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 157764.72 Crore) operating in Metals – Ferrous sector.
Tata Steel Ltd. key Products/Revenue Segments include Steel & Steel Products, Power and Other Operating Revenue for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 53534.04 Crore, up 6.54 % from last quarter Total Income of Rs 50249.58 Crore and up 118.68 % from last year same quarter Total Income of Rs 24481.09 Crore. Company reported net profit after tax of Rs 9646.07 Crore in latest quarter.
Investment Rationale
For the quarter, the brokerage expects Tata Steel’s standalone operations to report an EBITDA/tonne of Rs 36500/tonne (compared to an EBITDA/tonne of Rs 35558/tonne in Q1FY22 and Rs 12861/tonne in Q2FY21). Tata Steel’s standalone operations are expected to report steel sales volume of 3.5 million tonne (MT) while European operation steel sales are likely to come in at 2.2 MT. Additionally, Tata Steel BSL is expected to report a sales volume of 1.1 MT. The brokerage expects European operations to report an EBITDA/tonne of US$200/tonne. For Q2FY22, on a consolidated basis, the topline is expected to increase 62% YoY and 13% QoQ to Rs 60254 crore. The consolidated EBITDA for Q2FY22 is expected to increase 25% QoQ and 231% YoY to Rs 20212 crore. Consolidated EBITDA margins are likely to come in at 33.5% (compared to 30.2% in Q1FY22).
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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