Shares of Tata Steel fell 60 percent in 2 months, still not liking the brokerage firms? Why?


New Delhi. The stock of Tata Steel has lost 60 percent in the last 2 months. If we look at the condition of the market, investors are not able to understand in which direction this stock will move. 60 per cent fall of any stock is a big deal. And when a strong stock like Tata Steel falls like this, then everyone’s eyes are fixed for investment. So, is it a good idea to invest in Tata Steel stock now? Let’s know from the experts.

The steel industry giant belonging to the Tata Group had hit a high of Rs 1,386.25 on 6 April. Talking about today, it is being traded around Rs 867. In this way you can understand that it is showing a decline of more than half. Those who have bought at higher levels, their portfolio will be very painful.

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Due to the fall in the stock, the market cap of the company has also come down significantly. At present it has been reduced to Rs 1.05 lakh crore. On the other hand, if we talk about the technicals of Tata Steel, then it is moving below the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. Talking about 52 Week High, it has made Rs 1,534.60 on 16 August 2021 and Rs 843 is its 52 Week Low, which was made on 20 June 2020.

What do you think brokerage houses
According to a report in Business Today, brokerage houses are not too optimistic on this stock. CITI has reduced its target price from Rs 1,800 to Rs 1,085 for this. However, the firm has maintained its buy approach.

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The brokerage has said that, “The cut in its earnings estimates and EBITDA of 32/34 per cent should be revisited due to weakness in China’s export price. However, it may be time for bottom fishing.

Motilal Oswal reduced the target price
Apart from this, Motilal Oswal has given a natural rating to the stock of Tata Steel. The firm has reduced its old target of Rs 1,410 to Rs 965 for this. The firm said, “We believe that the 1HFY23 of Tata Steel Standalone is likely to contract by 66 per cent as compared to 1HFY22 driven by EBITDA, lower ASP, lower demand and peak coking coal cost and higher base effect. The low cost of iron ore or subsidized Russian coal would not be of any benefit to India’s operations. Therefore, the cost structure will only benefit from reduction in coking coal prices, that too by 70-75 per cent of the requirement, as operations in India are linked to coking coal.”

Tags: stock market, Tata steel


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