Tata Stock Trading Below Rs 150 In Limelight, Reports Best Ever Deliveries In Q3; Do You Own?

Tata Steel, one of India's leading steel producers, has reported robust figures for the third quarter of the fiscal year 2024, showcasing impressive growth in both production and deliveries. The company's performance marks significant milestones, particularly in its Indian operations, while also shedding light on challenges faced in its international segments.

In the domestic market, Tata Steel India recorded a substantial increase in crude steel production, reaching 5.32 million tons in 3QFY24. This marked a 6% surge both quarter-on-quarter (QoQ) and year-on-year (YoY). For the 9-month period, the company sustained a 4% year-on-year increase in crude steel production.

Accompanying this production success were deliveries hitting an all-time high of 4.88 million tons. The noteworthy uptick of 3% QoQ and a significant 10% YoY rise in domestic deliveries were primarily fueled by the persistent strength in India's steel demand. This achievement has cemented Tata Steel India's best-ever deliveries for the 9-month period, exhibiting a 6% year-on-year surge.

Despite a marginal decline in vehicle production, Tata Steel witnessed an impressive 8% QoQ and a staggering 22% YoY increase in automotive & special products deliveries. Notably, the quarter saw the attainment of the "GreenPro Ecolabel" certification for its automotive flat steel products.

Tata Tiscon, Tata Steelium, and Tata Astrum brands led to an 11% YoY growth in branded products & retail deliveries. Tata Tiscon volumes specifically displayed a robust 10% QoQ and an impressive 18% YoY growth.

With a 5% QoQ and 6% YoY rise in deliveries, the industrial products & projects segment achieved its best-ever quarterly sales, with engineering sub-segments leading the charge.

The company's digital platform, Tata Steel Aashiyana, geared towards Individual Home Builders, recorded a stellar performance with revenues reaching Rs 572 crores in 3QFY24. This marked a remarkable 38% YoY increase, propelled by the platform's best-ever sales. Over the 9-month period, revenues exceeded Rs 1,600 crores, reflecting a substantial 13% YoY surge.

While Tata Steel Netherlands observed a 5% QoQ rise in liquid steel production and deliveries, Tata Steel UK faced operational challenges, leading to marginal decreases in both production and deliveries. The subdued demand dynamics impacted deliveries in the UK segment on both a QoQ and YoY basis.

Aditya Gaggar, Director of Progressive Shares, noted an optimistic technical outlook for Tata Steel Ltd, citing a breakout from an Inverted Head and Shoulder Formation and projecting a medium to long-term target of Rs 188 per share.

At the National Stock Exchange (NSE), Tata Steel's shares remained steady at Rs 133.60 per share compared to the previous closing. Over the last year, the stock has surged by nearly 16%, underscoring positive market sentiment.

Tata Steel's performance in the domestic market, bolstered by record deliveries and robust segment-wise growth, paints a promising picture for its fiscal year 2024. While international segments faced operational challenges, the company remains optimistic about leveraging its strengths and capitalizing on the ongoing demand in India's steel industry.