Tata Steel Shares End Lower After Volatile Session Despite Q1 Beat

Here's what analysts have to say about Tata Steel's Q1 FY23 results:

Jefferies

• Maintains 'hold' with a target price at Rs 830 apiece.

• Strong performance in Tata Steel Europe aided by long-term contracts and favourable product mix.

Motilal Oswal

• Maintains 'neutral' with a target price of Rs 975 apiece.

• Q1 numbers were an 'all-round beat'.

• Strong tailwind of contractual prices aided Tata Steel Europe.

ICICI Securities

• Reiterates 'reduce' at a target price of Rs 827, an implied return of 13.31%.

• Strong Ebitda in Tata Steel Europe, support from contract realisations and favourable raw material movement aided the strong earnings.

• Higher thermal coal prices and provisions on coking coal and iron ore weighed on Tata Steel long production.

• Aims to wait for Ebitda contraction cycle to play out.

• Expects downcycle to not last over four-five quarters with the peak at Q1 FY23.

• Focus on product mix aided the performance, while supply-chain disruptions, elevated inflation led to demand moderation.