Shares of Tata Steel jumped nearly 6 percent in trade on Friday after global brokerage JPMorgan highlighted 500 million euro in potential cost savings from the company's transformation plans at its Netherlands operations.
The stock rose as much as 5.9 percent to an intraday high on the NSE following positive commentary from global analysts. The stock settled nearly 5 percent higher at Rs 133.47 on the NSE.
JPMorgan has retained its ‘Overweight’ rating on Tata Steel with a target price of Rs 180 per share. The brokerage expects the transformation programme to generate savings of €500 million by FY26 despite a challenging macroeconomic backdrop.
Tata Steel has announced it will cut around 1,600 jobs in management and support roles as part of its broader strategy to optimise costs, improve production efficiency, and enhance margins at its Netherlands plant. The company has adopted a comprehensive plan to improve fixed cost structure, maximise production efficiency, and refine its product mix.
“We will ensure that Tata Steel Nederland returns to its pre-eminent position as one of the most efficient steel-making sites in Europe, producing high-quality steel for our customers,” said T. V. Narendran, CEO and Managing Director of Tata Steel, who also chairs the Supervisory Board of Tata Steel Nederland.
The company said that difficult demand conditions in Europe—driven by geopolitical tensions, trade uncertainties, supply chain issues and surging energy prices—have impacted operations and financials, prompting the need for transformation.
CLSA has maintained a ‘Hold’ rating with a target price of Rs 145, acknowledging the same €500 million savings forecast and stating that the company aims to cut controllable costs by 15 percent under the restructuring plan.
Another global brokerage has kept an ‘Outperform’ rating with a target price of Rs 156, expecting the cost benefits to begin reflecting in the second quarter of FY26 and be fully realised by the fourth quarter.
Meanwhile, Citi has maintained a ‘Sell’ rating on Tata Steel, pegging the target price at Rs 115 per share.
Tata Steel reiterated its commitment to making its Netherlands operations among the most competitive and efficient steel producers in Europe, despite near-term headwinds.
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