Tata Steel stock split latest news: Scrip trades ex-split, up around 6.5% - good time to Buy? Experts' opinion

Tata Steel stock split latest news: Tata Steel share price zoomed by nearly 6.5 per cent to Rs 102.5 per share on the BSE intraday as the stock is trading ex-split on Thursday. The counter is one of the top Nifty50 gainers and also aiding the Nifty Metal index to surge over 2 per cent today. 

The company has fixed July 29 as the record date for the stock split it had announced in May in the ratio of 1:10.

Earlier this week, Tata Steel in Q1FY23, posted a consolidated profit of Rs 7,764.96 crore, down by nearly 13 per cent year-on-year (YoY) and 20.4 per cent quarter-on-quarter (QoQ), the consolidated revenue stood at Rs 63,430 crores up by 18.6 per cent YoY but down by 8.5 per cent QoQ. 

The stock at around 12:00 PM was trading over 4 per cent higher to Rs 100.15 per share on the BSE as compared to a 1.5 per cent rise in the BSE Sensex at the same time. 

We have collated views from different experts on Tata Steel ex-split: 

Expert: Manoj Dalmia, founder, and director, Proficient equities Private Limited 

In India, the company's deliveries were marginally lower due to a reduction in exports due to various policies, while business in the European market shined. We recommend buy rating as due to the split the stock might appear cheaper and there can be some buying  

Expert: Ravi Singhal, CEO, GCL 

Tata Steel's outlook seems dimly amid lower steel prices narrowly offset by lower coking coal cost and higher volume. The company’s profitability is expected to decline due to lower prices and sluggish demand. Investors may wait to enter fresh long positions in the stock at current levels. The value buying seems to trigger around Rs 85 - 80 levels for a long-term perspective. 

Expert: Punit Patni, Equity Research Analyst, Swastika Investmart Ltd 

We have a neutral view on Tata Steel from a short to medium-term perspective as the normalization of profitability has commenced due to the steel prices witnessing a cool-off. 

The subdued global demand because of the rate hike regime by the global central banks, and the export duty imposed by the government will create a supply glut in the domestic markets. 

However, long-term investors with moderate to high-risk appetite can accumulate the stock on dips as the demand outlook remains positive in the long term and Indian steel makers are expected to gain due to the curtailment of steel production by China and their competitive advantage in terms of low iron ore and labor costs. 

Expert: Kush Ghodasara, Independent Market Expert

After ex-split today, Tata Steel share price is attractive to accumulate. The stock had risen almost 100% last calendar year on rising commodity prices, but we witnessed 50% correction from life high in the last two months. Steel prices have corrected 20% from a high of around 86/kg to 69/kg recently.

So maybe the top line would be affected in the next 2 quarters. But on other hand, home sales have risen in metro cities which could offset the price softening of steel. To sum up, the stock is at attractive levels to accumulate for 6-8 months of investment.

Expert: Avinash Gorakshakar, Head Research, Profitmart Securities

Tata Steel has reported good earnings in Q1 FY23 largest on the back of strong European markets although domestic markets realizations were weak. We expect that Q2 numbers would be crucial and any weakness in the European market could spring a negative surprise.

Hence, we suggest a hold and would prefer to wait for more management clarity on European steel demand going ahead.