1:10 Split, 1:2 Bonus, 28 Dividends: Tata's Steel Stock Is Rs 4.15 Away From 1-Year High; BUY/SELL In January?

Tata Group-backed steelmaker Tata Steel's share price surged by over 6.5% on BSE during the trading week from December 29th to January 2nd. The steel giant is now less than Rs 5 away from hitting its 52-week high. Notably, metals and mining stocks are in focus after the Finance Ministry announced the extension of safeguard duties (SGD) till April 2028. This was widely expected after the provisional duties expired in November last year. Amidst this, should you buy Tata Steel stock?

Tata Steel Share Price:

After the closing bell on January 2nd, Tata Steel stock ended at Rs 182.85 apiece, up by 0.6% on BSE with a market cap of Rs 2,28,259.75 crore. From this price level, the large-cap metal is away by Rs 4.15 from 52-week high of Rs 187 apiece. Overall in the trading week from December 29 to January 2nd, the stock ended higher by 6.53%. In the past month, Tata Steel stock are up by over 9%, and in six months, the gains are over 10%.

Metal Sector: Safeguard Duties

As per analysts at Kotak Institutional Equities, the SGD raises the price/margin floor for domestic steel producers for three years. The weak export market and near-term supply pressure in the domestic market should keep steel prices in discount to import parity. Domestic HRC prices, after the recent hikes (+9%), are ~6% lower versus the import parity level.

The Centre has announced the extension of safeguard duties (SGD) until April 2028, which was widely anticipated after provisional duties expired on November 7, 2025, ending policy uncertainty. The notified safeguard duties on certain imported flat products are set at 12%/11.5%/11% for FY2026/27/28, in line with DGTR recommendations.

Analysts explained that the improvement in steel prices after the extension of SGD until April 2028 should drive margin expansion from 4QFY26E. However, this will be partially offset by higher coking coal prices, which are +19% higher in the past three months.

Accordingly, they said, "We remain constructive on steel producers, given structurally growing demand, high utilization with limited capacity additions, a consolidated market and a supportive policy regime. We do not expect a full pass-through of 12% SGD in domestic steel prices on headwinds from the export market and transient supply pressures."

Should You Buy Tata Steel Stock?

After the SGD extension, Kotak analysts are bearish on Tata Steel stock. They have recommended SELL with a target price of Rs 145 as they prefer Jindal Steel and JSW Steel over Tata Steel.

However, the consensus recommendation from 32 analysts for Tata Steel is BUY, as per Trendlyne data. Of the total, 12 analysts have suggested STRONG BUY and six analysts have recommended BUY. The average target price is of Rs 185.70 apiece. But many brokerages like ICICI Direct and Motilal Oswal have recommended BUY for a target price of Rs 210.

Tata Steel Corporate Actions:

The first time Tata Steel rewarded investors with a bonus issue was in August 2004 in the ratio of 1:2. This meant the company has rewarded 1 bonus on 2 existing shares.

Tata Steel Bonus Issue:

The first time Tata Steel rewarded investors with a bonus issue was in August 2004 in the ratio of 1:2. This meant the company has rewarded 1 bonus on 2 existing shares.

Tata Steel Stock Split:

The Tata Group stock has split only once in its history. The first stock split was of 1:10 ratio with effect from July 28, 2022, where face value was trimmed from Rs 10 each to Re 1 each.

Tata Steel Dividend:

Since June 2003, the company has delivered 28 dividends, as per Trendlyne data. In the past 12 months, the metal giant delivered up to Rs 3.60 per share dividend. At the current market price, the dividend yield is at 2%.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.