Tata Group stocks are widely talked about and are one of the most famous lists of holdings in India that is continuously covered by various brokerages and other institutions.
Listed below is one stock from the Tata Group universe that gets a buy call with a Potential Upside of more than 20 percent:
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Tata Steel Limited
With a market capitalization of Rs 1.43 Lakh Crores, the stocks of Tata Steel Limited started their trading session on Tuesday at Rs 117.05 and currently trade at Rs 117.40. The company’s stock is inching near its 52-week high mark recorded at a price of Rs 124.30 apiece.
The company’s performance, during the most recent quarter as well as on an annual basis, has been in contrast to what the markets were expecting as it reports a dip in the operating revenues as well as after-tax profit figures.
Sequentially, the operating revenues went down from Rs 62,961.54 crores during Q4FY22-23 to Rs 59,489.66 crores during Q1FY23-24, and, the after-tax profits reduced from Rs 1,469.99 crores to Rs 796.13 crores keeping the timeframe the same.
Moreover, the above-mentioned metrics shifted down annually with the operating revenues going down from Rs 2.44 Lakh crores during FY21-22 to Rs 2.43 Lakh crores during FY22-23, and, the after-tax profits moving down drastically from Rs 41,749.32 crores to Rs 8,075.35 crores during the same time horizon.
Despite the same, BOB Capital Markets, having a positive outlook for the company, gave a ‘Buy’ recommendation for the stock with a target price of Rs 145 indicating a potential upside of around 24 percent as compared to the current price prevailing in the markets.
The rationale behind providing such a recommendation is pertaining to the transition from underperforming to flattish results in the coming periods as far as the financials are concerned. Moreover, the developments in the European markets are having positive signs with breakeven numbers being reported. The company also plans to start a new blast furnace plant in Odisha by February/March of next year.
The latest shareholding data portray the company’s Promoters holding a 33.9 percent stake, and the Foreign Institutional Investors (FIIs) holding a 20.28 percent stake in the company.
Tata Steel Limited is a company based in India that is engaged in the business of producing and marketing various steel products. Some of the products included in its portfolio include packaging steel, hot and cold-rolled steel, tubes, etc. Apart from operations within India, the company operates in South-East Asia and many other regions.
Written by Amit Madnani
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