Tata Steel Ltd., incorporated in 1907, is a large capitalization company (having a market capitalization of Rs 167441.23 Crore) operating in the Metals – Ferrous sector.
The main products/revenue segments of Tata Steel Ltd. include steel products, energy and other operating income for the year ending March 31, 2021.
For the quarter ended 31-12-2021, the company reported consolidated total revenue of Rs 60,842.72 Crore, up 0.48% from last quarter, total revenue of Rs 60,553.63 Crore and in an increase of 52.84% compared to the same quarter of last year. Total income of Rs 39809.05 Crore. The company reported a net profit after tax of Rs 9415.88 Crore in the last quarter.
The brokerage initiates coverage on Tata Steel with a BUY recommendation and a target price (TP) of Rs 1,700/share, implying a 26% upside from the CMP. The stock is currently trading at 4.6x EV/EBITDA (consensus 1-Year forward) below its 10-year average of 6.3x. He expects steel prices to remain resilient, which would generate strong cash flow for the company in the coming quarters and allow it to continue its deleveraging even after continuing its growth investments. Although higher coking coal prices are impacting margins on 1HFY23, the margin trajectory remains robust and above the historical average, which is driving the company’s profitability.
The promoters held 33.92% of the company’s capital as of December 31, 2021, while the FIIs held 21.36% and the DIIs 18.1%.
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