Tata Steel share price hits record high, market value breaking Rs. 1 lakh crore mark

Market value: Tata Steel Limited is an Indian multinational steel-making company. It is a subsidiary of the Tata Group. While on 31st March 2018, Tata Group held 31.64% shares in Tata Steel. Over 1 million individual shareholders hold approx, 21% of its shares. 

On the other side, Tata Steel’s share price gained over 2% percent on April 7th after the company achieved its highest-ever quarterly crude steel production of 4.75 million tonnes. The steel major achieved its highest-ever quarterly crude steel production of 4.75 million tonnes with a 3 percent QoQ growth in Q4FY21.

Moreover, full-year FY21 production was lower by 7 percent YoY primarily due to the disruption caused by the COVID-19 pandemic in 1HFY21, said the company in its BSE filing. During the quarter, steel production at Tata Steel Europe increased to 2.65 million tonnes and steel sales volume rose by 18 percent QoQ and 4 percent YoY, it added.

While the stock was trading at Rs. 881.95, up to Rs. 19.10, or 2.21 percent. It has touched a 52-week high of Rs. 882.30. It has touched an intraday high of Rs. 882.30 and an intraday low of Rs. 863.00. The stock price has surged over 132 percent in the last six months with the company’s market capitalization breaching the Rs. 1 lakh crore mark at Rs. 1,04,868.95 crore.

S&P Global Ratings has upgraded its long-term rating on the company to BB- from B+ and maintained the outlook at stable, according to a Mint report. While it said the rating upgrade was because the company was on track to slash part of its $15 billion debt in the next two years helped by higher realizations and strong cash flows.

Moody’s Investors Service;

Moody’s Investors Service said it has changed its outlook for Tata Steel Ltd to stable from negative. Its profitability has steadily improved to its 10-year high of Rs. 18,948 EBITDA/tonne. During the third quarter of FY21, from Rs. 4,969 in the first quarter, PTI reported.

Moreover, Moody forecasts a long-term sustainable EBITDA/tonne of Rs. 13,200 for fiscal 2022 for TSI. Form a 30 percent gap compared to the December quarter.