Time period given by analyst is one year when Tata Steel Ltd. price can reach defined target.
Tata Steel Ltd., incorporated in the year 1907, is a Large Cap company (having a market cap of Rs 148781.93 Crore) operating in Metals – Ferrous sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 50249.58 Crore, up 26.23 % from last quarter Total Income of Rs 39809.05 Crore and up 43.22 % from last year same quarter Total Income of Rs 35085.86 Crore. Company reported net profit after tax of Rs 7011.50 Crore in latest quarter.
Investment Rationale
On the back of strength in steel prices, the brokerage expects Tata Steel to report a healthy performance in Q1FY22E. For the quarter, the brokerage expects Tata Steel’s standalone operations to report an EBITDA/tonne of Rs 33000/tonne (compared to an EBITDA/tonne of Rs 27775/tonne in Q4FY21 and Rs 5920/tonne in Q1FY21). Standalone operations is expected to report steel sales volume of 2.9 million tonne (MT) while European operation steel sales are likely to come in at 2.4 MT. Additionally, Bhushan Steel is expected to report a sales volume of 1.1 MT. The brokerage expects European operations to report an EBITDA/tonne of US$100/tonne. For Q1FY22, on a consolidated basis, the topline is expected to increase 113% YoY, 3% QoQ to Rs 51636 crore. Consolidated EBITDA for Q1FY22 is expected to increase 14% QoQ to Rs 16186 crore. Consolidated EBITDA margins are likely to come in at 31.3% (compared to 28.4% in Q4FY21)
Promoter/FII Holdings
Promoters held 34.4 per cent stake in the company as of March 31, 2021, while FIIs held 18.6 per cent, DIIs 25.4 per cent and public and others 21.6 per cent.
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