The world of investing is all about information and expert insights. Motilal Oswal is a well-respected investment firm that provides valuable research and analysis to help investors make informed decisions. Now, let’s take a closer look at the recommendations for Tata Steel share price target by Motilal Oswal.
Their recommendations are backed by extensive data analysis, fundamental research, and market trends. By studying their insights, investors can gain valuable information to support their investment strategies and optimize their portfolios.
Let’s explore the latest recommendations and future outlook for Tata Steel’s share price by Motilal Oswal.
Tata Steel is an Indian multinational steel-making company, founded on August 25, 1907, by Jamsetji Tata. The company is headquartered in Mumbai, Maharashtra, and has a presence in over 50 countries. Tata Steel is one of the largest steel producers in the world, with a production capacity of over 30 million tonnes per annum.
The company’s products include hot-rolled coils, cold-rolled coils, galvanized sheets, and electrical steels. Tata Steel also provides a range of services, such as engineering and construction, mining, and logistics. The company’s area served includes India, Europe, Asia, and North America.
Tata Steel Price Live
First of all, let’s take a look at the current share price of Tata Steel. To visualize these changes, we can refer to the Tata Steel chart which displays the historical share prices, indicating the ups and downs over time.
Motilal Oswal provides research reports to investors, which include detailed analyses, insights, and recommendations on various stocks. Let’s explore the most recent recommendations for the Tata Steel share price target by Motilal Oswal.
|DATE||17 MAY 2023|
|Current Price||Rs 107|
|TARGET Price||Rs 110|
|Report||Read Full PDF|
TATA is well positioned to capitalize on the significant growth in domestic steel demand, driven by rapid expansion in the infrastructure, construction, and automobile sectors. The company has strategically increased its capacity to capture this robust growth trajectory.
TATA is recognized as one of the largest and most cost-efficient steel manufacturers. It benefits from strong raw material security, ensuring a reliable and timely supply of raw materials. The company’s multiple iron mines in India and Canada meet its entire iron ore requirement through captive sources.
Furthermore, TATA is actively enhancing its iron ore mining capacity from 36mt to 60-65mt, which will effectively meet the increased demand resulting from expanded capacity.
TATA offers a diverse range of flat and long steel products, with a particular focus on value-added products (VAP) catering to various sectors, including automobile, retail, packaging, construction, energy, consumer durables, and engineering.
On a global scale, steel prices have been experiencing downward pressure due to lower demand from the USA and Europe, as well as a slower-than-expected recovery in China.
While TATA faces potential headwinds as a global steel manufacturer, its strong emphasis on Indian operations and higher capital expenditure allocated to India should bode well for the company.
Although global steel demand is currently subdued as customers adopt a “wait and watch” approach, it is expected to improve before the onset of the monsoon season. Customers are anticipated to build up their inventory, and the government plans to increase infrastructure spending ahead of next year’s elections.
Despite TATA’s favorable prospects, the stock is currently trading at 5.5x FY24E EV/EBITDA, and we believe it is fully priced at current levels. Therefore, we maintain our neutral rating on the stock, with a target price of INR110 based on a sum-of-the-parts (SoTP) analysis.
Key downside risks for TATA include its heavy reliance (85-90%) on domestic merchants or imports for coal, as any significant increase in coal prices could adversely impact the company’s margins. Additionally, TATA’s UK operations continue to pose challenges, with no support from the local government and assets approaching the end of their useful lives. If immediate support is not received, TATA may be compelled to shut down its upstream operations in the UK.
|17 MAY 2023||110.00||Neutral|
|03 MAY 2023||110.00||Neutral|
|01 NOV 2022||94.00||Neutral|
|23 SEP 2022||106.00||Neutral|
|20 JUN 2022||965.00||Neutral|
|05 MAY 2022||1440.00||Neutral|
|08 FEB 2022||1330.00||Neutral|
|31 JAN 2022||1235.00||Neutral|
|15 AUG 2021||1565.00||Neutral|
|23 JUN 2021||1210.00||Neutral|
|07 MAY 2021||1205.00||Neutral|
|11 FEB 2021||708.00||Neutral|
|16 NOV 2020||456.00||Neutral|
|15 AUG 2020||433.00||Neutral|
|01 JUL 2020||328.00||Neutral|
|08 FEB 2020||450.00||Neutral|
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