Tata Steel Ltd posted December quarter results and reported a 159 per cent YoY rise in the consolidated profits at Rs 9,573 crore for the quarter ended December 31, 2021.Brokerage firms have maintained their rating on this stock after a robust earnings.    

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

It had posted a consolidated profit of Rs 3,697 in the corresponding quarter last year. The company's revenue from operations grew 45 per cent YoY to Rs 60,783 crore against Rs 41,935 crore posted last year.

See Zee Business Live TV Streaming Below:

The most aggressive target price of Rs 2000 was put out by Investec post Q3 results that translate into an upside of about 70 per cent from Rs 1176 recorded on 4 February.

The stock has been on buyers’ radar for the past 12 months. Tata Steel rallied by about 80 per cent in the last year compared to 17 per cent gain seen in the Nifty50 in the same period.

Tata Steel with a market capitalization of Rs 1.4 lakh cr hit a fresh 52-week high of Rs 1534 on 16 August 2021 and then the stock traded sideways.

If the momentum continues the stock is on track to hit fresh 52-week highs in next 12 months. It rallied 8 per cent last week in the run-up to results.

EBITDA stood at Rs 15,893 crore, up 66 per cent against Rs 9568 crore posted in December 2020 quarter. Margin improved to 26% in Q3FY22 against 23% posted in Q3FY21.

The Net debt/EBITDA is now below 1x. The merger of Tata steel BSL was completed. The company has reported a strong performance in Europe.

We have collated a list of recommendations from various global brokerage firms according to a Zee Business TV report:

Investec: Buy| Target Rs 2000

Investec maintained a buy rating on Tata Steel post Q3 results with a target price of Rs 2000 that translates into an upside of about 70 per cent from Rs 1176 recorded on 4 February.

Tata Steel reported in-line performance, and capital allocation on TSE to be watched for. The company expects -  
a) Indian steel prices to remain resilient
b) European prices should remain steady
c) uncertain outlook on coking coal d) improving demand in EU/India

JPMorgan: Overweight| Target Rs 1850

JPMorgan maintained overweight rating on Tata Steel post December quarter results with a target price of Rs 1850 that translates into an upside of over 57 per cent from Rs 1176 recorded on 4 February.

The 3Q beat was a strong underlying quarter with a large net debt reduction which is a positive sign.
 
While markets appear to be expecting a sharp steel price correction, but steel prices continued to move higher.

CLSA: Buy| Target Rs 1820

CLSA maintained a buy rating on Tata Steel post December quarter results with a target price of Rs 1820 that translates into an upside of over 54 per cent from Rs 1176 recorded on 4 February.

The 3Q Ebitda was largely in line. India profitability surprised positively, buy Europe profitability got impacted by higher energy costs.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)