The Tata Steel share price rose 3% to an intra-day high of Rs 181.90 on the National Stock Exchange. The stock is the top gainer on Nifty in a falling market. The surge is on the back of a key upgrade from the leading domestic brokerage house, Motilal Oswal. Wondering what’s changed?
Motilal Oswal has upgraded its rating to ‘Buy’ from ‘Neutral’ with a target price of Rs 210 on Tata Steel. This implies an upside of 19% from current levels. Here is a detailed analysis of what’s driving the bullish call.
Motilal Oswal on Tata Steel: Key reasons to benefit
Motilal Oswal, in its research note, stated that Tata Steel is one of the largest players in India’s steel sector and is set to benefit from improving steel price realisations, operating efficiencies, and the strong domestic demand outlook. Also, the implementation of the safeguard duty is expected to help domestic operations achieve better realisation.
Motilal Oswal on Tata Steel: Long-term outlook remains strong
The long-term outlook for the Tata Group company remains strong despite persisting near-term challenges due to global uncertainty around tariff escalations. The Indian business is expected to continue its strong performance, and an improvement in the European business performance is likely to support overall earnings.
Motilal Oswal on Tata Steel: Strong cash flow generation
“Tata Steel is expected to generate a strong operating cash flow of Rs 95,700 crore, which will help fund the ongoing and planned expansion of Rs 16,000 crore annually without leveraging the balance sheet. Net debt stood at Rs 84,800 crore as of Q1 FY26, which includes cash of Rs 14,100 crore. This translates into net debt-to-EBITDA of 3.21x as of June 2025,” said Motilal Oswal.
Tata Steel stock performance
The share price of Tata Steel has risen 3.6% in the last five trading sessions. The stock has given a return of 7.5% in the past one month and 28% in the last six months. Tata Steel’s stock price has raised investors’ wealth by over 21% in the past one year.