Tata Stock in Focus: Tata Steel Share Price Jumps 13% In A Month! JPMorgan, Jefferies Say ‘BUY'-Invest Now?

Shares of Tata Steel have gained significant investor interest after major brokerage firms issued a 'Buy' rating on the metal stock. Tata Steel share price surged 1% intraday, continuing its strong momentum after rallying 13% in the past month. Analysts remain bullish on Tata Steel stock, citing optimism over China's economic recovery, rising domestic steel prices, and potential safeguard duties on steel imports. With global metal prices holding firm, experts predict further upside for Tata Steel shares in the near term.

Tata Steel Share Price Movements Today

Tata Steel's share price saw a slight uptick today, rising nearly 1% intraday. At the time of writing, Tata Steel stock was trading at Rs. 151.79, up 0.60%. Over the past few trading sessions, Tata Steel shares have shown mixed performance, gaining 1.37% in the last five days. Tata Steel's share price jumped by 13.04% over the past month and 1.40% in the past year.

The company currently holds a market capitalization of Rs. 1.89 lakh crore, with a P/E ratio of 69.21. Tata Steel's share price at a 52-week high range stands at Rs.184.60, while its 52-week low is Rs.122.62.

Tata Steel Share Price Target

Global brokerage firm Jefferies has issued a positive outlook on Tata Steel (TATA), Hindalco (HNDL), and JSW Steel (JSTL), highlighting that metal stocks have outperformed the Nifty 50 by 15-20% year-to-date (CYTD) as per its latest report. The report said, "The rally has been driven by China's economic recovery, expectations of safeguard duties on steel imports in India, and firm aluminum prices. Jefferies noted that Asian steel spreads remain 20% below the long-term average, leaving room for further expansion. Meanwhile, Indian steel prices have rebounded by 5% from December lows, and any potential safeguard duty could further boost margins and valuations."

Jefferies' report also pointed out. "India's domestic Hot Rolled Coil (HRC) steel prices dropped 15% from June to December but have since improved. Currently, Indian steel prices trade at a 3% premium to landed Chinese imports. Rising Chinese steel exports pose a risk to Indian manufacturers, but if India follows Vietnam and South Korea in imposing anti-dumping tariffs on Chinese steel, it could provide price support for domestic producers."

Jefferies has assigned a 'Buy' rating to Tata Steel, setting a target price of Rs. 180, implying a 19% upside from its current market price of Rs. 152.

In recent news, JPMorgan also raised its target price to Rs.180, maintaining an 'overweight' stance and a bullish outlook on the TATA steel stock.

Tata steel Q3 FY25 Financial Report

Tata Steel announced its financial results for the quarter that ended December 2024. The firm reported consolidated revenues of Rs.1,62,324 crore for the first nine months of the financial year, with EBITDA rising 14% year-on-year (YoY) to Rs.19,040 crore, with a strong EBITDA margin of 12%. For the October-December quarter, the company posted revenues of Rs. 53,648 crore and an EBITDA of Rs.5,994 crore, maintaining an EBITDA margin of around 11%. Capital expenditure stood at Rs.3,868 crore for the quarter and Rs.12,450 crore for April-December 2024. Tata Steel's net debt currently stands at Rs,85,800 crore, while group liquidity remains strong at Rs.28,219 crore, including Rs.13,119 crore in cash & cash equivalents.

About Tata Steel

Tata Steel, a part of the Tata Group, is one of the world's largest steel producers with a presence across India, Europe, and Southeast Asia. Founded in 1907, it was India's first integrated steel company and has since grown into a global powerhouse in the metal industry. The company operates state-of-the-art manufacturing facilities and is known for its commitment to sustainability, innovation, and efficiency in steel production.

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.