Rs 51/Share Dividend, 1:10 Split: Tata Stock Turns Rs 1.06 Lakh To Rs 1.65 Lakh In 1-Yr, Buy For TP Rs 200

Three leading analysts are upbeat on Tata Group metal stock, Tata Steel Ltd with maximum target price assigned at Rs 200 per share. It implies an upside of 23.57% if you buy Tata Steel shares now at last trading price of Rs 161.85 per share. Tata Steel shares have now rebounded from 52-week low levels as the stock soared 63.06% from 52-week low price of Rs 104.10 (as on 19/05/2023) if the last trading price of Rs 161.85 is taken into consideration.

Tata Steel shares offered return of 52.47% in last 1-year span. The large cap stock declared its highest ever dividend of Rs 51/share in 2022 and lowest dividend of Rs 3.60/share in 2023. LIC has stake of 7.29% in Tata Steel. The company also split its share in the proportion of 1:10 in 2022. More details below:

Tata Steel Turns Rs 1.06 lakh To Rs 1,65,000 In 12 Months: If you had purchased 1000 shares of Tata Steel Ltd on April 24, 2023 at the cost of Rs 106.4 per share, you would have got a total corpus of Rs 1,65,828.1 as on April 22, 2024 considering the stock offered return of 52.47% during this span and a dividend of Rs 3.6/share in 2023. Your net profit would be Rs 55,828.08 thousand with an investment of 1,06,400.

3 Analysts Bullish On Tata Steel Share: ICICI Direct has given positive recommendation to Tata Steel share with target price of Rs 165.00 per share. On the other hand, brokerage house Jefferies has assigned buy call to Tata Steel share with target price of Rs 200/share as the analyst maintains positive outlook on the stock.

Meanwhile, Prabhudas Lilladher said, "The stock has been in a strong uptrend with series of higher lows formation on the daily chart and the recent move also witnessed a decent pullback from Rs 140 levels of the significant 50EMA level and resisted near the Rs 170 zone to indicate a higher high formation. With some further profit booking expected, the near term support is visible at around Rs 157 zone where it can consolidate and anticipate for a reversal. The next higher targets visible are at Rs 184 zone once the positive trend reversal is confirmed."

Prabhudas in its earnings preview note said Tata Steel is likely to report a 40.5% decline in Q4 profit to Rs 1010 crore year-on-year (YoY) but up 70% against Q3 of the previous fiscal. Net Sales are likely to dip 4.1% YoY (up 9.1% Q-o-Q) to Rs 60,360 crore and EBITDA may fall 14.6% YoY (down 1.6% Q-o-Q) to Rs. 6,160 crore.

Tata Steel Share Performance: The 52-week high price of Tata Steel share on BSE is Rs 169.75 per share (as on 09/04/2024). The metal giant company has a market capitalisation of Rs 2,02,044.52 crore. The stock has a PE of 45.34 and EPS (TTM) of 3.73. Tata Steel shares declined 2.00% in last 2-weeks, soared over 31% in last 6-months, gained 76% in last 3-years, and surged 202% in last 5-years.

Order Win From Indian Railways: Tata Steel recently bagged massive railways order worth Rs 333.48 crore. The report stated, Tata Steel bagged 2nd highest supply quantity of 52,753 MT of steel being secured by the Indian Railways for Rs 333.48 crore. The steel procured will reportedly be used in fabrication of railways wagons, foot over bridges, coaches etc. Meanwhile, Steel Authority of India bagged railway order worth 891.17 crore, highest. After Tata Steel, Jindal Steel and Power secured order worth Rs 105.06 crore.

LIC Stake in Tata Steel: Life Insurance Corporation Of India has stake in Tata Steel. The PSU has 7.29% stake with 90,97,67,778 shares, as per data available on BSE.

Tata Steel Technical Analysis: Its score is 61.4 indicating it is technically moderately strong. Its RSI is 59.4, RSI below 30 is considered oversold and above 70 overbought. MFI is 52.0, MFI is 52.0, MFI below 30 is considered oversold and above 70 overbought. 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 Mar 2024 quarter, according to Trendlyne.

Tata Steel Dividend History: The metal giant announced 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 161.85, Tata Steel's dividend yield is 2.22%, as per data available at Trendlyne.

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 Financials: Tata Steel for the quarter ended December 31, 2023 announced its consolidated net profit at Rs 522.14 crore from the net loss of Rs 2501.95 crore declared in similar quarter of last year amid strong domestic demand offsetting weakness in Europe. Tata Steels consolidated revenue from operations for December 2023 quarter declined 3% to Rs 55,311.9 crore as against Rs 57,083.56 crore declared in the same quarter of last fiscal.

Disclaimer: The stock has been picked from the brokerage report of ICICI Direct, Jefferies, and Prabhudas Lilladher. 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.