I-Sec maintains Buy on Tata Steel, keeps target price unchanged at Rs 180

ICICI Securities has maintained the Buy call on Tata Steel with a target price of Rs 180 (unchanged) . The current market price of Tata Steel Ltd. is Rs 136.

Tata Steel, incorporated in 1907, is a Large Cap company with a market cap of Rs 169875.90 crore, operating in Metals - Ferrous sector. Tata Steel's key products/revenue segments include Steel & Steel Products, Others, Power and Other Operating Revenue for the year ending 31-Mar-2024.



Financials For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 53869.33 crore, down -1.16% from last quarter Total Income of Rs 54503.

30 crore and down -3.01% from last year same quarter Total Income of Rs 55539.77 crore.

The company has reported net profit after tax of Rs 248.51 crore in the latest quarter. The company's top management includes Mr.

N Chandrasekaran, Ms.Bharti Gupta Ramola, Mr.Farida Khambata, Mr.

Deepak Kapoor, Mr.Shekhar Mande, Mr.N Chandrasekaran, Mr.

Noel Naval Tata, Mr.T V Narendran, Mr.Koushik Chatterjee, Mr.

Saurabh Agrawal, Mr.V K Sharma, Ms.Bharti Gupta Ramola, Mr.

Farida Khambata, Mr.Deepak Kapoor, Mr.V K Sharma, Mr.

Saurabh Agrawal, Mr.Noel Naval Tata, Mr.T V Narendran, Mr.

Koushik Chatterjee, Mr.Saurabh Agrawal, Mr.V K Sharma, Ms.

Bharti Gupta Ramola, Mr.Farida Khambata, Mr.Deepak Kapoor, Mr.

Shekhar Mande, Mr.N Chandrasekaran, Mr.Noel Naval Tata, Mr.

T V Narendran, Mr.Koushik Chatterjee, Mr.Shekhar Mande.

Company has Price Waterhouse & Co Chartered Accountants LLP as its auditors. As on 31-12-2024, the company has a total of 1,248 crore shares outstanding. Investment RationaleICICI Securities is positive on TSL management?s adherence to cost reduction and value enhancement, one of the four strategic objectives for CY30.

In our view, in light of unsustainably low spreads in the Europe at EUR 170/te (in Q3FY25) compared to multiyear average of $240/te and the recent inflationary pressures, pursuant to Russia-Ukraine conflict have resulted in a need to drive cost reduction. Besides, management reiterated that the green steel transition plan, under which one of the two blast furnaces would be replaced by a new DRI and EAF by 2030, is also being closely worked on through consultation with the Dutch government and various stakeholders. While I-Sec keeps its estimates unchanged at this juncture, they believe that the incremental benefit from the transformation plan could be EUR 70?80/te, much higher than their current EBITDA estimates of EUR 13?15/te for TSN.

The brokerage maintains a BUY on Tata Steel with an unchanged target price of Rs 180 on 6.8x FY27E EBITDA. Promoter/FII Holdings Promoters held 33.

19 per cent stake in the company as of 31-Dec-2024, while FIIs owned 18.53 per cent, DIIs 23.38 per cent.

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