TATA STEEL- A Good Bet!

TATA STEEL, a well know steel maker in India. Looks like the business made a turnaround in recent times. Tata Steel Ltd.’s efforts to turn around its U.K. operations and a recovery back home are beginning to pay off.

tata-steel
Fundamentals:

Tata Steel is currently has the cheapest valuation among other steel makers like JSW Steel, Jindal Steel, SAIL etc. It’s currently trading 1.75 times to its book value. Compare to JSW steel of 2.60 times to its book value. The company OPM has nearly doubled over the previous quarter from March 7.7% to June 14.7%. The company also made a turnaround in its PAT which is 921.09 Cr for June Quarter compare to its previous quarter in March which was negative around (1168.02 Cr). The other income part nearly half from 261 Cr to 161 Cr from March Quarter to June Quarter. Well it’s a good thing from a business that it’s now earning from its main operations.

Capture

Technical:
TATA STEEL has given a rounding-bottom breakout from the levels of 600 recently. In AUG-SEP 2104 it had made a high of 573 & after 3 years it has given a break out from that levels on AUG-SEP 2017. In Quarterly charts volume covered nearly 50% from the previous Quarter with increase in price & given breakout from the levels of 600. Current it’s trading around 655, the near term target of the stock is 770 levels & then 930 levels in coming months. One should maintain a strict Stop Loss of 560. In Quarterly charts RSI is around >50 & <70 at 62.9. The stock will be in growing momentum.
Hence we can see the stock has a potential upside in coming days.
Capture1

Disclaimer: The purpose of this company analysis is related study & understanding the company & it’s financials. No profit or losses are guaranteed. Do make your investments on your choice. Trade at your own risk.

Advertisements

One thought

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.