The price of Tata Steel’s shares continued to rise for five sessions, reaching a new 52-week high of ₹182. Motilal Oswal raised its rating to “Buy” with a target price of ₹210, citing continued development ambitions and robust anticipated cash flow.
On Tuesday, October 28, the price of Tata Steel shares increased by 3% to reach a new 52-week high of ₹182 per share, extending its winning streak for the fifth straight session. The stock’s upward momentum was sustained by a number of bullish brokerage outlooks, with Motilal Oswal joining the list of firms.
In its most recent note, the local brokerage company raised its recommendation on the stock from “Neutral” to “Buy,” with a target price of ₹210 per share based on the SOTP.
It turned bullish on the stock for the following four reasons:
- Improved realizations: The brokerage said Tata Steel is set to benefit from improving steel price realizations. To protect against rising imports, the Indian government has proposed a 12% safeguard duty on flat steel products, which is expected to help domestic operations achieve better realizations.
- Recovery in European business: Tata Steel’s European operations are moving toward breakeven amid restructuring and cost optimization. EBITDA losses have narrowed from USD 76/t in 2QFY25 to an USD 8/t EBITDA gain in 1QFY26, aided by lower energy costs and improved efficiency.
- Growing domestic steel demand: India’s steel demand is projected to grow by around 8–10% over FY26–27, backed by a robust demand environment, policy support, and an ongoing recovery in industry fundamentals.
- Aggressive capacity expansion: To meet growing demand, Tata Steel is aggressively expanding its capacity, targeting an increase from 26.5 MTPA in FY25 to 40 MTPA by FY30.
