After Falling Over 4% Yesterday Tata Group Stock Bounces Back Today: Key Takeaways

Tata Group Stock Tata Steel Ltd yesterday witnessed a fall of 4.50% in trading. However, today the stock has bounced back and gained 2.05% till 11:30 am. The market capitalization of the stock is Rs 1,30,604.72 crore. It is worth noting that Tata Steel came into existence in India in 1907 as Asia's first integrated private steel company. It also established India's first industrial city at Jamshedpur.

Today, it is among the leading global steel companies. Check key takeaways below:

Tata Steel Ltd Stock Outlook

The current market price of the stock is Rs 107.20. The stock has gained 2.05% till 11:33 am today.

Tata Steel Ltd Return

The stock has given a return of 13% in 1 month, 206% in 3 years, and 66% in 5 years. It has fallen 22% in 1 year.

Tata Steel Ltd 52 Week High/Low

The 52-week high of the stock is Rs 147 apiece and 52-week low is Rs 82 apiece, respectively.

Tata Steel Ltd Market Capitalization

It has a market capitalization of Rs 1,30,421.54 crore.

Tata Steel Ltd Financial Performance

The company reported a consolidated EBITDA of Rs 15,047 crores for the quarter ending June 30, 2022. On QoQ basis, EBITDA margin improved to 24% while EBITDA per ton increased by Rs 3,780 to Rs 22,717. The Consolidated Profit after tax stood at Rs.7,714 crores.

Tata Steel Ltd Encouraging Decline In Net Debt

The instability in commodity prices and immediate impact of the export duty in India have led to an surge in working capital but our cost improvement and other initiatives along with expected pickup in demand in the second half of the year should result in normalisation of working capital. In spite of significant working capital pressures, the net debt stood at Rs 54,504 crores and Tata Steel's financial metrics continue to remain strong with Net debt to EBITDA "We remain committed to our annual deleveraging target of $1 billion in line with our capital allocation strategy to reduce our debt," Koushik Chatterjee, Executive Director and Chief Financial Officer of Tata Steel said recently.

Steel Prices Witnessing Decline

While steel prices decline may impact the company, it is important to note that coking coal prices too have declined. Global steel prices have moderated in the April - June period on slowdown in global growth and regulation.

Cooking coal prices have declined by around 40% from $530/t levels in April to around $300/t by end June, but continue to remain volatile. So, margins could sustain if coking coal prices continue to see a decline.

About Tata Steel

The company set up its second greenfield steel plant of 3 MnTPA in the eastern state of Odisha in 2016; the expansion to 8 MnTPA in currently underway. It possesses and operates captive mines that help it maintain cost- competitiveness and production efficiencies through an uninterrupted supply of raw material. 

This is how it ensures that it remains the lowest cost producer of steel in Asia. The Indian product portfolio is divided into four segments - Automotive and Special Products; Industrial Products, Projects and Exports; Branded Products and Retail; and Services and Solutions. The Company supplies hot-rolled, cold-rolled, galvanised, branded solution offerings and more.