Morgan Stanley has reiterated an Underweight rating on Tata Steel, reducing its target price to ₹125, well below the current market price of ₹150.95. The brokerage cited weaker-than-expected realizations in Q4FY25 and limited near-term upside.
For the quarter, Tata Steel reported a standalone EBITDA of ₹6,980 crore, which was 3% below Morgan Stanley’s estimate, impacted by lower realizations. However, improved raw material costs provided some support.
Consolidated EBITDA stood at ₹6,560 crore, broadly in line with the firm’s forecast. The company reported a consolidated PAT of ₹1,300 crore, which included an exceptional loss of ₹390 crore related to an employee separation scheme.
On the balance sheet front, net debt declined from ₹85,800 crore in the previous quarter to ₹82,600 crore, reflecting prudent capital allocation and better working capital controls.
The company also declared a dividend of ₹3.60 per share for the financial year, rewarding shareholders despite challenging market conditions.
Morgan Stanley maintained its cautious stance, pointing to soft pricing trends and global demand headwinds, while adding that further rerating will depend on improved profitability and clearer visibility on earnings recovery.
Disclaimer: This article is strictly informational and based on brokerage commentary and company disclosures. It does not constitute investment advice. Business Upturn and the author make no recommendation regarding any stock mentioned.
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