Tata Steel rallies 3% on turnaround in Q3 earnings
NEW DELHI: Shares of Tata Steel climbed nearly 3 per cent in Wednesday’s trade after the steelmaker reported a consolidated profit of Rs 232 crore for the quarter ended December 31, beating the Rs 120 crore estimate that analysts had projected in an ETNow poll.
The Tata group firm had posted a loss of Rs 2,747 crore for the corresponding quarter of last financial year. Brokerage Credit Suisse believes as 20-30 per cent of European contracts get renegotiated, buoyant EU prices should reflect in the company’s financials.
The brokerage, which expects margin expansion for the company, has raised its target price on the stock to Rs 560 from Rs 515. UBS, though, maintained a neutral rating on the stock with a target price of Rs 450.
Following the results, the stock jumped 2.9 per cent to hit a high of Rs 487 on BSE. The stock also advanced after N Chandrasekaran, chairman-designate of Tata Sons and currently the CEO and Managing Director of Tata Consultancy Services, was made Chairman of Tata Steel Board.
The company’s consolidated sales came in at Rs 29,279 crore compared with estimates of Rs 29,105 crore that analysts had projected in an ETNow poll.
Consolidated Ebitda stood at Rs 3,538 crore while consolidated margin was 12 per cent against 10.8 per cent estimated in the ETNow poll.
The Tata group firm had posted a loss of Rs 2,747 crore for the corresponding quarter of last financial year. Brokerage Credit Suisse believes as 20-30 per cent of European contracts get renegotiated, buoyant EU prices should reflect in the company’s financials.
The brokerage, which expects margin expansion for the company, has raised its target price on the stock to Rs 560 from Rs 515. UBS, though, maintained a neutral rating on the stock with a target price of Rs 450.
Following the results, the stock jumped 2.9 per cent to hit a high of Rs 487 on BSE. The stock also advanced after N Chandrasekaran, chairman-designate of Tata Sons and currently the CEO and Managing Director of Tata Consultancy Services, was made Chairman of Tata Steel Board.
The company’s consolidated sales came in at Rs 29,279 crore compared with estimates of Rs 29,105 crore that analysts had projected in an ETNow poll.
Consolidated Ebitda stood at Rs 3,538 crore while consolidated margin was 12 per cent against 10.8 per cent estimated in the ETNow poll.
