TataSteel: CMP: 1088 [ Sales Gr: 5% | Profit Gr: 6X]
The Largest from Iron & Steel Sector. Sales of around 1.5 Lakh Cr Globally and was making losses for many years. There was demand in this industry as growth was good, but Profitability was not there due to high Debt of around 1 Lakh Cr. Hence, if invested a decade back in TataSteel Return are just 2X and with in-consistent Dividends. Current Year sales have grown by 5% and Profitability are good with the growth of 6X. TataSteel again with the margin of 5% after long time due to favorable raw material cost this year. We have also preferred Jswsteel better then TataSteel.
Yet those holding TataSteel since long time should now not disturb their investments. New addition near 884 could be done during any fall while short term targets for this year could be 1352. We may see TataSteel move in the range of 1352 to 884.
Disclosure: Do Not Buy or sell before consulting your advisor as the writer may have the position in the above-given stocks or indices