How Tata Steel’s Market Cap Increased 256% In One Year
TV Narendran, Managing Director, Tata SteelImage: Neha Mithbawker for Forbes India As the pandemic unfolded in Europe, TV Narendran had access to an early warning that none of its Indian counterparts had. Tata Steel Europe had seen sales plummet as Covid-19 infections spread and lockdowns were announced. What if it happens here, he thought.
The improvement in operational measures was also rewarded by investors. As the benchmark NIFTY Metal rose 151% in 2020, Tata Steel’s market capitalization rose 256 percent to Rs 141,000 crore, making it the second most valuable steel company in India. The average return on equity fell from 4% over the past decade to 11% in the fiscal year ended March 2021.
After nearly a decade, the company is on the rise and its next phase of growth should come with much more financial discipline.
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