Tata Steel share surges on massive growth plans—JPMorgan rolls out fresh target

Tata Steel shares traded higher on Thursday after the company outlined a sharp expansion strategy focused on capacity growth, raw material security and new partnerships. The stock was among the top Nifty 50 gainers.

Stock performance

At around 10:22 AM, Tata Steel was up 1.5 per cent at Rs 164.65. The stock gained 2 per cent to hit the intraday high of Rs 165. Tata Steel has risen 20 per cent so far this year, sharply outperforming the Nifty 50’s 8.7 per cent gain over the same period. The company’s market capitalisation stands at Rs 2.05 lakh crore.

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Capex and expansion push

The stock advanced as investors welcomed the company’s latest capex roadmap. A major component of the plan is the expansion of Neelachal Ispat Nigam Ltd (NINL). Tata Steel will scale up NINL’s capacity by 4.8 MTPA to 5.8 MTPA, with long-term potential to reach 10 MTPA.

The company will also set up a 2.5 MTPA thin slab caster and rolling mill in Odisha. Additionally, Tata Steel will build a 700,000-tonne hot roll pickling and galvanising line in Maharashtra to strengthen its downstream portfolio.

Strategic partnerships in Maharashtra

Tata Steel announced a strategic collaboration with Lloyd Metals and Energy covering mining, logistics, slurry pipelines, pelletisation and steelmaking. The partnership includes plans for a greenfield 6 MTPA steel plant in Maharashtra, to be built in two phases, expanding the company’s western India presence.

To deepen this alliance, Tata Steel has acquired nearly 50 per cent in Triveni Pellets for about Rs 630 crore. The investment will help secure pellet supplies and support cost efficiencies.

Green steel and sustainability focus

The company is also accelerating its decarbonisation plans. Tata Steel has begun work on a 1 MTPA Hisarna-based green steel facility in Jamshedpur, a technology it already operates in the Netherlands.

Tata Steel share price target 2025

JPMorgan maintained an overweight rating on Tata Steel (CMP: Rs 162) while cutting its target price to Rs 193 from Rs 195.
The brokerage said the long-awaited Neelachal expansion is a key positive. It also highlighted that multiple strategic projects and partnerships strengthen the company’s long products portfolio.

The acquisition of Triveni Pellets will help secure a dedicated pellet-making facility and support raw material integration, JPMorgan noted.