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.
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 July 14, 2014, Tata Steel closed at Rs 513.95, up Rs 13.00, or 2.60 percent. The 52-week high of the share was Rs 578.60 and the 52-week low was Rs 195.40.
The company's trailing 12-month (TTM) EPS was at Rs 66.02 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 7.78. The latest book value of the company is Rs 629.60 per share. At current value, the price-to-book value of the company is 0.82.
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