Steel stock prices added more than 3 percent in the morning session on February 7 after the company stated in December quarter income.
The steelmaker on February 4 reported the consolidated net income of Rs 9,573 Crore for the third quarter which ended December 2021, up 159 percent from Rs 3, 697 Crore in the period last year. The company’s post-tax advantage in the previous quarter was at Rs 11,918 Crore.
Consolidated income for the largest private sector steel maker in the country reached Rs 60,783 Crore, up 45 percent from RS 41,935 Crore which was reported in the same period last year. Revenue in the previous quarter stood at Rs 60,387 Crore.
European operations the company continues to perform better, supported by a strong increase in realization.
EBITDA consolidation (profit before interest, tax, depreciation, and amortization) reached Rs 15,853 Crore for the quarter, which was 64 percent higher than RS 9,652 Crore reported in the same period last year.
In sequence, EBITDA consolidation fell 5 percent from RS 16,618 Crore.
Stock traded at Rs 1,212.55, up to RS 36.40, or 3.09 percent, at 10:24 a.m. It touches the highest intraday RS 1.213.40 and Low intraday Rs 1,166.10.
This is what the global broker said about Tata Steel after his Q3 number:
CLSA.
The global brokerage company has a “buy” call in stock with a target at Rs 1,820 per share. This is the view that the EBITDA Q3 is mostly in line, adding that India’s profitability was positively surprised. However, European profitability is influenced by higher energy costs.
JP Morgan.
Global research companies have “overweight” calls in stocks with targets at Rs 1,850 per share.
“Q3 is a rental with a strongest quarter that is strong and with a large reduction in clean debt. Standalone India now reflects India and BSL. European order has a flat volume, higher energy costs and repair costs. The market seems to expect a sharp correction of steel prices, With steel prices continue to move higher, “he added.
Investec.
The research company has a buying call with a target at Rs 2,000 per share. The company believes that the performance of steel makers is in line, while capital allocations in European business will be watched.
“Tata Steel expects Indian steel prices to remain strong, while European prices must remain stable,” he said.
