1: 2 Bonus, 1:10 Split; Rs 51 Dividend: Buy Tata Metal Stock, TP Rs 181: HDFC Securities

HDFC Securities has issued buy call for Tata Group metal company Tata Steel share for short term. The analyst has recommended traders to buy Tata Steel Ltd share with target price of Rs 181 and maintain stop loss at Rs 157 per share. Current market price of Tata Steel share on BSE is Rs 163.55 per share with intraday decline of 2.42% at the time of writing the story. The company has a market capitalisation of Rs 2,04,166.70 crore. Life Insurance Corporation of India (LIC) has an attractive 7.29% stake in Tata Steel with 90,97,67,778 shares.

Tata Steel Share Performance: The 52-week high price of Tata Steel share on BSE is Rs 170.70 per share (as on 26/04/2024) and 52-week low price is Rs 104.10 per share (as on 19/05/2023), respectively. Tata Steel has a PE of 45.68, ROE at 3.48, and EPS (TTM) of 3.59, according to BSE. Tata Steel shares fell 0.94% in last 1-week, soared 17% year-to-date (YTD), rose 36% in last 6-months, and jumped 50% in last 1-year. In last 5-years, Tata Steel stock surged 208% and rallied 334% in last 10-years.

HDFC Valuation On Tata Steel Share: Tata Steel share has been consolidating in narrow range for last 6 sessions. Primary trend of Tata Steel has been bullish as the stock has been making higher tops and higher bottoms. Metal sector has been outperforming for last few months and it is likely to continue. Tata Steel has been placed above all important moving averages, demonstrating bullish trend on all time frames.

Tata Steel To Go Ahead With £1.25 Billion Investment To Build Electric Arc Furnace in Port Talbot: According to the press release dated April 25, "Following 7 months of formal and informal national level discussions with the UK trade unions, Tata Steel will proceed with its £1.25 Billion investment to build a state-of-the-art Electric Arc Furnace in Port Talbot and commence closure of the existing heavy end assets in the following months."

"Tata Steel has informed the trade unions that Port Talbot's two Blast Furnaces No.5 and No.4 will close by end of June, and by end of September respectively. The multi-union proposal to maintain one blast furnace through the transition would have incurred at least £1.6 billion of additional costs (including higher operating costs and higher capital expenditure), created significant operational and safety risk, and put the business's future continuity in jeopardy. Discussions will continue with the trade unions during the next 2 weeks on a potential Memorandum of Understanding on the future ambitions of the business and the impact of the restructuring on employees."

Tata Dividend History: Tata Steel declared its highest ever dividend of Rs 51/share in 2022 and lowest ever dividend of Rs 3.60/share in 2023. Tata Steel declared 29 dividends since May 24, 2001. In the last 12 months, Tata Steel declared an equity dividend of Rs 3.60 per share. At the current share price of Rs 163.55, Tata Steel's dividend yield is 2.20%, as per data available at Trendlyne.

Tata Steel Bonus Share History: Tata Steel Ltd offered 1 bonus since August 11, 2004. The last Bonus that Tata Steel Ltd declared was in the ratio 1:2 with ex-date fixed as August 11, 2004.

Tata Steel Stock Split History: Tata Steel split the face value 1 time since July 28, 2022. Tata Steel last split the face value of its shares from Rs 10 to Re 1 in 2022. The share has been quoting on an ex-split basis from July 28, 2022.

Tata Steel Technical & Shareholding: Score is 60.6 indicating the stock is technically moderately strong. Stocks with score between 60 and 70 are considered as technically moderately strong. RSI is 62.4, RSI below 30 is considered oversold and above 70 overbought. MFI is 61.7, MFI below 30 is considered oversold and above 70 overbought. At 3.3, MACD is above its Center Line, but below signal line. FII/FPI have decreased holdings from 20.01% to 19.61% in March 2024 quarter. Number of FII/FPI investors increased from 1036 to 1043 in March 2024 quarter. Mutual Funds have increased holdings from 9.83% to 10.10% in March 2024 quarter, according to Trendlyne.

Tata Steel Financials: The large cap company for the quarter ended December 31, 2023 declared its consolidated net profit at Rs 522.14 crore from the net loss of Rs 2501.95 crore announced in the corresponding quarter of last year amid robust domestic demand offsetting weakness in Europe. Tata Steel announced a net loss of Rs 6511.16 crore for Q2 as a result of impairment charges. Tata Steels' consolidated revenue from operations for December 2023 quarter fell 3% to Rs 55,311.9 crore as compared to Rs 57,083.56 crore declared in the same quarter of preceding year. Sequentially, consolidated revenue from operations fell 0.7% from Rs 55,681.93 crore in the preceding quarter.

Disclaimer:

The stock has been picked from the brokerage report of HDFC Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.