Tata Steel opens 1% higher after impressive operating profit in Q3 earnings

Tata Steel Ltd experienced a 1 percent surge in its stock on January 25, driven by a robust consolidated operating profit, despite challenges in its European business. The stock opened at Rs 136 on the BSE at 9:22 am, marking a 1 percent increase from its previous close.

Analysts are eagerly anticipating the conference call scheduled for later in the day, post 12:30 pm, to delve into the details of the commendable earnings report.

Advertisement

Brokerage firm Morgan Stanley has issued an ‘equal weight’ call, maintaining the target price at Rs 120. In contrast, CLSA has given an ‘outperform’ call, with a target price set at Rs 145 per share.

The domestic EBITDA surpassed expectations, driven by heightened realizations and cost improvements. Indian EBITDA exceeded estimates by 15 percent, reaching Rs 8,300 crore, while consolidated EBITDA stood at Rs 6,260 crore, surpassing analysts by 35 percent and consensus by 8 percent. The stellar performance of ‘other’ domestic businesses compensated for the challenges faced in the European market.