Tata Steel shares gain after Jefferies retain buy for a target of Rs 485

Tata Steel share price was up over a percent intraday on October 15 after Jefferies retained buy call on the stock.

The global research firm has maintained buy call on the stock with a target of Rs 485 per share. It is of the view that BSL gives a strong start to Q2 steel results adding that BSL's performance has positive read-through for Tata and JSW’s standalone results, according to a CNBC-TV18 report.

The stock was trading at Rs 378.35, up Rs 2.80, or 0.75 percent at 10:09 hours. It has touched an intraday high of Rs 385.80 and an intraday low of Rs 377.50.

Tata Steel BSL on October 14 posted a consolidated net profit of Rs 341.71 crore for the quarter ended September 2020, helped by higher income. The company had reported a loss of Rs 243.97 crore during the same period a year ago, Tata Steel BSL said in a BSE filing.

In May 2018, debt-laden Bhushan Steel Ltd (BSL) was acquired by Tata Steel through its wholly-owned subsidiary Bamnipal Steel Ltd (BNPL) in insolvency proceedings. It was later renamed as Tata Steel BSL.

According to Moneycontrol SWOT Analysis powered by Trendlyne, the company was inefficient in use of assets to generate profits - ROA declining in the last 2 years.

Moneycontrol technical rating is bullish with moving averages being bullish and technical indicators being neutral.