1:10 Split, 1:2 Bonus, 2.02% Dividend Yield So Far: Buy Tata's Steel Stock Ahead Of Q3? Key Fundamentals Here

Tata Group-backed steel giant, Tata Steel share price declined nearly 4% during the trading session from January 5th to 9th. Despite this, Tata Steel stock is nearly Rs 10 away from its 52-week high of Rs 187.90 apiece. The company holds a healthy dividend yield of over 2% and has distributed hefty dividends over the period of time. Also, the company delivered one bonus and one stock split in its history. The next big event would be its Q3 results for FY26. Recent production data showed that Tata Steel bagged its best-ever quarterly crude steel production of 6.34 million tons between October and December 2025. That being said, should you buy this large-cap steel stock?

Tata Steel Share Price:

After market hours of January 9, Tata Steel share price stood at Rs 178.30 apiece on BSE, down by 1.05% with market cap of Rs 2,22,579.78 crore. The stock's overall weekly performance is down by nearly 4%.

Despite this, in a year, Tata Steel shares surged by a whopping 45.20% so far. Its price-to-equity ratio is low at 15.21x, while return on equity is stable at 10.29% as of January 11, 2025, as per data from BSE.

Tata Steel Corporate Actions:

The steelmaker has delivered strong dividends in nearly two decades. While it carried one stock split which reduced its face value to Re 1 each, and also delivered one bonus issue.

Bonus Issue: The company's first ever bonus is of 1:2 which was delivered in August 2004. This ratio means that Tata Steel gave 1 free share on 2 existing shares.

Stock Split: In the post-Covid era, Tata Steel decided to split its shares in the ratio of 1:10. This took place in July 2022. The ratio led to reduction in face value from Rs 10 each to Re 1 each.

Dividends: Since June 2003, the company has delivered 28 dividends, as per Trendlyne data. In the last 12 months, the company gave an Rs 3.60 dividend per share. Its dividend yield is at 2.02%.

Tata Steel Q3 Results Expectations:

The date of Q3 results is yet to be announced. However, last week, Tata Steel revealed that its India business achieved its best-ever quarterly crude steel production of 6.34 million tons. Production was up 12% QoQ and YoY, primarily aided by higher output at the Jamshedpur and Kalinganagar facilities. For 9MFY26, production was up 6% YoY to ~17.2 million tons.

Also, during Q3FY26, improved production led to 'best-ever quarterly' deliveries and Tata Steel India crossed the '6 million ton' mark for the first time. India deliveries were up 9% QoQ and 14% YoY, primarily aided by strong sales in the domestic market. For 9MFY26, deliveries were up 6% YoY to ~16.3 million tons.

According to analysts at Emkay Global, Tata Steel could report Q3 EBITDA of Rs77.2 billion, down 15.3% QoQ, driven by a Rs1,800-2,000/t decline in NSRs and a USD5-6/t increase in coking-coal costs, partly offset by a 4.3% QoQ rise in volumes.

Further, they expect UK EBITDA losses to remain broadly flat sequentially, while the Netherlands is expected to see margin pressure, with EBITDA declining to Rs5.6 billion from Rs9.2 billion in Q2. As a result, the analysts expect European operations to post an EBITDA loss of Rs1.8 billion, compared with a profit of Rs1.5 billion in Q2.

Buy Tata Steel Stock?

In its latest report, Geojit experts said, "Tata Steel delivered a strong performance, driven by higher deliveries in India and the Netherlands. Margins and profitability saw a significant improvement owing to cost reduction measures. The Indian business is expected to remain supportive, with volumes likely to improve owing to the ramp-up of the Kalinganagar facility. Meanwhile, the Netherlands business is well-positioned to capitalise on the European Union steel policy, which is expected to aid the overall performance."

While the proposed divestment of the ferro alloys plant and the acquisition of the remaining 50% stake in Tata BlueScope Steel Private Limited are in line with the company's long-term growth strategy. Additionally, the implementation of safeguard duties is expected to shield domestic operations from import pressures, thereby reinforcing Tata Steel's competitive position and supporting its growth momentum.

Hence, Geojit experts suggested BUY with Rs 205 target price. Furthermore, Elara Capital has assigned ACCUMULATE rating with Rs 187 target price. Additionally, Emkay Global has maintained its Buy rating with Rs 200 target price.

About Tata Steel:

Tata Steel operates in 26 countries, with key operations in India, Netherlands and United Kingdom. The leading global steel manufacturer serves the automotive, construction, engineering, energy and power sectors.

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