Tata Steel shares: What analysts say on this Tata group stock post Q4 miss

Tata Steel Ltd shares plunged over 5 per cent in Thursday's trade as the steel maker's Q4 earnings surprised the Street negatively, thanks to domestic steel prices that remained under pressure, with India importing higher volumes of finished steel from producers in China.

Shreyansh Shah, Research Analyst at StoxBox said while the steelmaker reported a profit, it missed market estimates. "The rising coking coal prices acted as a dampener to the company’s performance. The company’s growth in revenues was led by high volumes that can be attributed to an uptick in steel demand fuelled by heavy infrastructure spending, but higher coking coal costs and the loss at its foreign subsidiaries weighed on the gains. The company’s expansion is in line, and we believe that once the pain of its subsidiaries in the western part is accounted for, it will have a healthy financial performance in the long term," it said.

Yes Securities said it has 'ADD' rating on Tata Steel, which it would be reviewing post the conference call that was scheduled at 1 pm today. Prabhudas Lilladher suggested 'accumulate' rating on the stock.

It said Tata Steel’s 4QFY24 consolidated Ebitda grew 5 per cent QoQ to Rs 6,600 crore, better than its etimate of Rs 6,200 crore on strong operating performance from India operations.

"RM cost per ton grew 9% QoQ to Rs28,044/t while other expenses declined 14 per cent QoQ to Rs21,091/t on better operating leverage, lower royalty despite some rise in freight & repairs," it said.

Shah of StoxBox said the steel makers' strategy of leveraging pan-India growth and branded presence will help them grow faster in the medium term in the high-margin business. "With the Automotive, Infrastructure & Construction segments seeing continuous improvement, our outlook for the steelmaker remains positive," he said.

Tata Stel shares were trading 5.20 per cent lower at Rs 165.15 on BSE.