10:1 Split, 2.14% Yield: Buy Tata Stock Under Rs 180, TP Rs 200: ICICI Securities Upgrades

ICICI Securities has upgraded target price of Tata Steel from "Add" to "Buy" with fresh target price of Rs 200 now from Rs 150 earlier. Current market price of Tata Steel share on BSE is Rs 167.90 per share with intraday gain of 0.39% at the time of writing the story. Tata Steel shares witnessed rally of 3.42% in last 1-week and soared 59.60% in last 1-year span. The metal sector company has a market capitalisation of Rs 2,09,597.00 crore. It is worth mentioning here that Life Insurance Corporation of India (LIC) has an attractive 7.29% stake in Tata Steel with 90,97,67,778 shares.

ICICI Securities On Tata Steel: The brokerage firm believes domestic steel consumption to jump 2x to 210 mt (FY23 baseline) by FY32E. Among the leading steel firms, ICICI Securities believes JSW Steel and Tata Steel to reach 50 mtpa and 40 mtpa of domestic capacity, each by FY30E.

The analyst added that after 30 years, role of China in global steel consumption is likely to decline and India to account for bulk of steel consumption growth from CY20-25E. While China's steel consumption may progressively decline from peak levels of CY20 by 110-120 mt, in case of India it is expected to surge by 66 mt by CY25.
"As per our analysis, the link between steel prices of India and China has gone down post Covid-19 due to supply-chain issues, localisation of steel industry and strengthening domestic consumption in India as compared to decline in China."

Tata Steel Share Performance: The metal giant's 52-week high price on BSE is Rs 170.70 per share (as on 26/04/2024) and 52-week low price is Rs 104.10 per share (as on 19/05/2023), respectively. The ROE of Tata Steel is quoted at 3.48, PE at 46.77, and EPS (TTM) at 3.59. Tata Steel shares gained 18% in last 3-months period, offered shareholders return of 20% year-to-date, jumped 34% in last 6-months, and gained 42% in last 2-years. In last 5-years, Tata Steel shares offered eye-catching returns of 257%.

Tata Dividend History: Tata Steel offered highest ever dividend of Rs 51/share way back in 2022. The Tata Group metal stock announced 29 dividends since May 24, 2001. In the last 1-year span, Tata Steel declared an equity dividend amounting to Rs 3.60 per share. At the current market price of Rs 167.90, Tata Steel offers a dividend yield of 2.14%, according to Trendlyne.

Tata Steel Technical: Score is 60.93 indicating Tata Steel is technically moderately strong. Stocks with score between 60 and 70 are considered as technically moderately strong. RSI is 60.4, RSI below 30 is considered oversold and above 70 overbought. MFI is 50.7, MFI below 30 is considered oversold and above 70 overbought. FII/FPI have decreased holdings from 20.01% to 19.61% in Mar 2024 quarter. Number of FII/FPI investors increased from 1036 to 1043 in Mar 2024 quarter. Mutual Funds have increased holdings from 9.83% to 10.10% in Mar 2024 quarter. Number of MF schemes increased from 59 to 65 in Mar 2024 quarter, according to Trendlyne.

Tata Steel Bonus Share In Past: Tata Steel declared 1 bonus share since August 11, 2004. The metal stocks' last bonus was announced in the ratio 1:2 and ex-bonus date was set as August 11, 2004.

Tata Steel Stock Split History: Tata Steel split the face value once since July 28, 2022. Tata Steel split the face value of its shares from Rs 10 to Re 1 in 2022. Tata Steel share quoted on an ex-split as on July 28, 2022.

Tata Steel Financials: The large cap company for the quarter ended December 31, 2023 declared its consolidated net profit at Rs 522.14 crore from the net loss of Rs 2501.95 crore announced in the corresponding quarter of last year amid robust domestic demand offsetting weakness in Europe. Tata Steel announced a net loss of Rs 6511.16 crore for Q2 as a result of impairment charges. Tata Steels' consolidated revenue from operations for December 2023 quarter fell 3% to Rs 55,311.9 crore as compared to Rs 57,083.56 crore declared in the same quarter of preceding year. Sequentially, consolidated revenue from operations fell 0.7% from Rs 55,681.93 crore in the preceding quarter.

About: Tata Steel was established in India as Asia's first integrated private steel company in 1907. With this, italso developed India's first industrial city at Jamshedpur. Today, it is among the leading global steel companies. Its annual crude steel capacity across Indian operations is nearly 20 MnTPA and the company registered a turnover of INR 1,37,030 crore in FY23. It also 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, according to its official website.

Disclaimer:

The stock has been picked from the brokerage report of HDFC Securities and Choice Equity Broking. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.