Buy Tata Steel; target of Rs 180: ICICI Securities

ICICI Securities is bullish on Tata Steel recommended buy rating on the stock with a target price of Rs 180 in its research report dated April 10, 2025.

Broker Research

April 11, 2025 / 11:14 IST

Buy

ICICI Securities research report on Tata Steel

Tata Steel (TSL) has embarked on a major transformation plan at Tata Steel Netherlands (TSN) – built on a multi-pronged approach to maximise production efficiencies, lower fixed costs, optimise product mix and margins. Key points according to management: 1) The envisaged duration of the transformation plan is one year. 2) Expected to result in redundancies of 1,600 personnel. 3) Benefits in excess of EUR 500mn to be realised in FY26, followed by another EUR 50–60mn in FY27. Despite TSN being among the most efficient plants globally, management is considering the major transformation plan due to recent inflationary pressures pursuant to Russia-Ukraine war and unsustainably low spreads in Europe.

Outlook

We will keep close tabs on the development. Retain BUY on Tata Steel; unchanged TP of INR 180 on 6.8x FY27E EBITDA.

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