Tata Steel Slides Over 3% After Q4 Net Profit Falls 64% YoY; Buy, Sell Or Hold? – News18

Tata Steel Stock Price: Shares of Tata Steel fell on Thursday, May 30, a day after the Tata Group steelmaker’s Q4 profit, and revenue missed Street expectations. Continuing the declining trend for the fifth day, the Tata Steel stock fell 3.18 per cent to the day’s low of Rs 168.7 on NSE in opening deals.

The company reported net profit of Rs 1,704.86 crore in the same quarter a year ago. Net profit shrinked as lower steel realisations and poor performance in the steelmaker’s international operations were accounted in the earnings.

Consolidated revenue from operations in Q4 fell 6.7 per cent to Rs 58,687.3 crore against Rs 62,961.5 crore recorded in the year-ago period, it said in a regulatory filing.

On a sequential basis, consolidated revenue from operations increased six percent from Rs 55,311.88 crore in the previous quarter and net profit rose 19 percent from the previous quarter.

Tata Steel stock ended 0.37 per cent lower at Rs 174.20 on BSE in the previous session. Tata Steel stock opened flat at Rs 174.85 on BSE. The market cap of the firm stood at Rs 2.17 lakh crore. A total of 14.27 lakh shares changed hands amounting to a turnover of Rs 24.92 crore on BSE.

Tata Steel stock has a one-year beta of 0.9, signaling low volatility during the period. In terms of technicals, the relative strength index (RSI) of Tata Steel stood at 65.1, signaling it’s trading neither in the overbought nor in the oversold zone. Tata Steel shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

Tata Steel shares have rallied 60.70 per cent in a year and risen 24.52 per cent in 2024.

Meanwhile, the company’s board cleared issue of additional debt securities, in one or more tranches, up to Rs 3,000 crore in the form of NCDs (Non-convertible debentures) on private placement basis.

Its board also cleared the proposal to infuse funds up to $2.11 billion (Rs 17,407.50 crore) into a wholly owned subsidiary T Steel Holdings (TSHP) Singapore, to repay debt and to support the restructuring costs at Tata Steel UK.

What Should Investors Do Now?

Jefferies has maintained a buy call on Tata Steel with a target of Rs 200 per share, implying an upside potential of nearly 15 per cent from the previous close.

According to Jefferies, Q4 net debt was flattish quarter-on-quarter (QoQ). The brokerage also stated the following points post-Q4 results in its note:

• The company plans to infuse $2.1 billion in an overseas holding company to repay existing debt at offshore entities
• The company plans to infuse $2.1 billion in an overseas holding company to support restructuring costs in the UKMorgan Stanley has retained an equal-weight rating on Tata Steel with a target of Rs 135 per share. According to Morgan Stanley, the beat on consolidated EBITDA was led by better-than-expected performance in domestic and overseas businesses. The brokerage also highlighted the following points:

Domestic: TSK Phase 2 expansion remains on track.

UK: Existing heavy assets are nearing their closure

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