Tata Steel shares lose steam in short term: Price targets, technicals, outlook and more 

Shares of Tata Steel have undergone correction in the short term. In fact, the Tata Group stock is down 22.61% from its record high reached in June this year. The metal stock rose to a record high of Rs 184.60 on June 18. Similarly, the Tata Steel stock has seen correction of 18% in the last six months. The stock lost 5.25% in a month and fell 7.5% in three months. However, in the long term, the stock managed to clock gains.  

Tata Steel shares have rallied 13.05% in a year and risen 2% in 2024. In two years, the stock was up 35.57%. The relative strength index (RSI) of Tata Steel stood at 36.4, signaling it's trading neither in the overbought nor in the oversold zone. 

In the current session, the metal stock climbed 2% to Rs 142.85 on BSE. Market cap of the firm rose to Rs 1.78 lakh crore. Total 15.45 lakh shares changed hands amounting to a turnover of Rs 21.83 crore on BSE.The Tata Group stock has a one-year beta of 1.5, signaling high volatility during the period. 

The Tata Group stock is trading higher than the 5 day but lower than the 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages indicating that the stock is in a bearish zone.

Shares of Tata Steel fell to a 52 week low of Rs 125.55 on November 24, 2023. 

International brokerage JP Morgan has maintained its over-weight stance on Tata Steel, with a price target of Rs 180 per share.

Morgan Stanley has kept its equal-weight rating intact, with a  price target of around Rs 175 per share. 

Axis Securities has a price target of Rs 175 on the Tata Group stock. 

"In FY25, consolidated sales volume is expected to increase by 1-1.4MT, led by 1.1MT from KPO-II, 0.2 MT from NINL, partially
offset by the shutdown at one of the BF at Jamshedpur for relining in Q4. Indian profitability will improve as the KPO-II ramps up and will add 3.5-4MT/5MT in FY26/27. Cost at KPO-II will come down by Rs 3-4k/t as it ramps up fully by FY27 due to operating leverage with its expansion from 3 to 8 MTPA," said Axis Securities. 

BOB Capital Markets has a buy recommendation on Tata Steel. It has given a price target of Rs 175. 

Prabhudas Lilladher has an accumulate rating on the stock with a price target of Rs 161. 

"We expect EBITDA CAGR of 30% over FY24-27E on the back of KPO volume ramp-up and Tata Steel Europe turnaround. The stock is trading at 6.4x/5.3x EV of FY26E/FY27E EBITDA. We maintain ‘Accumulate’ rating with revised TP of Rs 161 (earlier Rs 181) valuing at 6x EV of Sep’26E TSI EBITDA," said Prabhudas Lilladher.

The company reported a consolidated net profit of Rs 833.45 crore in the September 2024 quarter as against a loss of Rs 6,196.24 crore in the year-ago period.

However, revenue from operations slipped 3.19 per cent to Rs 53,904.71 crore in Q2 FY25 from Rs 55,681.93 crore in the corresponding period last year. Total expenses slipped to Rs 52,331.58 crore in Q2 compared to Rs 55,853.35 crore in the September 2023 quarter.