1:10 Stock Split, Rs 51/Share Dividend: Buy Tata Stock As Shares Likely To Rally, TP Rs 177: Axis Securities

Leading brokerage firm Axis Securities has assigned buy call to Tata Group stock from iron & steel sector, Tata Steel Ltd with maximum target price of Rs 177 apiece. Current market price of Tata Steel share on BSE is Rs 155.90 apiece. The company has a market capitalisation of Rs 1,94,616.87 crore.

The company has a PE of 43.67 and EPS (TTM) of 3.73. Meanwhile, it is important to note that LIC has also stake in the stock and it stands at 7.29% as it holds 90,97,67,778 shares. Tata Steel shares soared 52% in last 1-year and 23% in last 6-month. Tata Steel shares have been maintaining an upward rally for sixth consecutive session. Check details below:

Tata Steel Shares Performance & Return Over Years: The 52-week high price of Tata Steel shares on BSE is Rs 159.50 apiece and 52-week low price is Rs 101.65 apiece, respectively. Tata Steel shares surged 11% in last 1-month, rallied 23% in last 6-months, gained 16% in last 2-years, and offered shareholders return of 103% in last 3-years. In last 5-years, Tata Steel stock zoomed 208%.

Tata Steel Technical Analysis: It scores 66.76 and stock is technically moderately strong. Stocks with score between 60 and 70 are considered as technically moderately strong. Its RSI is 61.6, RSI below 30 is considered oversold and above 70 overbought. MFI is 70.4, MFI above 70 is considered overbought. It indicates that stock may show pullback. Number of FII/FPI investors declined from 1072 to 1036 in Dec 2023 quarter. Mutual Funds have jumped holdings from 9.44% to 9.83% in Dec 2023 quarter, according to Trendlyne.

Brokerage Recommends Buy: Axis Securities has given buy rating to Tata Steel shares with price target in the range of Rs 167-177 per share. The brokerage has recommended to maintain the stop loss at Rs 143. As per the analyst, "Tata Steel has breached the multi-year resistance around Rs 150 level on the weekly chart, suggesting a continuation of the medium-term uptrend. The previous resistance level of Rs 150 is anticipated to now serve as support, adhering to the principle of polarity, thereby establishing a supportive zone for the stock's price action. The stock is trending within an upward sloping channel, recently finding support at the lower band and now heading towards the upper band."

Tata Steel Dividend History: Tata Steel declared 29 dividends since May 24, 2001. In the last 12 months, Tata Steel declared an equity dividend of Rs 3.60 per share. At the current share price of Rs 155.15, Tata Steel's dividend yield is 2.31%, as per data available at Trendlyne. Tata Steel announced highest ever dividend in 2022 at Rs 51/share and fixed the ex-dividend date as June 15, 2022.

Tata Steel Stock Split History: Tata Steel split the face value 1 time since July 28, 2022. Tata Steel last split the face value of its shares from Rs 10 to Re 1 in 2022. The share has been quoting on an ex-split basis from July 28, 2022.

Tata Steel Financials: Tata Steel for the quarter ended December 31, 2023 announced its consolidated net profit at Rs 522.14 crore from the net loss of Rs 2501.95 crore declared in the similar quarter of preceding year on the back of robust domestic demand offsetting weakness in Europe. Tata Steel declared a net loss of Rs 6511.16 crore for Q2 as a result of impairment charges. Tata Steels' consolidated revenue from operations for December 2023 quarter fell 3% to Rs 55,311.9 crore as compared to Rs 57,083.56 crore declared in the same quarter of preceding year. Sequentially, consolidated revenue from operations fell 0.7% from Rs 55,681.93 crore in the preceding quarter.

Tata Steel About: Tata Steel was established in India as Asia's first integrated private steel company in 1907. With this, it also developed India's first industrial city at Jamshedpur. Today, it is among the leading global steel companies. Its annual crude steel capacity across Indian operations is nearly 20 MnTPA and it registered a turnover of INR 91,037 crore in FY21. It also set up its second greenfield steel plant of 3 MnTPA in the eastern state of Odisha in 2016; the expansion to 8 MnTPA in currently underway, according to its official website.

Disclaimer: The stock has been picked from the brokerage report of Axis Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.