By Aditya Raghunath
Investing.com — Tata Steel Ltd (NS:) reported its numbers for Q1 FY22 lats week. Net profit came in at Rs 9,768.34 crore compared to a net loss of Rs 4,648.13 crore in Q1 FY21. Total income for Q1 FY22 was Rs 53,534.04 crore compared to Rs 25,662.43 crore in Q1 FY21.
The stock closed August 13 at Rs 1,461.65. The company’s share price has gained 138% in 2021 and over 250% in the last 12 months. Brokerages feel there is more steam left in the stock.
JP Morgan has an overweight rating on the stock with a target price of Rs 1,810. It says that the European segment should improve sharply.
CLSA has upped its target price to Rs 1,950 from Rs 1,750. It says the company will catch up with European peers in terms of profitability. Prabhudas Lilladher has the same target for the stock. It said, “Structurally global steel cost curve would increase by ~US100/t due to higher costs associated with reducing carbon footprint. This coupled with improved outlook on global demand and reduced supplies from China would sustain steel prices on elevated levels in medium term.”
Motilal Oswal (NS:) has a neutral rating on the stock. It said that while Tata Steel’s EBITDA (earnings before interest, tax, depreciation and amortization) for FY22 would be strong, sustenance would be key to meet its cash outflow.
