Buy Tata Steel; target of Rs 499: Angel Broking

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26 Aug, 2025 12:21

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Angel Broking is bullish on Tata Steel and has recommended buy rating on the stock with a target of Rs 499 in its May 18, 2012 research report.

“Tata Steel reported disappointing set of numbers for 4QFY2012 due to weak performance from its Tata Steel Europe (TSE) operations. Nevertheless, we continue to maintain our Buy recommendation on the stock.”

“Tata Steel’s consolidated net sales growth was flat on a yoy basis to Rs33,999cr, in-line with our estimate of Rs33,437cr, mainly on account of subdued performance from its TSE operations due to lower realization. Standalone net sales increased by 13.7% yoy to Rs9,479cr. On a standalone basis, Tata Steel India’s average realization/tonne increased by 8.6% yoy to Rs48,230 and TSE’s average realization/tonne increased by 7.3% yoy to US$1,103. Sales volume of Tata Steel India operations increased by 3.5% yoy to 1.8mn tonnes and that of TSE’s operations decreased by 13.6% yoy to 3.55mn tonnes in 4QFY2012. Tata Steel India’s EBITDA/tonne decreased by 6.7% to US$331 in 4QFY2012. TSE’s EBITDA/tonne stood at US$8 in 4QFY2012 compared to US$85 in 4QFY2011 on account of higher raw-material costs.”

“Steel prices increased globally during CY2012. Coking coal prices, on the other hand, have declined over the past three quarters. These factors, coupled with brownfield expansion at its highly profitable India operations, are expected to result in better financial performance for Tata Steel during FY2013 and FY2014. Hence, we maintain our Buy recommendation on the stock with a revised SOTP target price of Rs499,” says Angel Broking research report.  

Public holding more than 90% in Indian cos

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