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Tata Steel, one of the top three steel-producing companies in India, saw its stock price fall by 3% following the release of its Q4 FY24 results. The steelmaker’s profit and revenue missed Street expectations, leading to a decline in share value for the fifth consecutive day. On Thursday, May 30, Tata Steel stock plummeted by 6.2% to a day’s low of Rs 163.35 on the NSE, closing at Rs 165.2, down 5.19%.
The company reported a consolidated net profit of Rs 611.5 crore for the quarter ended March 31, a significant decrease of 64.1% from the previous year. Revenue for the same period stood at Rs 58,687.3 crore, down from Rs 62,961.5 crore a year ago.
Jefferies has maintained a buy call on Tata Steel, setting a target price of Rs 200 per share, indicating a potential upside of nearly 15%. However, Morgan Stanley has retained an equal-weight rating on the stock, with a target of Rs 135 per share. Despite the disappointing results, Tata Steel has recommended a dividend of Rs 3.6 per equity share for FY24, with the final dividend record date set on June 21, 2024.
Additionally, the company approved the issuance of up to Rs 3,000 crore worth of non-convertible debentures (NCDs) on a private placement basis. Tata Steel shares have yielded investors a 62.5% return over the past year, outperforming both the Nifty and Nifty Metal indices.
Investors are advised to carefully consider their options in light of these results and analyst recommendations. For more in-depth coverage of business news, visit HeadlineFly.com.
