1:10 Split, 1:2 Bonus, 2.36% Yield: Tata Group's 116-Year-Old Steel Giant To Issue NCDs; BUY For Rs 170 TP

Tata Group-backed steelmaker, Tata Steel is in focus on Tuesday as its board of directors is set to meet today to consider issuance of non-convertible debentures. Also, the company has updated that it will cease its operations of Coke ovens at the Port Talbot plant, in Wales. Metal stocks have been in focus as HRC prices have continued to drop, while on the contrary, stainless steel prices have surged.

Tata Steel Share Price:

On BSE, at the time of writing, Tata Steel traded at Rs 148.70 apiece, down by 0.60% with a market cap of Rs 1,86,190.55 crore. The stock traded in the range of Rs 152.55 to Rs 147.65 apiece during Tuesday's trade.

The stock is still closer to its 52-week high of Rs 159.50 apiece. While its 52-week low is at Rs 101.65 apiece.

Tata Steel NCDs:

In its regulatory filing, Tata Steel said that the company's committee of directors meeting will be held on Tuesday, March 19, 2024, inter-alia, to consider and approve the issuance of unsecured Non-Convertible Debentures on a private placement basis, within the limits approved by the Board.

Tata Steel UK Business Update:

It also said on Monday that Tata Steel UK has decided to cease operations of the Coke Ovens at the Port Talbot plant, in Wales, following a deterioration of operational stability. Tata Steel UK will increase imports of coke to offset the impact of the coke oven closures.

As per the statement, Tata Steel had previously stated that many of its heavy-end assets in Port Talbot are at their end-of-life capability. Tata Steel is currently at an advanced stage of consultations with trade unions in the UK on its proposal for the planned restructuring involving the closure of the iron and steelmaking assets at Port Talbot, and subsequent transition to sustainable low-CO2 steelmaking involving a £1.25 billion investment in Electric Arc Furnace technology in Port Talbot and asset upgrades.

Tata Steel Corporate Affairs:

Tata Steel is among the dividend-paying metal stocks. As per Trendlyne data, the company delivered up to 29 dividends since May 2001. In the last 12 months, the company paid up to Rs 3.60 per share dividend. On the current market price, it has a dividend yield of 2.4%.

So far, Tata Steel has also carried 1 bonus issue and stock split. It turned ex-bonus in August 2004 for its bonus shares in the ratio of 1:2. While it turned ex-split recently in July 2022 for shares sub-division in the ratio of 1:10, which led to its face value reduction from Rs 10 to Rs 1.

Tata Steel Share Price Target:

Currently, the highest target price for Tata Steel is set at Rs 170.

At latest to recommend BUY is JP Morgan. The global brokerage has maintained an overweight on the company for a target price of Rs 170/share. The outlook is positive.

Apart from this, brokerage FISDOM had earlier selected Tata Steel among the top picks to benefit during the election period. Fisdom's long target is Rs 170, while its first target of Rs 155 apiece has been achieved by Tata Steel.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.