Is it a good time to buy Tata Steel shares?
The share price was around 980 and it started to trade at around 98 rupees. Now new long-term investors will attract to this price and start to invest in it. As per our view, current levels are good for investors, let's focus on technical charts and fundamentals.
The Tata Steel share, which is one of the top picks of the brokerages in the steel sector, has gained 30.39 per cent from its 52-week low in nearly two months. On June 23, 2022, the large cap stock fell to a yearly low of Rs 82.71 on BSE. Tata Steel shares hit a 52-week high of Rs 147.67 on September 14, 2021.
According to stock market experts, demand for steel has risen in post-pandemic period while supply of the metal has further gone down creating demand-supply constraint for metal companies. Apart from this, recent Russia-Ukraine crisis has further worsened the steel supply for steel maker companies globally.
Tata Steel Ltd. has an average target of 105.43. The consensus estimate represents a downside of -0.73% from the last price of 106.20.
Moreover, steel demand across the globe is close to reaching pre-pandemic levels. The Indian government is also pushing its spending on infrastructure, thus driving domestic demand in this segment. This puts Tata Steel first on our list of undervalued bluechip stocks that should be on your watchlist this year.
Tata Steel's net debt is only 0.70 times its EBITDA. And its EBIT easily covers its interest expense, being 10.8 times the size.
However, Tata Steel's strong cash flow on the back of robust operating performance is posting confidence on its future perspective. The stock may witness lower levels buying for the target of Rs 100 in the short term and Rs 107 levels for the long term."
1. Tata Steel Ltd. One of India's biggest steelmakers, Tata Steel, was founded in 1907 by Jamshed Ji Tata. Tata Steel Limited was earlier known as Tata Iron and Steel Company Limited (TISCO).
As per the firm, in the long term, the potential of Tata Power's business is good. Tata Power is the best placed private player in the power sector.
The World Steel Association (worldsteel) has today released an update of its Short Range Outlook (SRO) for 2022 and 2023. worldsteel forecasts that steel demand will contract by 2.3% in 2022 to reach 1,796.7 Mt after increasing by 2.8% in 2021. In 2023 steel demand will see a recovery of 1.0% to reach 1,814.7 Mt.
Which steel share is best?
- Tata Steel Ltd.
- Adani Enterprises Ltd.
- JSW Steel Ltd.
- Steel Authority of India Ltd.
- Jindal Steel & Power Ltd.
Bhilai Steel Plant has been the flagship integrated steel plant unit of the Public Sector steel company, the Steel Authority of India Limited and is its largest and most profitable production facility.
quote is equal to 104.200 INR at 2022-11-22. Based on our forecasts, a long-term increase is expected, the "Tata Steel Ltd" stock price prognosis for 2027-11-19 is 584.136 INR. With a 5-year investment, the revenue is expected to be around +460.59%. Your current $100 investment may be up to $560.59 in 2027.
BSE:TATASTEEL is in uptrend and you can see the channels and zones in this chart.
| Name | LTP | Chg.(%) |
|---|---|---|
| Bajaj Finance | 6,777.45 | 0.44 |
| Bajaj Finserv | 1,652.85 | 1.17 |
| Bharti Airtel | 837.40 | -1.12 |
| Britannia Inds. | 4,213.05 | 0.70 |
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Tata Steel vs TCS (Tata Consultancy Services)
| 50% | Promoters |
|---|---|
| 50% | Detractors |
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Tata Steel Vs SAIL – Revenue Growth.
| Year | Tata Steel Revenue (Rs. Cr.) | SAIL Revenue (Rs. Cr.) |
|---|---|---|
| 2020 | 148,972 | 61,664 |
| 2019 | 157,669 | 66,973 |
| 2018 | 123,249 | 57,496 |
| CAGR (%) | 14.63% | 12.47% |
In fact, some of the Tata group stocks figure in the list of multibagger stocks in India. Shares of Automotive Stampings, TTML and Indian Hotel are one of such Tata stocks that have at least doubled shareholders money in last one year.
Here are a few reasons behind the fall in share price: A slowing global economy due to the Russia-Ukraine war & the inflation in the US soaring to 41-year high led to an abrupt end to the great commodity bull cycle seen in steel & the other base metals. This led to a heavy fall in metal stocks, including Tata Steel.
According to analysts, steel stocks are likely to remain under pressure due to the global slowdown and delays in infrastructure activities such as road and highway construction, which may put additional pressure on prices in the coming quarters.
Is Tata Steel in loss?
Homegrown steel major Tata Steel on Monday reported a consolidated profit after tax (PAT) of ₹1,514 crore for the quarter ended September 2022 on the back of higher costs and weak operational performance amid a global economic slowdown.
Price-To-Earnings vs Fair Ratio: TATASTEEL is good value based on its Price-To-Earnings Ratio (4.5x) compared to the estimated Fair Price-To-Earnings Ratio (15.9x).
In July 2022 exports of finished steel stood at 3.80 lakh MT. The annual production of steel is anticipated to exceed 300 million tonnes by 2030–2031.
Tata Steel group is among the top global steel companies with an annual crude steel capacity of 34 million tonnes per annum. It is one of the world's most geographically diversified steel producers, with operations and commercial presence across the world.
Tungsten, which is Swedish for "heavy stone," is the strongest metal in the world. It was identified as a new element in 1781. It is commonly used to make bullets and missiles, metal evaporation work, manufacturing of paints, creating electron and Television tubes, and making glass to metal seals.