CLSA downgrades Tata Steel to sell; shares hit 4-year low

Moneycontrol Bureau

Tata Steel shares slipped 2 percent intraday to touch a more than four-year low of Rs 255.80 Wednesday after CLSA downgraded the stock to sell. The foreign brokerage house has cut target price for the stock to Rs 215 a share from Rs 310. CLSA has also cut Tata Steel's earnings per share by 17-19 percent for FY14-15. Nirmal Bang also recommended a sell rating on the stock ahead of its first quarter earnings. The brokerage house expects the steel producer to report 72.2 percent degrowth in first quarter profit after tax of Rs 166.2 crore year-on-year, and net sales are likely to fall by 2.8 percent Y-o-Y to Rs 32,859.9 crore in June quarter.
 
At 11:37 hours IST, the stock was quoting at Rs 257.45, down 1.51 percent on the Bombay Stock Exchange. In last one month, it lost more than 11 percent and in one year, it tanked 41 percent. Also Read - TCS replaces Tata Steel as India's most admired company