Tata Steel shares gain on Rs 12,000-crore capex plan

Shares of Tata Steel rose over 2 per cent today after the firm said it has planned capital expenditure (capex) of Rs 12,000 crore on its India and Europe operations during the current financial year. Tata Steel stock touched an intraday high of Rs 906.55 against the previous close of Rs 883.60 on BSE today.

It also touched an intraday low of Rs 892.25 on BSE. Tata Steel shares were trading higher than 20 day moving averages but lower than 5-day, 50-day, 100-day and 200-day moving averages.

Total 12.06 lakh shares of the firm changed hands amounting to a turnover of Rs 106.94 crore on BSE. The market cap of the firm rose to Rs 1.10 lakh crore on BSE. The stock hit a 52-week high of Rs 1,534.60 on August 16,2021 and a 52-week low of Rs 827.10 on June 23, 2022.

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Chief Executive Officer and MD of Tata Steel TV Narendran said, "The domestic steel major plans to invest Rs 8,500 crore in India and Rs 3,500 crore on the company's operations in Europe."

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Commenting on Tata Steel's CAPEX plans for FY23, he said: "We have planned for about Rs 12,000 crore of capex for the year of which about Rs 8,500 crore will be spent in India and the balance in Europe."

In India, the focus will be on the Kalinganagar project expansion and mining activity, and in Europe, it will be focused on sustenance, product mix enrichment and environment-related capex, Narendran said. The company is in process of expanding capacity of its plant in Kalinganagar, Odisha to 8 MT from 3 MT.

Shares of Tata Steel have tumbled 41.12 per cent from their 52-week high as the domestic market has become volatile due to negative global cues. The stock is down 19 per cent this year and lost 29.63 per cent in a year.

The Tata Group firm reported a 37 per cent rise in consolidated profit at Rs 9,835.12 crore for the quarter ended March 2022, mainly on account of higher income. It reported a net profit of Rs 7,161.91 crore in the year-ago quarter. During January-March 2022 quarter, Tata Steel's total income climbed to Rs 69,615.70 crore from Rs 50,300.55 crore