Tata Steel share price: What to do with Tata group stock after steelmaker's better-than-estimated Q4 results
Tata Steel shares registered minor losses on Wednesday, a day after the Tata group IT giant reported a better-than-expected set of Q4 results. Brokerages maintained largely positive views on the steelmaker, with targets as high as Rs 150 apiece (36 per cent upside).
Tata Steel shares gave up initial gains amid choppy trade on Wednesday, a day after the Tata group IT giant reported a better-than-expected set of financial results for the quarter ended March 2023. The stock of Tata Steel — one of the largest steelmakers in the country — gained by as much as Re 0.75 or 0.7 per cent at Rs 111.1 apiece in early trade on BSE.
Brokerages held on to largely positive views on the company after the release of its Q4 results, with targets set as high as Rs 150 apiece, translating to an upside of 36 per cent from Tuesday's closing price.
Tata Steel Q4 results: A summary
After market hours on Tuesday, Tata Steel reported an 83 per cent year-on-year fall in net profit to Rs 1,693 crore for the final quarter of the financial year 2022-23, much better than Steet estimates. Its revenue contracted nine per cent to Rs 62,962 crore compared with the corresponding period a year ago — also better than analysts' expectations, according to a regulatory filing.
Sebi to introduce centralised mechanism for verification in case of demise of investors from January 1
CCI approves Kedaara Capital Fund's acquisition of 1.74% equity stake in Lenskart, also clears acquistion of majority stake in Indira IVF by Zonnebaars
Amazon begins Kickstarter sale ahead of Great Indian Festival: 5 top smartphone deals offering upto 50% off
ICC World Cup 2023: Disney+ Hotstar introduces MaxView feature to stream matches in vertical mode - Details
AMFI rejig: IRFC, Polycab and Jio Financial Services among others may enter large-cap category, says Nuvama
Canada not looking to escalate situation with India, will continue to "engage responsibly": Justin Trudeau
According to Zee Business research, Tata Steel's quarterly net profit was estimated at Rs 288 crore on the back of revenue of Rs 59,418 crore.
The steel manufacturer's margin shrank by 10.2 percentage points though remained in double-digit percentage points.
Tata Steel's margin — a key measure of a company's profitability — came in at 11.5 per cent as against 21.7 per cent a year ago.
The company's earnings before interest, taxes, depreciation and ammortisation (EBITDA) per tonne — a key metric determining the amount of money a steelmaker generates by each tonne of the alloy it produces — stood much better than estimates.
Its EBITDA per tonne fell 30.7 per cent to Rs 16,160 crore. Zee Business analysts had estimated the company's EBITDA per tonne for the three-month period at Rs 13,107.
The company managed to reduce its net debt by Rs 3,900 crore, to Rs 67,810 crore.
Analysts say it remains unclear whether adequate support to the company's decarbonisation strategy would be agreed basis its discussions with the UK government.
Tata Steel has sought a financial package to the tune of 1.5 billion pounds from the UK to support its decarbonisation plans.
Tata Steel dividend
Tata Steel's board recommended a dividend of Rs 3.6 per share.
What brokerages make of Tata Steel Q4 earnings
Here's how some of the top brokerages rate Tata Steel after the Tata group steel major's announcements:
|Morgan Stanley||Equal-weight||Rs 110|
Morgan Stanley, which maintained its 'equal-weight' rating on the steel company with a target price of Rs 110, said Tata Steel's EBITDA came in much stronger than its estimates driven by better realisations and lower operating expenditure.
According to the brokerage, Tata Steel's European business, however, continues to struggle and emerged a big drag on the company in the January-March period.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
IND vs NED Free Live Streaming: When and How to Watch India vs Netherlands ODI World Cup 2023 warm-up Match Live on Web, TV, mobile apps online
Senior Citizen Savings Scheme (SCSS): Know how much return you will get on investment from Rs 1 to Rs 15 lakh in SCSS
ONGC, Oil India under pressure after Centre's windfall tax move; MGL, Gujarat Gas rise post-gas price hike
Gold and Silver price today (October 3, 2023): Precious metal futures trade under pressure; Gold below Rs 57,000
Traders' Diary: Buy, sell or hold strategy on Jubilant FoodWorks, RVNL, LTIMindtree, Federal Bank, AU Small Finance Bank, other a dozen other stocks today
From Maruti Suzuki to Tata Motors: Here's how top auto makers fared in terms of sales in September 2023
Air India's San Francisco flight, once diverted to Russia's Magadan, cancelled on due to operational issues