ICICI Direct Assigns Buy Rating to Tata Steel For Target Price Of Rs 125, Target Time 3 Months

Leading brokerage firm ICICI Direct has given buy rating to the stock of Tata Steel Ltd for a target price of Rs 125 and the target time is 3 months. The market capitalization of the stock is Rs 1,31,398.48 crore at the time of writing the report.

Tata Steel Ltd Stock Outlook

The current market price of the stock is Rs 107 apiece on BSE with a decline of 0.14% intraday. According to ICICI Direct, if investors buy the stock of Tata Steel Ltd at its current market price, it has the potential to reach Rs 125 apiece with a potential gain of 17% in a time period of 3 months.

Tata Steel Ltd Strenghts/Weaknesses

The company has registered strong annual EPS growth and effectively using its capital to generate profit. RoCE is improving in the last two years. The company is also effectively using shareholders fund - Return on equity (ROE) improving since last 2 year. When it comes to weaknesses, MFs decreased their shareholding last quarter and there is decline in Net Profit with falling Profit Margin (QoQ).

Tata Steel Ltd 52 Week High/Low

The stock's 52-week high is recorded at Rs 147 apiece and the 52-week low is registered at Rs 82 apiece, respectively.

Tata Steel Ltd Market Capitalization

The company has a market capitalization of Rs 1,31,398.48 crore.

Tata Steel Ltd Q1FY23 Result

The company announced a consolidated EBITDA of Rs 15,047 crores. On QoQ basis, EBITDA margin improved to 24% while EBITDA per ton increased by Rs 3,780 to Rs 22,717. The company reported a consolidated total income of rs 63698.15 crore, down 8.50 % from last quarter total income of rs 69615.70 crore.

It reported a consolidated Profit after tax stood at Rs.7,714 crores. Net debt of the company stood at Rs.54,504 crores. 

T V Narendran, Chief Executive Officer & Managing Director of Tata Steel said, "This has been a challenging quarter for the Global and Indian economy with rising interest rates, supply chain constraints and slowdown in China due to COVID. Despite these multiple headwinds, Tata Steel has delivered a strong performance with an improvement in margins. Our strong marketing franchise and superior business model in India enabled us to successfully pivot and increase our domestic deliveries to counter the 15% duty imposed on steel exports in the middle of the quarter."

Tata Steel Ltd Stock Split

Earlier this year on July 28, Tata Steel approved a proposal to split its shares in 10-to-1 ratio as the steel major posted 47% rise in consolidated net profit for the three months ended March.

The stock split in the ratio of 1:10 awarded 10 shares in the hands of shareholders for each share they owned. 

Tata Steel Ltd About

The company is engaged in the Steel sector. It was founded in 1907 in India as Asia's first integrated private steel company. The company was formerly known as Tata Iron and Steel Company Limited and is a subsidiary of the Tata Group. The company boasts about being the world's second-most geographically-diversified steel producer, and it operates in 26 countries around the world. Tata Steel Limited is an Indian global steel-making firm located in Jamshedpur, Jharkhand. It is headquartered in Mumbai, Maharashtra, India.

Disclaimer

The stock has been picked from the brokerage report of ICICI Direct. 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.