Despite the weak performance of the Tata Steel and Metal index, the brokerages are bullish on the stock, giving a buy recommendation for the stock, as international business and annual report show improvement in the growth going forward. 

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Tata Steel shares declined second-most at open near two and a half per cent, however, it has been recovering and trading almost one per cent higher at Rs 1126.05 apiece, as compared to Nifty Metal Index down by around a half per cent at around 10:10 am today. 

In a volatile trade, the shares of this steel major have been trading flat by negative, as compared to near three per cent fall of Nifty Metal index in the last five sessions. Similarly, in the past month, the stock has declined by near two and a half per cent versus marginal decline in the Nifty Metal index. 

CLSA maintains a buy rating on Tata Steel with an expectation of Europe being self-sufficient in cashflows in the near term. It said the company’s focus is on cash generation, cost savings and growth, adding further, rising carbon costs are a medium-term risk. The brokerage sets a target of Rs 1362 per share on the back of a stronger balance sheet and improving returns. 

Similarly, Jefferies also has a buy call on Tata Steel with a target of Rs 1,500 per share. It says, FY21 annual report shows a rising focus on sustainability and sets out specific targets for 2025/2030.  

The brokerage firm says the company’s India capacity expansion is a key strategic focus, while it is working on separating the UK and Netherlands business.  

Metal stocks continued to be under pressure since yesterday and were the reasons for the benchmark indices decline. The other metal stocks that are under pressure today are HindZinc, Adani Enterprises among others.

(Authored by Vaibhav Bansode)