Tata Steel Q2 results fail to impress Street; here is what Morgan Stanley highlights

Tata Steel Q2: Zee Business Managing Editor Anil Singhvi suggests selling Tata Steel futures for targets of Rs 112, Rs 109 and Rs 107 on the downside with a stop loss at Rs 118.

Tata Steel Q2 results: Tata Steel shares remained under pressure on Thursday. Image: Reuters

Tata Steel share price target, Tata Steel share price NSE, Tata Steel Q2 results: Tata Steel shares remained under pressure on Thursday, November 2, falling for a fourth straight session, after the Tata group steelmaker staged an overall weak financial performance for the second quarter of the current financial year. The Tata Steel stock declined by as much as Rs 2, or 1.7 per cent, to Rs 114.6 apiece in morning deals on NSE. At 9:32 am, Tata Steel shares traded 0.6 per cent lower at Rs 116 apiece on the bourse.

Tata Steel Q2 earnings: Key things to know

After market hours on Wednesday, the alloy-making giant reported a consolidated net loss of Rs 6,511.2 crore for the quarter ended September 30, 2023, in stark contrast to a consolidated net profit of Rs 1,297.1 crore for the corresponding period a year ago.

Its total income declined to Rs 55,910.2 crore for the July-September period from Rs 60,206.78 crore a year ago. Read more on Tata Steel Q2 results

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EDITOR’S TAKE | Weak Q2 results on all fronts

Zee Business Managing Editor Anil Singhvi suggests selling Tata Steel futures for targets of Rs 112, Rs 109 and Rs 107 on the downside with a stop loss at Rs 118. The steelmaker’s revenue as well as margins fell short of expectations, the market wizard pointed out.

Tata Steel share price target: What analysts say about Tata Steel Q2 results

Morgan Stanley maintained an ‘equal-weight’ rating on Tata Steel after the private sector steel major’s earnings announcement, with a target of Rs 115 for the stock. The brokerage’s target suggests a discount of 1.4 per cent to Wednesday's close.

Morgan Stanley pointed out that the European business remains a drag for Tata Steel, though its domestic EBITDA was ahead of estimates.

The impact of lower realisations was more than offset by lower other operating expenses whereas its consolidated EBITDA was in line with estimates, as the European business remains an overhang, Morgan Stanley added.

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