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The market asks roughly as much of Tata Steel as of Vedanta.
At current prices, buyers of Tata Steel are assuming about 6% growth against 0% in its own record; for Vedanta it is 5% against 0%. 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: Tata Steel is worth about 2.3 times Vedanta on the stock market.
- Record: On revenue the two have grown at much the same pace: Tata Steel compounded at about 7% a year (FY2018–FY2026) and Vedanta at about 7% (FY2018–FY2025).
- What to watch: indian margins at Tata Steel; commodity prices at Vedanta.
| Tata Steel | Vedanta | |
|---|---|---|
| Price | ₹187 | ₹260 |
| Market cap | ₹2.33L Cr | ₹1.02L Cr |
| P/E | 20.1 | 4.7 |
| P/B | 2.28 | 2.04 |
| 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.
A resources conglomerate
Vedanta, controlled by Anil Agarwal's UK-based Vedanta Resources, produces aluminium, zinc, silver, oil and gas, iron ore, copper and power. It owns a majority of Hindustan Zinc, one of the world's largest zinc miners, and Cairn India's oil fields in Rajasthan.
02The records side by side
On revenue the two have grown at much the same pace: Tata Steel compounded at about 7% a year (FY2018–FY2026) and Vedanta at about 7% (FY2018–FY2025). By revenue, Tata Steel is about 1.5 times the size of Vedanta. Tata Steel kept 4.7% of revenue as net profit in FY2026; Vedanta kept 13.4% of revenue as net profit in FY2025. Tata Steel reported a net loss in FY2024; Vedanta reported a net loss in FY2020.
Full ten-year tables and charts are on each company's page: Tata Steel · Vedanta.
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.
- Commodity pricesAluminium, zinc, silver and oil prices drive profit.
- Hindustan ZincIts dividends and value are a large part of Vedanta's worth.
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.
- Commodity downturnsFalling metal prices hit every business at once.
- Group leverageRefinancing pressure at the parent is a long-running concern.
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 Vedanta 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 Vedanta at 4.7 times earnings and 2.04 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 Vedanta?
Tata Steel, founded in 1907 at Jamshedpur, is one of India's two largest steelmakers. Vedanta, controlled by Anil Agarwal's UK-based Vedanta Resources, produces aluminium, zinc, silver, oil and gas, iron ore, copper and power.
Are Tata Steel and Vedanta 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 Vedanta?
Worked backwards from the share price, Tata Steel needs about 6% growth and Vedanta about 5% growth, against 0% and 0% in their own records.