Tata Group’s metal giant can go up to Rs 200; brokerage gives ‘buy’ after Q4 results

Tata Steel share price today NSE, Tata Steel share price target, Tata Steel Q4 FY24 results: Shares of Tata Steel fell on Thursday, May 30, a day after the Tata group steelmaker’s Q4 profit, revenue missed Street expectations. Continuing the declining trend for the fifth day, the Tata Steel stock cracked as much as 6.2 per cent to the day’s low of Rs 163.35 on NSE. The counter closed at Rs 165.2, down 5.19 per cent on NSE.

Tata Steel Q4 FY24 results

On Wednesday, post-market hours, Tata Steel posted a consolidated net profit of Rs 611.5 crore for the quarter ended March 31, missing analysts’ expectations. The net profit was down 64.1 per cent on a year-on-year basis. 

The alloy maker registered revenue of Rs 58,687.3 crore for the fourth and final quarter of FY24, as against Rs 62,961.5 crore for the corresponding period a year ago, according to a regulatory filing. 

According to Zee Business research, Tata Steel’s March-quarter consolidated net profit was estimated at Rs 1,354 crore and revenue at Rs 61,096 crore. 

Tata Steel share price target: Is Tata Steel a good buy? Here’s what brokerages suggest

Jefferies has maintained a buy call on Tata Steel with a target of Rs 200 per share, implying an upside potential of nearly 15 per cent from the previous close. 

According to Jefferies, Q4 net debt was flattish quarter-on-quarter (QoQ). The brokerage also stated the following points post-Q4 results in its note:

• The company plans to infuse $2.1 billion in an overseas holding company to repay existing debt at offshore entities
• The company plans to infuse $2.1 billion in an overseas holding company to support restructuring costs in the UK

 Morgan Stanley has retained an equal-weight rating on Tata Steel with a target of Rs 135 per share. According to Morgan Stanley, the beat on consolidated EBITDA was led by better-than-expected performance in domestic and overseas businesses. The brokerage also highlighted the following points:

• Domestic: TSK Phase 2 expansion remains on track.
• UK: Existing heavy assets are nearing their closure

Tata Steel dividend 2024 news: 360% payout

Tata Steel has recommended a dividend of Rs 3.6 per equity share for FY24. 

Tata Steel dividend 2024 record date

Tata Steel has fixed June 21, 2024, as the record date of the final dividend.

Tata Steel dividend payment date 2024

According to the company’s filing, the dividend, if approved at the AGM, will be paid, subject to deduction of applicable tax at source, on and from Friday, July 19, 2024.

Rs 3,000 crore fund-raising plan

The board also approved the issuance of additional debt securities in one or more tranches to raise up to Rs 3,000 crore via non-convertible debentures (NCDs) on a private placement basis.

Tata Steel share price history 

As of May 30, Tata Steel shares have rewarded investors with a 62.5 per cent return in a year, outperforming headline index Nifty’s 21.9 per cent gain and sectoral index Nifty Metal’s 65.8 per cent rally.

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