Geojit has given Buy recommendation for Tata Steel with a target price of Rs. 1745 in its research report issued on Aug 18, 2021
Geojit’s research report on Tata Steel
Tata Steel is a leader in the global steel industry with operations spanning over 26 countries with key operations in India, Netherlands and United Kingdom. Tata steel primarily caters to customers in automotive, construction, engineering, energy and power sectors. Consolidated revenue grew 6.8% QoQ (+109.5% YoY) led by favorable spot prices and improved realizations. Exports rose 16% of total sales compensating softness in domestic markets. EBITDA grew 13.8%QoQ as margin expanded 180bps QoQ to 30.2%, on higher steel prices and beneficial inventory changes.
We expect robust domestic demand recovery post pandemic accompanied by further deleveraging efforts and efficient capital allocation ensuring liquidity. We remain positive on the stock and reiterate our BUY rating on the stock with a revised target price of Rs. 1,745 using SOTP valuation.