Buy Tata Steel, target price Rs 150: Axis Securities

Axis Securities has a buy call on Tata Steel with a target price of Rs 150. The current market price of Tata Steel Ltd. is Rs 132.6. Tata Steel, incorporated in 1907, is a Large Cap company with a market cap of Rs 158765.55 crore, operating in Metals - Ferrous sector.

Tata Steel's key products/revenue segments include Steel & Steel Products, Others, Power and Other Operating Revenue for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 53869.33 crore, down -1.16% from last quarter Total Income of Rs 54503.30 crore and down -3.01 % from last year same quarter Total Income of Rs 55539.77 crore. The company has reported net profit after tax of Rs 248.51 crore in latest quarter.

The company's top management includes Mr.N Chandrasekaran, Ms.Bharti Gupta Ramola, Mr.Farida Khambata, Mr.Deepak Kapoor, Mr.Shekhar Mande, Mr.N Chandrasekaran, Mr.Noel Naval Tata, Mr.T V Narendran, Mr.Koushik Chatterjee, Mr.Saurabh Agrawal, Mr.V K Sharma, Ms.Bharti Gupta Ramola, Mr.Farida Khambata, Mr.Deepak Kapoor, Mr.V K Sharma, Mr.Saurabh Agrawal, Mr.Noel Naval Tata, Mr.T V Narendran, Mr.Koushik Chatterjee, Mr.Saurabh Agrawal, Mr.V K Sharma, Ms.Bharti Gupta Ramola, Mr.Farida Khambata, Mr.Deepak Kapoor, Mr.Shekhar Mande, Mr.N Chandrasekaran, Mr.Noel Naval Tata, Mr.T V Narendran, Mr.Koushik Chatterjee, Mr.Shekhar Mande. Company has Price Waterhouse & Co Chartered Accountants LLP as its auditors. As on 31-12-2024, the company has a total of 1,248 crore shares outstanding.


Investment Rationale
Navin Fluorine's revenue to grow 18.3% YoY (17.4% QoQ) to Rs 7 billion in Q4FY25E. HPP segment?s revenue to grow 10.5% YoY (7.3% QoQ) to Rs 3.3 billion on higher offtake by R-32. Specialty chemicals? revenue to grow 5.2% YoY (22.3% QoQ) to Rs 2.7 billion. CDMO revenue to grow 136% YoY/43.4% QoQ to Rs 1.1 billion. EBITDA margin may improve 100bps QoQ to 25.3%. EBITDA/adj. PAT may grow 63.6%/46.2% YoY to Rs 1.8 billion/Rs 1 billion.


Promoter/FII Holdings
Promoters held 33.19 per cent stake in the company as of 31-Dec-2024, while FIIs owned 18.53 per cent, DIIs 23.38 per cent.