Analysts have slightly raised their price target for Tata Steel, increasing it from ₹174.03 to ₹174.04. They cite marginal improvements in projected revenue growth and a modest reduction in the discount rate as reasons for the adjustment.
What's in the News
- Tata Steel India reported an 8% quarter-on-quarter increase in production to 5.67 million tons for the second quarter of fiscal year 2026, aided by the normalisation of operations after relining work at the Jamshedpur plant. (Announcement of Operating Results)
- The company signed a non-binding letter of intent with the Government of the Netherlands and the Province of North-Holland to progress its transition to low carbon dioxide steel production at Tata Steel Nederland, targeting significant emissions reductions and environmental improvements at the IJmuiden site. (Strategic Alliances)
- Tata Steel Limited received a demand letter from the Office of Deputy Director of Mines, Jajpur, for INR 19,027,253,760 related to a revised assessment of mineral dispatches. The company has filed a writ petition before the High Court of Orissa, which has restricted authorities from taking coercive action until the next hearing. (Regulatory Authority and Enforcement Actions)
- The Bombay High Court set aside a show cause notice and related proceedings against Tata Steel regarding taxable income for assessment year 2019-20, as the notice was issued by the wrong authority. Any revival or future action will be adjudicated on merits if precedents change. (Regulatory Authority and Enforcement Actions)
- Tata Steel's Board approved the divestment of the entire equity and preference stake held by TSAML in Ceramat Private Limited to Lionstead Applied Materials Private Limited, executing a share purchase agreement to complete the transaction. (Board Meeting)
Valuation Changes
- The consensus analyst price target has risen slightly, moving from ₹174.03 to ₹174.04.
- The discount rate has decreased marginally from 15.33% to 15.32%.
- Revenue growth projections have increased from 7.10% to 7.13%.
- The net profit margin estimate has edged down from 8.89% to 8.83%.
- The future P/E ratio forecast has increased from 14.03x to 14.11x.
Disclaimer
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