Tata Steel Ltd. share price target

TATA steel (TATA) reported Q2FY22 EBITDA below our estimates/consensus estimates (CE) by 19%/14% at Rs164.6bn (+2% QoQ). The miss was due to lower margins in both domestic and Tata steel Europe (TSE) operations. Sentiments on Chinese demand turned negative over last quarter. Contrary to historical trend of China pushing volumes in the exports market at unfeasible prices levels in wake of soft domestic demand, the flow of Chinese steel exports has been significantly contained this time with stringent curbs on production. Nonetheless, Chinese steel prices came under pressure with...

Tata Steel's Q2FY22 EBITDA was slightly below our estimate. India sales volumes increased by 11% QoQ to 4.58 mn tonnes and India operations EBITDA/t declined 10% QoQ to Rs29,256 due to rising coking coal costs. Nevertheless, European operations EBITDA/t increased 136% QoQ to Rs15,609 led by inventory gain and higher prices despite lower deliveries. Consolidated net debt fell Rs51 bn QoQ to Rs689 bn ($2 bn...

Tata Steel reports Q1 PAT at Rs 11918.08 crore, beats estimates Total revenue from operations rose by 55% QoQ to Rs 60,283 crore during the quarter. The company said that revenues improved across key entities with increase in realisation across geographies and higher deliveries at India, partially offset by lower deliveries at Europe. Raw material cost increased by 10.8% to Rs 22,218 crore in Q2 FY22 from Rs 20,044 crore in Q1 FY22. The increase was primarily due to increase in purchased iron ore and coal consumption cost across key entities, including higher purchase of finished & semi-finished goods. Adjusted EBITDA improved by 12.1% QoQ in the second quarter. Adjusted EBITDA per ton in Q2 FY22...

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,...

Consolidated revenue from operations surged 109.51% to Rs 53,371.81 crore in Q1 FY22 as against Rs 25,474.52 crore in Q1 FY21. Pre-tax profit was at Rs 12,076.75 crore in Q1 FY22 as against a pre-tax loss of Rs 3,380.58 crore in Q1 FY21. The exceptional loss stood at Rs 182 crore during the quarter as compared to an exceptional gain of Rs (58) crore during the corresponding quarter, last year. On a consolidated basis, production grew 42.23% to 7.88 million tonnes in Q1 FY22 from 5.54 million tonnes in Q1 FY21. Deliveries climbed 33.14% to 7.11 million tonnes in Q1 FY22 from 5.34 million tonnes in Q1 FY21....

TATA steel (TATA) reported Q1FY22 EBITDA above our estimates by 3.5% (in line with consensus estimates) on back of better than expected margins in domestic operations, offset by lower margins in TATA Steel Europe (TSE). Consolidated EBITDA grew 14% QoQ at Rs161.1bn (PLe:Rs155.6bn). We increase our EBITDA estimates for FY22e/FY23e by 24.4%/24.7% on back of higher margins across operations. China's strategy to limit production in tandem with domestic demand and discourage exports has structurally destabilised supplies from China. The...

TATA has been a key beneficiary of rising steel prices. While margin in India has been strong in the last few quarters, Europe should see a sharp jump, with EBITDA/t expected to cross USD250/t by 3QFY22. The deleveraging cycle should continue, with consolidated net debt expected to fall by 32% YoY to INR565b (0.8x EBITDA) in FY22. Consolidated EBITDA rose 14% QoQ to INR161.1b (highest ever) in 1QFY22. PAT at INR90.9b was higher than FY21 levels (INR82.7b). We raise our FY22E/FY23E EBITDA estimate by 16% each to factor in an...

an annual steel production capacity of ~34 million tonnes per annum (MTPA). TSL has been a part of the DJSI emerging markets Index since 2012 and has been consistently ranked among top five steel companies in the DJSI Corporate Sustainability Assessment since 2016...

Recently, in its Investor Day, Tata Steel (TSL) laid out its strategic Roadmap 2030. TSL is aiming to double Indian operations steel production capacity to 40 million tonnes (MT) by 2030. The doubling of domestic production capacity would be done through both organic as well as inorganic route. The company would focus on organic growth for the flat product segment and would participate in inorganic opportunities for the long product segment. In terms of product-wise break-up, by 2030 the target is to increase the production capacity of flat product portfolio to 30 MT (from 15.6 MT...

Tata Steel Limited is a diversified steel producer.