Tata Steel, a steelmaker heavyweight under the umbrella of Tata Group, has witnessed a sharp bearish trend in January 2025. Out of 11 trading sessions so far in January, Tata Steel's stock price stood negative seven times, falling by 7.5% as of January 15. The majority of consensus on Tata Steel is BUY, however, Geojit is the latest to recommend HOLD on Tata Steel.
Tata Steel Share Price:
Tata Steel's share price stood at Rs 126.55 apiece on BSE, down by 0.4% with a market cap of Rs 1,57,977.97 crore. This will be the seventh session where Tata Steel closed in red. From January 1st to 15th, there have been eleven trading sessions so far.
The steel giant was in red in seven of them. The worst selloff was seen on January 6th when Tata Steel stock was down by 4.41%, followed by January 13th where it dipped by 3.5%, and January 9th when it plunged by 2.07%. Tata Steel was also in red on January 10, January 8, and January 1st.
From 1-15th of the current month, Tata Steel has nosedived by 7.5% on BSE. From its 52-week high of Rs 184.60 apiece, Tata Steel's stock price was down by 31.4% currently. While Tata Steel is near its 52-week low of Rs 122.60 apiece. That being said, Tata Steel stock is just Rs 3.95 away from its 1 year low.
As per BSE data, Tata Steel's price-to-equity ratio is at 10.11x, while its return on equity is at 10.99%.
Tata Steel BUY/HOLD:
As per Trendlyne data, the consensus recommendation from 30 analysts for Tata Steel Ltd. is BUY. Of the total, 11 analysts suggested 'Strong BUY' and 5 analysts recommended 'BUY'. EPS is expected to grow by 239.0% in FY25. The average 1-year target price on Tata Steel is at Rs 160.73, hinting at over 27% potential upside ahead.
The latest recommendation is done by Geojit.
In its latest note, Geojit said, "Tata Steel's operations in India are poised to gain from strong domestic demand and increased output from the recently launched Kalinganagar phase-II (KPO-II) facility in Odisha. Additionally, steel prices are expected to have bottomed, while China's stimulus initiatives are likely to positively impact the steel industry and elevate steel prices. Furthermore, the transition in the UK and the commencement of new projects, such as the NINL (Neelachal Ispat Nigam Limited) expansion, serve as significant catalysts for the company's performance. Therefore, we reiterate our HOLD rating on the stock, with a revised target price of Rs. 153 based on the SOTP valuation."
Geojit's target price signalled a nearly 21% potential upside from CMP.
Tata Steel is a leading global steel manufacturer. It operates in more than 26 countries, with key operations in India, the Netherlands and the UK. The company serves customers in the automotive, construction, engineering, energy and power sectors.
Tata Steel has given a hefty dividend since its split for the first time in 2022.
Stock Split: The stock split for the first time in July 2022, in the ratio of 1:10, where its face value was adjusted from Rs 10 to Rs 1.
Dividends: The company has delivered three final dividends since its first split. The highest dividend payout was Rs 51 per share in 2022, while Tata Steel delivered Rs 3.60 per share dividend each in 2023 and 2024. Since May 2001, the company has paid up to 30 dividends, as per Trendlyne data. The company has a dividend yield of 2.85% at present.
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