Global Brokerage Credit Suisse Maintains Neutral Rating On This Tata Stock: Key Takeaways

Global brokerage firm Credit Suisse has maintained neutral rating on Tata Group Stock Tata Steel Ltd. The leading global investment bank opines that the existing resilience in the domestic steel prices is unlikely to sustain. It decides to remain watchful on the steel sector in India.

According to Credit Suisse, future spreads are likely to revert to the historical average. It sees a risk to regional prices with weak China property.

Tata Steel Ltd Stock Performance

The current market price of the stock is Rs 106.80 apiece with a decline of 0.70% till 10:48 am today. The stock fell 4.50 on August 22, 2022. It gained nearly 2% the following day. Today the stock has fallen again.

Tata Steel Ltd Performance In Last 5 Years

The stock has fallen 5.33% in 1 week and 24% in 1 year. However, it has registered gain of 13% in 1 month, 5% in 3 months, 208% in 3 years, and 66% in 5 years.

Tata Steel Ltd 52-Week High/Low

The stock has surged to 147.67 when it comes to its 52-week high and declined to 82.71 apiece in 52-week low.

Tata Steel Ltd Market capitalization

The market capitalization of the stock is Rs 1,30,421.54 crore.

Tata Steel Ltd EPS

The stock has registered a strong annual EPS growth. The TTM EPS is 31.94 and TTM PE is 3.34 while sector PE is 5.35.

What Leading Brokers Are Saying About Tata Steel?

ICICI Direct has assigned buy rating in its 11th August report with a target price of Rs 130. Meanwhile BOB Capital in its 3 weeks back report assigned buy rating to the stock with a target price of Rs 140 apiece.

Steel Prices Witnessing Decline

As steel prices decline may impact the company, it is important to note that cooking coal prices too have fallen. Global steel prices have moderated in the April - June period on slowdown in global growth and regulation. Cooking coal prices have dipped by nearly 40% from $530/t levels in April to around $300/t by end June, but continue to remain volatile. So, margins could sustain if cooking coal prices continue to witness a fall.

About Tata Steel Ltd

Tata Steel came into existence in India in 1907 as Asia's first integrated private steel company. It also established India's first industrial city at Jamshedpur. Today, it is among the leading global steel companies.

The company 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.

Disclaimer

The stock has been picked from the brokerage reports of Credit Suisse, ICICI Direct, and Bob Capital. 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.