Tata Steel quarterly results impact: Stock turns choppy after initial gains; brokerage recommends this
The brokerage has maintained a Reduce rating given the current scenario for metals and kept the price target unchanged at Rs 827 apiece which also happens to be its current 52-week low.
Tata Steel quarterly results, Tata Steel share price: Shares of Tata Steel on Tuesday gained nearly 1.5 per cent to Rs 974 per share on the BSE intraday on Tuesday a day after the company reported a 21% fall in its consolidated net profit for the April-June quarter of the financial year 2022-23 (Q1FY23).
ICICI Securities in its review report said that Tata Steel's consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) registered a surprise number on the back of strong Tata Steel Europe EBITDA, which expanded to US$365/te with support from contract realisations, favourable raw material movement and lower energy costs.
The brokerage has maintained a Reduce rating given the current scenario for metals and kept the price target unchanged at Rs 827 apiece which also happens to be its current 52-week low.
At around 02:40 PM, the counter was trading flat with the negative bias of Rs 957 per share on the BSE as against 0.69 per cent fall in the S&P BSE Sensex. The scrip has gained over 10 per cent in the last one month as against over 4 per cent gain in the benchmark index during same period.
The counter has touched its 52-week high a year ago on August 16, 2021, at Rs 1534.6 per share and 52-week low on June 23, 2022 at Rs 827.1 per share on the BSE.
Tata Steel on Monday posted a 21 per cent fall in its consolidated net profit to Rs 7,714 crore for the April-June quarter due to higher costs of materials and finance costs, the company said in regulatory filing. The steel major had reported a net profit of Rs 9,768 crore in the same period of 2021-22.
The board of Tata Steel had on May 3 considered a proposal to split the stock in the 1:10 ratio, which means that every shareholder will get 10 shares for every single holding. It has fixed July 29, 2022 as the record date to determine shareholders’ eligibility for shares split having a face value Rs 10 each.
Tata Steel is among the country's top four steel producers and contributes around 18 per cent to the total domestic steel production.
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