Stock in Action - Tata Steel 30 August 2024

Stock in Action - Tata Steel 

Highlights

1. Tata Steel share price has shown significant movement in past few months.

2. Tata Steel stock target price set by ICICI Securities is up, reflecting potential growth.

3. Tata Steel investment outlook remains positive, supported by Moody's stable rating.

4. Tata Steel financial performance in latest quarter shows consolidated total income of ₹ 55,031.30 crore.

5. Tata Steel buy recommendation by major brokers highlights confidence in company's future.

6. Tata Steel EBITDA forecast is expected to reach ₹ 290 billion by fiscal year ending March 2025.

7. Tata Steel market cap 2024 stands at approximately ₹ 194,605.77 crore, reinforcing its large-cap status.

8. Tata Steel global operations are expanding, especially with new investments in its Singapore-based subsidiary.

9. Tata Steel dividend yield continues to be attractive feature for long-term investors.

10. Tata Steel acquisition strategy aims to strengthen its global presence & operational efficiency.

Why Tata Steel is in News?

Tata Steel Ltd., one of India's largest & most globally diversified steel producers, has been making headlines for multiple reasons. Recently, ICICI Securities issued buy call on Tata Steel with target price up, highlighting stock's potential. company's ongoing strategic investments, including significant stake acquisitions in its Singapore-based subsidiary, T Steel Holdings Pte Ltd, further underscore its commitment to expanding its global footprint & enhancing operational efficiency. Additionally, Tata Steel's recent financial performance, coupled with Moody's stable outlook on company, has drawn considerable attention from investors & analysts alike.

Company Business Overview

Tata Steel Ltd., incorporated in 1907, is Large Cap company with market capitalization of ₹194,605.77 Crore, operating in Metals - Ferrous sector. company’s key products & revenue segments include steel & steel products, power, & other operating revenues. With annual crude steel capacity of 35 million tonnes, Tata Steel is one of largest steel producers globally. company is also among most geographically diversified steel producers, with operations & commercial presence across world, including significant production bases in Jamshedpur, Jharkhand.
One of Tata Steel's notable advantages is its captive iron-ore mines, which provide company with cost efficiencies that are critical in competitive steel industry. group recorded consolidated turnover of $31 billion for financial year ending March 31, 2023, reinforcing its position as leading player in global steel market.
Tata Steel share performance has been closely watched by investors following recent acquisitions.

Broker Overview & Share Outlook on Tata Steel Ltd

ICICI Securities has issued buy call on Tata Steel, with high target price, citing stock's potential for growth. As of latest trading session, Tata Steel's share price stands at ₹156.45, indicating modest upside from current levels. company's financials reflect mixed performance, with consolidated total income of ₹55,031.30 Crore for quarter ended June 30, 2024, which is decrease of 6.51% from previous quarter & 9.29% from same quarter last year. Despite this decline, Tata Steel reported net profit after tax of ₹826.06 Crore for latest quarter, showcasing its resilience amid challenging market conditions. Tata Steel stock has gained attention due to its strategic moves in global markets.
Promoters hold 33.19% stake in company, while Foreign Institutional Investors (FIIs) own 19.68%, & Domestic Institutional Investors (DIIs) hold 23.24%. This strong institutional ownership reflects confidence in company's long-term prospects.

Moody's has maintained stable outlook on Tata Steel, projecting improvement in company’s earnings over next two financial years. rating agency expects Tata Steel's consolidated EBITDA to rise to ₹290 billion in FY25 & ₹380 billion in FY26, up from ₹241 billion in FY24. addition of 5 million tonnes per annum (mtpa) of production capacity at Kalinga Nagar in Odisha is expected to boost Tata Steel’s steel deliveries in India to around 23 million tonnes by FY26 from 20 million tonnes in previous fiscal year. Tata Steel share price is currently trading near ₹ 156.45, reflecting market sentiments.

In Europe, Tata Steel's operations are also expected to improve, with EBITDA turning positive by FY26, after losses in FY24 due to operational disruptions. Netherlands plant is expected to recover profitability following relining of its blast furnace, while losses at its UK operations are expected to recede after shutdown of its loss-making blast furnaces. Tata Steel stock price target set by ICICI Securities higher, indicating potential upside.

Conclusion

Tata Steel Ltd. remains prominent player in global steel industry, with strong domestic & international presence. Despite facing challenges such as new state taxes on mining activities in India & operational disruptions in Europe, company is well-positioned for growth, supported by strategic investments & expansions. buy calls from ICICI Securities & Moody’s stable outlook underscore confidence in Tata Steel's ability to navigate these challenges & deliver strong financial performance in coming years. Investors may find Tata Steel attractive investment, particularly with company’s ongoing efforts to enhance its operational efficiency & expand its global