Shares of Tata Steel gained up to 2% on Thursday, August 1, following the company’s first-quarter results that surpassed expectations. Tata Steel reported a consolidated EBITDA of Rs 6,694.4 crore, exceeding the street’s estimate of Rs 6,320 crore.
Brokerages on Tata Steel
JP Morgan on Tata Steel
JPMorgan has maintained its ‘Overweight’ rating on Tata Steel, setting a target price of ₹190 per share. The bank noted that Tata Steel’s Q1 EBITDA performance exceeded expectations and was slightly better than the overall India and Europe performance.
JPMorgan did not see any negative aspects in the Q1 results but highlighted a 6% increase in net debt quarter-on-quarter. The bank emphasized that management’s comments on debt reduction will be crucial for future improvements. JPMorgan also stated that it does not anticipate major revisions to consensus estimates.
Jefferies on Tata Steel
Jefferies has reiterated its ‘Buy’ recommendation for Tata Steel, setting a target price of Rs 195 per share. According to Jefferies’ report, Tata Steel’s Q1 EBITDA increased by 29% year-on-year and 1% quarter-on-quarter, surpassing estimates by 7%.
The growth in EBITDA was driven by better-than-expected performance from non-TSE subsidiaries. In Europe, the Netherlands operations reported a positive EBITDA for the first time in six quarters, while the UK business continued to experience EBITDA losses.
CLSA on Tata Steel
Global brokerage firm CLSA has kept its ‘Underperform’ rating on Tata Steel, setting a price target of Rs 135 per share. CLSA noted that the Supreme Court ruling allowing states to impose additional taxes could weigh negatively on the stock, presenting a potential overhang.
Stock Performance in Last One Year
In terms of stock performance, Tata Steel has experienced mixed results. Over the past month, the stock posted a negative return of 7.51%. In contrast, over the past six months, the stock delivered positive returns of 19.41%, indicating a period of uptrend.
Year-to-date figures also remain positive, showing a gain of 15.15%. Moreover, over the last twelve months, the stock achieved a return of 30.66%, highlighting its resilience over the longer term.
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