1:10 Split, 1:2 Bonus, 27 Dividends: Is This Best Tata Stock? Advised To BUY For Rs 170 Target Price

Tata Group-backed stocks have made sharp recovery over the past month, with some of them recording double-digit gains up to 20%. Notably, there is one stock of Tata that is in green year-to-date, irrespective of market volatility. The stock is affordable and nearly Rs 160. It has gained by a whopping 16.3% in 2025 so far. This week, this Tata stock also emerged among the top technical picks of brokerage SMC Global Securities.

This will be none other than India's largest steel company in terms of m-cap, Tata Steel Ltd.

Tata Steel Share Price:

The heavyweight steel stock closed at Rs 159 apiece on BSE, after market hours of March 20, marginally up. Its market cap is currently at Rs 1,98,486.74 crore. The stock's 52-week high and low is at Rs 184.60 apiece and Rs 122.60 apiece respectively.

Tata Steel's weekly performance is up by 4.3%, while year-to-date, the share surged by a whopping 16.27%.

Tata Steel has given a hefty dividend along with bonus issue and was split only once.

Stock Split: The company carried its stock split in 2022, in the ratio of 1:10. Since July 28, 2022, the face value of Rs 10 in Tata Steel has been sub-divided to Re 1 each.

Bonus Issue: The company has also given bonus share only once and that was in 2004. Its first bonus share was in the ratio of 1:2 with ex-date on August 12 of 2004.

Dividends: The company holds a strong record dividend payout to the tune of 27 since June 2003, as per Trendlyne data. In the last 12 months, the company delivered dividend of about Rs 3.60 per share. Currently, it has a dividend yield of 2.26%.

In 9MFY25, the company posted consolidated revenue of Rs 1,62,324 crores. EBITDA improved by 14% YoY to Rs 19,040 crores, with an EBITDA margin of 12%. The company has spent Rs 3,868 crores on capital expenditure during the quarter and Rs 12,450 crores between April - December 2024. While its group liquidity remains strong at Rs 28,219 crores, which includes cash & cash equivalents of Rs 13,119 crores.

BUY Tata Steel Stock

As per SMC Global Securities On Tata Steel, the 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at 145. Recently, the stock took support at its 200 days exponential moving average on weekly interval and recovered with a decent bounce into the prices.

At the current stage, SMC's note said, the stock can be seen holding well above its 200 days exponential moving average on daily charts with recovery seen within formation of higher bottom pattern. Technically, the stock has given a breakout above the falling trend line of declining channel on broader charts. The breakout got supported with rising volumes that points towards strength in the recovery.

Therefore, one can accumulate a stock on dips in range of 148-150 for the expected upside of 169-170 levels with S/L below 135 levels, SMC's note added. Here are some key fundamentals of Tata Steel stock, as per Trendlyne data:

- Price to Earning Ratio is 72.69, higher than its sector PE ratio of 18.2.

- Stock Price rose 6.92% and underperformed its sector by 22.08% in the past year.

- Debt to Equity Ratio of 0.89 is less than 1 and healthy. This implies that its assets are financed mainly through equity.

- Return on Equity(ROE) for the last financial year was -4.82%, less than 10%, indicating an inefficient use of shareholder's capital to generate profit.

- Mutual Fund Holding increased by 1.07% in the last quarter to 11.69.

- Promoter Share Holding stayed the same in the most recent quarter at 33.19%.

- Interest Coverage Ratio is 3.21, higher than 1.5. This means that it is able to meet its interest payments comfortably with its earnings (EBIT).

- Promoter Pledges are zero.