Tata Steel shares rallied over 8 per cent on Wednesday after the company during its fourth quarter results said that its loss narrowed to Rs 1,168 crore from Rs 3,042 crore in the corresponding quarter last year.
Tata Steel shares rallied over 8 per cent intraday on Wednesday after the company during its fourth quarter results said that its loss narrowed to Rs 1,168 crore from Rs 3,042 crore in the corresponding quarter last year. At 12.35 pm, Tata Steel share price was trading 7.64 per cent up at Rs 491.90. The share price of the company opened at Rs 470 and touched a high and low of Rs 496.85 and Rs 466, respectively in trade so far. Later, the share price of the company ended 7.95 per cent up at Rs 493.35.
The company said its loss narrowed following one-time non-cash pension curtailment charge. Morgan Stanley told BTVI Live that it has given an ‘Outperform’ rating on the stock at a target price of Rs 575. It said, “the company showcased strong performance across geographies and EBITDA was ahead of estimate.” The European EBITDA was 3 times higher than the brokerage house estimates.
Another brokerage house told BTVI Live that it has maintained ‘Hold’ rating. It has raised target price by 5 per cent to Rs 533 from Rs 510.
According to Reuters, Jefferies has raised its target price for the steel maker to Rs 404 from Rs 388, stating Q4 EBITDA well ahead of its estimates and that it represents the peak in terms of margins. The research firm has raised FY18-19E EBITDA estimates by 2-4 per cent.
Tata Steel was the top gainer on the BSE Sensex and NSE index. Tata Steel revenues rose to Rs 35,305 crore for the quarter under review, up 30.4 per cent from Rs 27,071 crore for the corresponding quarter in the previous fiscal.
For the full year, Tata Steel’s net loss jumped almost nine times to Rs 4,169 crore from Rs 497 crore in FY16 while sales grew to Rs 1.17 trillion from Rs 1.06 trillion.
Fitch Rating on Tuesday said Tata Steel and JSW Steel are well placed to benefit from anti-dumping duties since around 75 per cent of their capacity is for production of flat products, dominated by those included in the latest government notification.