Morgan Stanley has maintained its ‘Overweight’ rating on Tata Steel with a target price of ₹200, implying an upside of about 20% from the current market price of ₹166.40. The brokerage’s positive stance follows a series of strategic approvals by Tata Steel’s board aimed at strengthening raw material security and expanding domestic capacity.
In its latest note, Morgan Stanley highlighted that Tata Steel’s board has approved the acquisition of a majority stake in TPPL for approximately ₹6.4 billion. The deal is expected to provide Tata Steel with greater security of iron ore pellet supplies in India, a key input that supports operational stability and cost control.
The brokerage also pointed to Tata Steel’s memorandum of understanding with LMEL, under which the two companies will partner across iron ore mining and logistics. The collaboration covers areas such as slurry pipelines, pellet production and steelmaking, and is seen as a step toward improving integration and efficiency across the value chain.
In addition, the board has approved an expansion of NINL capacity by 4.8 million tonnes per annum, among other announcements. Morgan Stanley said the expansion underscores Tata Steel’s continued focus on scaling its domestic footprint and strengthening its long-term growth platform.
Overall, Morgan Stanley believes these initiatives enhance Tata Steel’s raw material security, improve supply chain resilience and support earnings visibility over the medium term, underpinning its target price of ₹200.
Disclaimer: This article is based on a brokerage report by Morgan Stanley. The views expressed are those of the brokerage and are provided for informational purposes only. This content does not constitute investment advice or a recommendation to buy or sell any securities.