Tata Steel shares gain on Q3 earnings, check latest price targets

Shares of Tata Steel rose nearly 2% on Tuesday after the Tata Group firm reported its Q3 earnings. The stock rose 1.74% to Rs 128.60 against the previous close of Rs 126.40 on BSE. The Tata Group stock is trading near its 52-week low of Rs 122.60 reached on January 13 this year. Market cap of the firm stood at Rs 1.58 lakh crore. Total 7.08 lakh shares changed hands amounting to a turnover of Rs 9.03 crore on BSE. The Tata Group stock has a one-year beta of 1.4, signaling high volatility during the period. 
 
The stock is trading lower than the 20 day, 30 day, 50 day, 100 day, 150 day, 200 day moving averages  day and 10 day moving averages. In a year, the stock has fallen 5%. 

The relative strength index (RSI) of Tata Steel stock stands at 35.6, signaling it's trading neither in the overbought nor in the oversold zone. 

The firm reported a 43.4 per cent fall in consolidated net profit to Rs 295.49 crore for the quarter ended December 31, 2024, due to lower income.

The firm had reported a consolidated net profit of Rs 522.14 crore in the year-ago period.

Consolidated income slipped to Rs 53,869.33 crore in the October-December period from Rs 55,539.77 crore in the corresponding quarter of the previous fiscal. 

Total expenses dropped to Rs 52,118.09 crore in Q3 against Rs 53,351.13 crore in the year-ago period.

The steel major had earlier said that its India crude steel production grew by 6 per cent to 5.68 million tonnes (MT) in the third quarter of the current fiscal compared to 5.35 MT in the corresponding quarter of the previous fiscal.

Global brokerage JP Morgan has maintained an overweight stance on the stock with a  target price of Rs 155. The company reported a better EBITDA on the back of lower-than-expected other expenses. Net debt reduction is a key positive for the company said the brokerage adding that earnings surprise was led by both India and US. Average selling prices were slightly better than expectations. Management's clarity on trajectory of raw material costs and Europe business profitability are key monitorables, said the global brokerage. 

Global brokerage Morgan Stanley has maintained equal weight rating on the stock with a target price of Rs 160. The brokerage said the company posted good show on domestic business. Its UK business performance was in line and other geographies did well said the brokerage adding that lower freight, handling, and repair costs boosted earnings.