-9753.jpg
LINKS –
• https://www.worldsfirststockexchange.com/2020/11/02/the-oldest-share/
• https://www.forbes.com/advisor/in/investing/what-is-stock-market/
• https://corporatefinanceinstitute.com/resources/capital-markets/stock-market/
• https://byjus.com/commerce/what-is-stock-exchange/
• https://www.5paisa.com/bse
• https://www.capitalvia.com/blog/what-is-national-stock-exchange
• https://bebusinessed.com/history/history-of-the-stock-market/
• https://en.wikipedia.org/wiki/Tata_Steel
• https://www.studocu.com/in/document/university-of-mumbai/bachelors-
ofcommerce-accountancy-and-finance/review-of-literature-
fundamentalanalysis-of-tata-power/275144

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