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The market asks roughly as much of Tata Steel as of UltraTech Cement.
At current prices, buyers of Tata Steel are assuming about 6% growth against 0% in its own record; for UltraTech Cement it is 19% against 14%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: both on discounted cash flow.
- Size: UltraTech Cement is worth about 1.5 times Tata Steel on the stock market.
- Record: UltraTech Cement has grown revenue faster: Tata Steel compounded at about 7% a year (FY2018–FY2026) and UltraTech Cement at about 13% (FY2019–FY2026).
- What to watch: indian margins at Tata Steel; cement prices at UltraTech Cement.
| Tata Steel | UltraTech Cement | |
|---|---|---|
| Price | ₹187 | ₹12,100 |
| Market cap | ₹2.33L Cr | ₹3.57L Cr |
| P/E | 20.1 | 40.5 |
| P/B | 2.28 | 4.65 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Discounted cash flow | Discounted cash flow |
01Two businesses
One company, two steel businesses
Tata Steel, founded in 1907 at Jamshedpur, is one of India's two largest steelmakers. Its Indian plants — Jamshedpur, Kalinganagar and Angul, the last acquired with Bhushan Steel in 2018 — have their own iron-ore mines, which makes them among the lowest-cost producers in the world.
The biggest cement maker in India
UltraTech Cement, part of the Aditya Birla group through Grasim Industries, is India's largest cement producer, with plants and grinding units across the country and a capacity well ahead of its nearest rival. It also sells ready-mix concrete and building products, and has announced a move into cables and wires.
02The records side by side
UltraTech Cement has grown revenue faster: Tata Steel compounded at about 7% a year (FY2018–FY2026) and UltraTech Cement at about 13% (FY2019–FY2026). By revenue, Tata Steel is about 2.6 times the size of UltraTech Cement. Tata Steel kept 4.7% of revenue as net profit in FY2026; UltraTech Cement kept 9.3% of revenue as net profit in FY2026. Tata Steel reported a net loss in FY2024; UltraTech Cement was profitable in every year shown.
Full ten-year tables and charts are on each company's page: Tata Steel · UltraTech Cement.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Indian marginsCaptive iron ore gives the Indian business a cost advantage that drives most of the value.
- European lossesEvery year Europe loses less money adds directly to group value.
- Cement pricesRealisation per tonne moves with regional demand and how disciplined producers are on price.
- Capacity utilisationPlants are expensive to build; running them closer to capacity lifts returns.
05What could go wrong
- The steel cycleSteel prices can fall sharply when global demand weakens.
- EuropeDecarbonisation costs and weak demand could keep European losses going.
- A price warRapid expansion by the Adani group's cement companies could pressure prices.
- Construction slowdownsWeaker housing or government infrastructure spending cuts demand.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is Tata Steel or UltraTech Cement better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, Tata Steel trades at 20.1 times earnings and 2.28 times book value, and UltraTech Cement at 40.5 times earnings and 4.65 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between Tata Steel and UltraTech Cement?
Tata Steel, founded in 1907 at Jamshedpur, is one of India's two largest steelmakers. UltraTech Cement, part of the Aditya Birla group through Grasim Industries, is India's largest cement producer, with plants and grinding units across the country and a capacity well ahead of its nearest rival.
Are Tata Steel and UltraTech Cement valued the same way?
Yes — both on discounted cash flow, so their workings compare like for like.
What does today's price assume for Tata Steel and UltraTech Cement?
Worked backwards from the share price, Tata Steel needs about 6% growth and UltraTech Cement about 19% growth, against 0% and 14% in their own records.