Tata Steel drops 2.4% on CLSA downgrade post results

Shares of Tata Steel, the world's sixth largest steel making company dropped as much as 2.4 percent on Monday as CLSA has downgraded the stock from outperform to sell with a target price of Rs 325 after disappointing results.
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Nov 12, 2012, 03.47 PM | Source: Moneycontrol.com

Tata Steel drops 2.4% on CLSA downgrade post results

Shares of Tata Steel, the world's sixth largest steel making company dropped as much as 2.4 percent on Monday as CLSA has downgraded the stock from outperform to sell with a target price of Rs 325 after disappointing results.

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Tata Steel drops 2.4% on CLSA downgrade post results

Shares of Tata Steel, the world's sixth largest steel making company dropped as much as 2.4 percent on Monday as CLSA has downgraded the stock from outperform to sell with a target price of Rs 325 after disappointing results.

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Shares of Tata Steel , the world's sixth largest steel making company dropped as much as 2.4 percent on Monday as CLSA has downgraded the stock from outperform to sell with a target price of Rs 325 after disappointing results.

"Results disappointed with EBITDA coming in 33 percent below estimates. Margins weakened sharply driven by the falling cost curve in case of India operations and weakening demand-supply in case of Corus and both factors are unlikely to reverse anytime soon," CLSA explained.

Operating profit margin was 6 percent - much lower than streets estimates - in second quarter as against 7.9 percent in a year ago period, indicating costs pressures still persist.

Earnings before interest, tax, depreciation and amortisation (EBITDA) went down by 20.7 percent year-on-year to Rs 2,044.7 crore in the second quarter earnings.

Today at 14:35 hours IST, the stock fell 1.9 percent to Rs 383.15 on the Bombay Stock Exchange. On Friday, it had lost 3.25 percent.

Tata Steel stock price

On April 29, 2016, Tata Steel closed at Rs 350.55, up Rs 2.85, or 0.82 percent. The 52-week high of the share was Rs 384.20 and the 52-week low was Rs 200.00.


The company's trailing 12-month (TTM) EPS was at Rs 51.88 per share as per the quarter ended December 2015. The stock's price-to-earnings (P/E) ratio was 6.76. The latest book value of the company is Rs 686.39 per share. At current value, the price-to-book value of the company is 0.51.

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