BOB Capital Reiterate Buy Call On This Tata Stock, Assigns Target Price Rs 155

A renowned brokerage firm BoB Capital Markets in its latest report has assigned a "Buy" on Tata Steel Ltd. with a target price of Rs 155 per share factoring in potential benefits from the UK transition. Tata Steel is Tata Group's metal sector large-cap company.

"TATA has secured a 40% capex grant from the UK government to decarbonise operations by transitioning from a 3.5mt BF to a 3mt EAF, in line with the regional emission mandate," the brokerage firm stated.

It added, "The company aims to secure buy-in from the workers' unions over the next three months by convincing them of its intent to retain 5,000 of ~8,000 jobs. TATA plans to share estimates of restructuring costs during its Q2FY24 earnings call in October."

Reiterate BUY

BoB Capital Market said, "We raise our SOTP-based TP to Rs 155 (from Rs 145) as we hike our FY26E EV/EBITDA multiple for European operations to 5.5x (from 4.5x), keep Indian operations at 6x and add in Rs 6/sh for the TSUK transition. We remain confident of TATA's ability to deliver earnings-accretive growth and maintain BUY."

Stock Outlook

Tata Steel shares on Wednesday last traded 0.54% lower at Rs 128.15 per share on the BSE with the day's highs and lows of Rs 128.95 and Rs 126.70, respectively. The stock surges 9.62% in 1 month, and 25.27% in 6 months, respectively. It gained 31.30% in 1 year, while in 3 and 5 years, it gained 264.17% and 110.12%, respectively.

The stock touched a 52-week high at Rs 134.85 per share and a 52-week low is Rs 95 per share on the BSE. Tata Steel has a market cap of Rs 1,56,598.12 Crore.

Disclaimer - The stock has been picked from the brokerage report of BoB Capital Markets. 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 consult with certified experts before making any investment decision.