Tata Steel is one of the largest players in India's steel sector, and the brokerage maintains a constructive stance, supported by a strong domestic demand outlook and favorable price support. In Europe, while near-term profitability remains contingent on spread recovery and energy costs, structural measures such as CBAM and tighter import quotas should improve pricing discipline and reduce margin pressure.
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Motilal Oswal Report
Domestic brokerge firm Motilal Oswal has reiterated its Buy rating on Tata Steel Ltd. with a SoTP-based target price of Rs 220 on FY28 estimate, implying a potential upside of 20% from the reports current market price of Rs Rs 183.
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The brokerage highlights that Tata Steel's Indian business is expected to continue its strong performance, driven by improved pricing. In Europe, while near-term profitability remains contingent on spread recovery and energy costs, structural measures such as CBAM and tighter import quotas should improve pricing discipline and reduce margin pressure.
Tata Steel is one of the largest players in India's steel sector, and the brokerage maintains a constructive stance, supported by a strong domestic demand outlook and favorable price support. Net debt stood at Rs 82,300 crore in FY26, which includes cash of Rs 10,000 crore. This translates into a net debt/Ebitda ratio of 2.4x in FY26.
At current market price, Tata Steel is trading at 6.8 times FY28E EV/Ebitda and 1.8x FY28E price/book.
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