10:1 Split: Tata’s 117-Yrs Old Metal Co Issues Big Acquisition Update, Buy For TP Rs 173-181

Tata Group company from the metal sector Tata Steel Ltd on May 9, 2024, acquired 18,73,493 equity shares of Rs 10/- each at an issue price of Rs 427.01 per share (including a premium of Rs 417.01 preferential basis, for an aggregate amount of ~Rs 80 crore (hereinafter referred to as the 'Transaction'). Upon completion of the Transaction, the aggregate equity stake of the Company has increased to 98.61%.

Current market price of Tata Steel share on BSE is Rs 162.00 per share with intraday fall of 2.44%. Tata Steel shares declined 3.20% in last 1-week and soared 35% in last 6-months. Life Insurance Corporation of India (LIC) has an attractive 7.29% stake in Tata Steel with 90,97,67,778 shares. More details below:

2 Analysts Recommend Buy Call: Leading brokerage firm HDFC Securities has recommended buy call for Tata Steel share for short term. The brokerage has suggested traders to buy Tata Steel shares with target price of Rs 181 and maintain stop loss at Rs 157 per share. According to the brokerage firm, Tata Steel share has been consolidating in narrow range for last 6 sessions. Primary trend of Tata Steel has been bullish as the stock has been making higher tops and higher bottoms. Metal sector has been outperforming for last few months and it is likely to continue. Tata Steel has been placed above all important moving averages, demonstrating bullish trend on all time frames.

Choice Equity Broking too suggested buy call for Tata Steel share with first target price of Rs 169 per share and next target price of Rs 173 per share. The metal stock has rebounded from its 52-week low levels and currently trading close to its 52-week high price.

Tata Steel is presently trading higher than 20-day, 50-day, 100-day and 200-day moving averages however lower than 5-day.

Tata Steel Share Performance: The 52-week high price of Tata Steel share on BSE is quoted at Rs 170.70 per share (as on 26/04/2024) and 52-week low price is quoted at Rs 104.10 per share (as on 19/05/2023). Tata Steel has a PE of 45.68, ROE at 3.48, and EPS (TTM) of 3.59, as per BSE data. Tata Steel shares slipped 3.34% in last 2-weeks, dived 2.38% in last 1-month, and soared 48% in last 1-year. In last 5-years, Tata Steel stock witnessed attractive rally of 212% and jumped 312% in last 10-years.

Tata Dividend History: Tata Steel declared its highest ever dividend of Rs 51/share in 2022. Tata Steel declared 29 dividends since May 24, 2001. In the last 1-year, Tata Steel announced an equity dividend of Rs 3.60 per share. At the current share price of Rs 162.00, Tata Steel's dividend yield is 2.22%, as per data available at Trendlyne.

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 Bonus Share History: Tata Steel Ltd offered 1 bonus since August 11, 2004. The last Bonus that Tata Steel Ltd declared was in the ratio 1:2 with ex-date fixed as August 11, 2004.

Tata Steel Q3 Results: The large cap company for the quarter ended December 31, 2023 declared its consolidated net profit at Rs 522.14 crore from the net loss of Rs 2501.95 crore announced in the corresponding quarter of last year amid robust domestic demand offsetting weakness in Europe. Tata Steel announced 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.

About: Tata Steel was established in India as Asia's first integrated private steel company in 1907. With this, italso 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 the company registered a turnover of INR 1,37,030 crore in FY23. 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. It possesses and operates captive mines that help it maintain cost- competitiveness and production efficiencies through an uninterrupted supply of raw material, according to its official website.

Disclaimer: The stock has been picked from the brokerage report of HDFC Securities and Choice Equity Broking. 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.