Tata Steel Gets Motilal Oswal's 'Buy' Upgrade, Sees 19% Upside — Check Target Price

Tata Steel is aggressively expanding its capacity in India to capitalize on rising domestic demand, targeting an increase from 26.5 mtpa in FY25 to 40 mtpa by FY30..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.Tata Steel Ltd. is one of the largest players in India's steel sector and is set to benefit from improving steel price realizations, operating efficiencies, and the strong domestic demand outlook. The implementation of the safeguard duty is expected to help domestic operations achieve better realization.While near-term challenges persist due to global uncertainty around tariff escalations, the long-term outlook for Tata Steel remains strong. The Indian business is expected to continue its strong performance, and an improvement in the European business performance is likely to support overall earnings.Tata Steel is expected to generate a strong operating cash flow of Rs 957 billion, which will help fund the ongoing/planned expansion of Rs 160 billion annually without leveraging the balance sheet. Net debt stood at Rs 848 billion as of Q1 FY26, which includes cash of Rs 141 billion. This translates into net debt/Ebitda of 3.21x as of Jun’25. At current market price, Tata Steel is trading at 6.8x EV/Ebitda and 1.9x FY27E price/book. We upgrade the stock from Neutral to BUY with an SOTP-based target price of Rs 210 per share on Sep’27 estimate..Click on the attachment to read the full report:.IndiGo Gets Anand Rathi's 'Buy' As It Initiates Coverage.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Tata Steel Gets Motilal Oswal's 'Buy' Upgrade, Sees 19% Upside — Check Target Price

While near-term challenges persist due to global uncertainty around tariff escalations, the long-term outlook for Tata Steel remains strong

NDTV Profit

NDTV Profit

Follow Us

DISCOVER US FASTER

DOWNLOAD THE APP