Buy Tata Steel, target price Rs 127: Dharmesh Shah

Dharmesh Shah of ICICI Direct has buy call on Tata Steel with a target price of Rs 127. The current market price of Tata Steel is Rs 119.4. Dharmesh Shah recommended to keep stop loss at Rs 116.

Tata Steel, incorporated in the year 1907, is a Large Cap company (having a market cap of Rs 146522.53 Crore) operating in Metals - Ferrous sector.

Tata Steel key Products/Revenue Segments include Steel & Steel Products, Power, Other Operating Revenue and Others for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 60206.78 Crore, down -5.48 % from last quarter Total Income of Rs 63698.15 Crore and down -.57 % from last year same quarter Total Income of Rs 60553.63 Crore. Company has reported net profit after tax of Rs 1195.20 Crore in latest quarter.

The company’s top management includes Mr.Ratan N Tata, Mr.David W Crane, Ms.Mallika Srinivasan, Mr.O P Bhatt, Mr.Deepak Kapoor, Mr.Farida Khambata, Mr.Saurabh Agrawal, Mr.V K Sharma, Mr.Koushik Chatterjee, Mr.T V Narendran, Mr.N Chandrasekaran, Mr.Noel Naval Tata. Company has Price Waterhouse & Co Chartered Accountants LLP as its auditors. As on 30-09-2022, the company has a total of 1,222 Crore shares outstanding.

Investment Rationale
Stock sustaining above the recent cup & handle breakout area and MACD in buy mode.

Promoter/FII Holdings
Promoters held 33.92 per cent stake in the company as of 30-Sep-2022, while FIIs owned 21.95 per cent, DIIs 18.08 per cent.