Shares of Tata Steel have slowed down in the last three years. The Tata Group stock, which rose 312% in five years, fell 1.56% in three years, disappointing long-term investors during the period. The one-year and two-year returns of 29% and 32% from Tata Steel offered some relief to investors. However, the Tata Group stock could not deliver returns in the short term. The stock is down 10.48% in a month and fallen 9.86% in three months.
Amid the ongoing correction, the Tata Group stock has slipped 19% from its record high. The Tata Group stock hit a record high of Rs 184.60 on Jun 18, 2024.
The stock is trading in the bearish zone. The stock stands lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
The stock has been highly volatile in the last one year, indicates its beta of 1.4.
In the last session, the stock ended 2.29% higher at Rs 149.55 on BSE. Market cap of the firm stood at Rs 1.86 lakh crore.
Antique Broking has a buy rating on the stock with a price target of Rs 180 per share.
"We favour the company’s integrated operations, brand presence, financial prudence, and volume growth. We maintain BUY rating and SoTP-based price target of Rs 180 per share at an implied 6.7x 1HFY27E EV/EBITDA multiple," said the brokerage.
Phillip Capital has a price target of Rs 174 for the Tata Steel stock.
"While, we continue to feel that FY25 will be good year for India steel mills as new capacity commissioning will only contribute from FY26 in a meaningful manner, Tata Steel`s Indian operations are facing threat of higher levies (diluting RM advantage) and retrospective taxation. At the same time, if Netherlands operations were also halved due to EAF transformation, Indian operations will need to provide the additional cash support to Europe for an extended period of time, dragging the ability to grow Indian capacities. Therefore, considering near-term challenges, we are downgrading the stock to Neutral with revised target price of Rs 174 (6.5x FY26 EV/EBITDA to India and 6.0x to other businesses," it said.
Axis Securities has price target of Rs 175 with a hold call.
"We use SoTP and ascribe a 1-year Fwd EV/EBITDA multiple of 7.5x, 5.0x, and 4.0x to India standalone, other operations, and Europe respectively on Mar’26 EBITDA (Unchanged) to arrive at our Mar’25 forward target price of Rs 175/share (from Rs 187/share). We revise our EBITDA for FY25-26E on lower steel prices. We downgrade our rating from BUY to HOLD on the stock."