Wednesday, August 10, 2022
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Tata Steel’s Q1 2022 profit dips, but JP Morgan says stock price may climb 45%

TATA STEEL's consolidated profit declined to Rs 7,765 crore while consolidated income increased to Rs 63,430 crore

The country’s largest steel company Tata Steel (TATA STEEL) delivered better than expected on the back of improvement in European business. However,Tata Steel’s profit declined on a year-on-year basis. Tata Steel’s profit declined by 20% to Rs 7765 crore. While the company’s margin was also better than expected at 23.6%. Tata Steel on July 25 announced its results for the first quarter of FY23.

Looking at the numbers, the consolidated profit of the company declined to Rs 7,765 crore in the first quarter of FY23 on a year-on-year basis as against Rs 9,768 crore in the first quarter of the previous fiscal.

The company’s consolidated income increased to Rs 63,430 crore in the first quarter of FY23 on a year-on-year basis as against Rs 53,371 crore in the first quarter of the previous financial year.

On a year-on-year basis, the consolidated EBITDA of the company declined to Rs 14,972.8 crore in the first quarter of FY23 as against Rs 16,109 crore in the first quarter of the previous financial year. However, the EBITDA margin declined from 30.2% to 23.6% on a year-on-year basis.

JP MORGAN has a bullish opinion on TATA STEEL

JP MORGAN Opinion on TATA STEEL has given an Overweight Rating on the stock. He has fixed the target price of the share at Rs 1400. He says that the company’s Europe business has seen an all-round boom. The business may remain good in the second half of the company. Europe traded firm in Q1 with EBITDA/T at $365/tonne. Steel prices in India are currently falling. Imports are also decreasing and demand is stagnant.

This target price given by JP MORGAN on TATA STEEL means that the global brokerage research firm is expecting a 45 percent jump in the stock price from the current level.

Today at 9:18 am, Tata Steel stock was trading at Rs 965.35, up Rs 4.45 or 0.46 per cent on BSE. It has touched an intraday high of Rs 974.00 and an intraday low of Rs 963.60 today. Today, on July 26, 2022, the stock of Tata Steel fell 1.17 percent or Rs 11.20 to close at Rs 949.50 on the NSE at the close of the market.

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Updated on August 10, 2022 2:53 pm