There has been a tremendous jump of 35 percent in the sales of Tata Steel in the June quarter. This stock has given a return of 250 per cent in the last one year. Due to the rise in steel prices, brokerage firms are advising to buy this stock.
Tata Steel has given a great return of 251 percent in one year.
The June quarter was excellent for Tata Group’s steel company TATA Steel. Steel production on an integrated basis increased by 43 per cent to 79.4 lakh tonnes. In the same quarter a year ago, the company’s production stood at 55.3 million tonnes. Tata Steel said in a statement issued on Sunday that the company’s consolidated sales grew 35 per cent to 7.14 million tonnes in the April-June period, as against 5.33 million tonnes in the year-ago quarter.
After this report came, today the shares of Tata Steel are seeing a rise. Its stock is trading at the level of Rs 1160 with a gain of 2.12 per cent at 2.30 pm. The 52-week high is Rs 1246.85 while the low is Rs 327.35. This stock has given excellent returns of 3.50 percent in the last one month, 33.66 percent in three months, 80 percent so far this year and 251 percent in the last one year. Global brokerage firms are advising to buy this stock. CLSA has kept a target price of Rs 1462 for this. Pritesh Mehta of YES Securities is giving the target price of Rs 1750 for this.
Steel prices likely to rise
Nifty Metal has gained 60 per cent so far this year. Tata Steel’s performance across its peers has been excellent. Yes Security is seeing strong support for this stock at 1020 level. In fact, there is every possibility of a rise in steel prices and its business in Europe is doing well. This is the reason why brokerage firms are advising to buy in this stock.
55 percent jump in production in India
Meanwhile, the company’s production in India increased by 55 per cent to 4.62 million tonnes during the June quarter, from 2.99 million tonnes in the same quarter of the previous financial year. Tata Steel’s supply increased by 42 per cent to 4.15 million tonnes from 29.3 lakh tonnes. Tata Steel Europe’s steel production grew by 27 per cent to 2.73 million tonnes in the quarter under review, from 2.15 million tonnes in the same period a year ago. During this period, the company’s supply increased by 19 per cent to 23.6 lakh tonnes from 19.8 lakh tonnes.
49% jump in production in South-East Asia
Tata Steel South-East Asia’s production rose 49 per cent to 5.9 lakh tonnes from 3.9 lakh tonnes. During this, the supply increased by 50 percent to 6.3 lakh tonnes from 4.2 lakh tonnes.
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