Tata Steel's Q4 Fireworks Fail to Spark Rally; Shares Flat on NSE, 360% Dividend Announced; Analysts Say 'BUY'

Tata Steel shares were under investors' radar this morning after the metal major posted a stunning financial performance for the fourth quarter of FY25. However, despite the upbeat earnings, the stock failed to sustain investor interest and saw a drop in today's session.

The broader market is also under pressure today, with the Sensex and Nifty 50 both down over 1% at the time of writing. The Nifty Metal Index was down 0.65%, due to weak sectoral sentiment.

On May 13, Tata Steel shares opened flat at Rs. 152 apiece but declined 2% to hit an intraday low of Rs. 149.15 on the NSE. The subdued investor sentiment came despite the company's strong earnings report. As of 1 pm Tata Steel Stock were trading at Rs. 149.48 after dropping 1.15%.

In the last five trading sessions alone, Tata Steel stock is up 6%. Over the past three months, the stock has gained 14%. Also, over the last five years, Tata Steel shares have surged by 423%, becoming one of the top multibagger stocks in the metal sector.

Take a Poll

Tata Steel Share Price Target

Systematix Research has reiterated a 'BUY' rating on Tata Steel with a target price of Rs. 169 per share, compared to the current market price of Rs. 152per share. The firm's positive view is mainly because of Tata Steel's improving margins and strategic investment plans that could support long-term growth.

Tata Steel Q4 Results

Tata Steel reported a consolidated profit after tax (PAT) of Rs. 1,200.88 crore with a massive 116.5% year-on-year (YoY) and 306.4% quarter-on-quarter (QoQ) increase. This was significantly above market expectations.

For the quarter ended March 2025, Tata Steel reported consolidated revenues of Rs. 56,200 crore, a 4.2% decline year-on-year but a 4.8% improvement Quarter- on-Quarter. However, the steel giant delivered an EBITDA of Rs. 6,560 crore, up 11.1% Quarter- on-Quarter, and only marginally lower YoY. EBITDA beat estimates by 7%, with margins improving to 11.7%, compared to 11.0% in Q3 Q3FY25 and 11.2% in Q4 Q4FY24.

Production and Sales Volume

Tata Steel's consolidated crude steel production in Q4 Q4FY25 stood at 7.45 million tonnes (mt), reflecting a 5% YoY and 3% QoQ decline. "Despite the lower production, consolidated deliveries rose to 8.3 mt, up 6% YoY and 8% QoQ, due to massive demand and inventory liquidation" as per Systematix research report.

Tata Steel Dividend 2025

Along with the fourth quarter results, the Board of Directors has recommended a final dividend of Rs. 3.60 per equity share (face value Rs. 1 each). the record date for the dividend has not been announced yet.

About Tata Steel

Tata Steel, a flagship company of the Tata Group, is one of the world's leading steel producers with a global presence across five continents. Founded in 1907, the company operates integrated steel manufacturing facilities in India, the UK, and the Netherlands. It is known for its innovation-driven approach and focus on sustainability, with a product portfolio that spans flat and long steel products catering to the automotive, construction, infrastructure, and engineering sectors. Tata Steel is also actively investing in green steel initiatives, including electric arc furnaces (EAF) and carbon-neutral technologies, aligning with global decarbonisation goals.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor GoodReturns. The author, nor the brokerage firm nor GoodReturns would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.