Shares of Tata Steel hit a record high on Monday after the Tata Group firm reported Q3 earnings, which met street estimates. Tata Steel stock gained 3% to hit a high of Rs 203 in early deals against the previous close of Rs 197.05. Market cap of the firm stood at Rs 2.5 lakh crore.
In a decent rally, the stock has gained 10.20% this year. The Tata Group stock trades higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages indicating that the stock is in a bullish zone.
The relative strength index (RSI) of Tata Steel stood at 60.8 signaling it’s trading neither in the overbought nor in the oversold zone.
Brokerage Motilal Oswal expects bright outlook for the firm due to the recent rise in steel prices.
It has a buy call on the stock with a price target of Rs 240, a 22% upside to the previous close.
The EBITDA came in line at Rs 7730 crore (+3% YoY/-5% QoQ). This translated into an EBITDA/tonne of Rs 12,800/tonne vs. the brokerage’s estimate of Rs 13,112/tonne.
“Though there are near-term uncertainties related to price volatility due to trade barriers (CABM, tariffs, and import quota reduction), the long-term outlook remains strong for TATA. We raise our FY26E earnings (EBITDA by over 2% and PAT by over 3%), fueled by the better volume and NSR outlook. We also marginally raise our EBITDA for FY27E by 2% to reflect the improved outlook on pricing and costs. At CMP, TATA is trading at 7.4x FY27E EV/EBITDA. We reiterate our BUY rating with a revised SoTP-based TP of Rs 240 on Sep’27E,” said the brokerage.
YES Securities has an add call on the stock post Q3 earnings. It has raised price target on the Tata Group stock.
“We expect Tata Steel to deliver a Revenue, EBITDA and RPAT CAGR of 4.4%, 20.5% and 85% respectively, over the FY25–28E period, led by volume growth in India, strong domestic steel prices, operating leverage, and ongoing cost takeout programs. We value the company on a SOTP basis, assigning an 8x FY28E EV/EBITDA multiple to the Indian business and a 5.5x multiple to the European operations, arriving at our revised target price of Rs 217/share (earlier 194/share),” said Yes Securities.
On Friday, Tata Steel reported a 723% rise in net profit for the quarter ended December 2025. Net profit of the Tata Group firm came at Rs 2,688.70 crore in Q3 compared to Rs 326.64 crore in the corresponding period of the previous fiscal. Revenue from operations came at Rs 57,002 crore in the third quarter rising 6.25% compared to Rs 53,648 crore in the corresponding period a year ago.
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