Why Tata Steel share price is rising despite broader weakness? This is the reason

Tata Steel Share Price: Shares of Tata Steel Ltd gained in Tuesday’s volatile session, defying broader market weakness. At around 12:30 PM, the tata stock was up 2.56 per cent at Rs 181.19, rising Rs 4.53 from the previous close.

In contrast, benchmark indices remained under pressure — the Sensex fell 289.05 points (0.34 per cent) to 84,489.80, while the Nifty 50 slipped 69.15 points (0.27 per cent) to 25,896.90.

Tata Steel Share Price Target 2025

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Tata Steel received yet another vote of confidence from analysts, with Motilal Oswal Financial Services upgrading the stock to a ‘buy’ from ‘neutral’ and setting a price target of Rs 210, implying a 16 per cent upside from current market price of Rs 181.90.

This marks the third bullish call in five days. Nomura initiated coverage on October 23 with a ‘buy’ rating, while InCred Equities upgraded the stock to ‘add’ from ‘reduce’ on Monday, also raising its target price.

Motilal Oswal highlighted Tata Steel’s strong domestic demand outlook and near-breakeven European operations as key earnings drivers. The company plans to expand its Indian steelmaking capacity from 26.5 MTPA to 40 MTPA by FY2030, aligning with India’s rising steel consumption.

Tata Steel Share Price Target: InCred Equities

InCred Equities has turned positive, upgrading Tata Steel to ‘ADD’ with a target of Rs 224.

The optimism is driven by expectations of a European post-war reconstruction demand boost, robust domestic consumption, and EBITDA uplift of Rs 35 billion by FY27 through improved spreads and deleveraging.

European turnaround ahead

Tata Steel’s European operations are showing signs of recovery, aided by cost optimisation and restructuring. EBITDA losses have narrowed from $76 per tonne to $8 per tonne in the first quarter, driven by operational efficiency and lower energy costs.

With the shutdown of the UK blast furnace and ramp-up in the Netherlands, Motilal Oswal expects European EBITDA per tonne to reach $70 by FY2028, lifting consolidated EBITDA per tonne to Rs 13,000, up from Rs 8,376 currently.