Tata steel ltd business Profile:
Tata Steel Ltd. is one of the largest companies in India in the steel sector. Tata group companies have given multibagger returns to shareholders. If we check the prices of March 2020, Tata Steel was trading in the price range of 270rs then 280rs, after that the share of Tata Steel made a 52 week high of 1534rs in 18 months. If an investor would have bought the share of Tata Steel on March 2020 even at 280rs, then today that investor would have returned a net worth of 6 multiples. If talking about the business of Tata Steel, the company has a diversified business. Out of these the company's business is in the manufactures of ball bearings, steel wires, hand tools, tubes & chrome mines segments. Apart from these businesses, Tata Steel also deals in Steel, Ferro Alloys and Minerals business.
Investors have a lot of trust in Tata Group companies, so we will talk about today's Tata Steel business in a brief. We will analyze the share price of Tata Steel along with the technical price levels of Tata Steel share price and find what could be the short term and long term price targets of Tata Steel.
With the face value of 10rs Tata Steel stock is trading at around 1297 Rs. If they will talk about the industry p/e then its is recently 14 and Tata Steel stock is trading at 7p/e. Tata Steel Reports Earning Per Share Nearby 185 & Market Cap of the Tata Steel Company is more than 146,190. Book value of the company is more than 680 & stock is trading at 19 price to book value. Adjusted 52 week low is 358rs & 52 wk high is 1534.50rs If we will do Analysis Of Tata Steel Shares then we Will find that Stock Price is Trading at Reasonable Values but Sometimes It Feels like Current Valuations are too High. The management of the company is very strong but the stocks prices get overpriced very often in the bull markets. Looks like Tata Steel, Long term investors should book a small profit and re-buy at lower levels. Tata steel is a portfolio stock for long term investors.
Tata steel stock fundamental analysis:
If we look at the company results, in June 2020, Tata Steel has reported sales of more than 24,000 cr and in June 2021 the company has registered sales of more than double. The total sales of Tata Steel in June 2021 has been more than 53,2 00 cr. While Tata Steel Company was showing Net Loss in June 2020 which was more than -4,660cr but in June 2021 the company has shown Net Profit which is 9,640cr. Total Debt on Tata Steel Company is more than 28,080.If the company has made profit after loss, then it is reflected in the share price. Now a question must be coming in the long term investor. Should You Buy and Sell Tata Steel Shares? Let us now find the short term & medium term targets of Tata Steel as per the technical charts. Should you hold or sell Tata steel share?
Technical analysis of Tata steel Stock:
If we will check the technical charts of Tata steel then it is clearly in uptrend. Also Indian stock market is in the grip of the bulls. Therefore in this article, we will give both sides of price levels in Tata steel stock. you have to strictly follow the stop loss & buy or sell levels which we will discuss now .
Buy Tata Steel share (if):
Fresh buying in Tata steel stock is not recommended to traders. If Traders want to make fresh buying positions then they should wait for the price levels of 1330rs or 1335rs. if in coming days, Tata steel share cross 1330rs to 1335rs price levels then It will again enter into buying territory for fresh traders with the short term Targets of Tata steel will be 1350, 1363, 1380, 1395, 1408, 1422, 1445, 1460rs + or may be higher but need to follow strict stoploss of stop loss of 1318 or 1315rs . Again repeating my words that targets may comes only if Tata steel share will give closing above 1330rs or 1335rs price levels. Try to book profit on every rise and raise your stop losses with every up price movement. For long term investors 1200rs should be the stoploss for Tata steel stock on closing basis. It is always good to book the profit and protect the money. Every stock gives better opportunity for buying after profit booking in the market.
Tata steel share sell (If):
If in coming days Stock of Tata steel break the price levels of 1270rs or 1265rs then keep stoploss of 1298 or 1302rs on closing basis and traders may create fresh short sell positions in Tata steel stock. On lower side Tata steel stock price targets will be 1250, 1235, 1222, 1215, 1205 or 1198rs. Profit booking in the Tata steel stock should come in the coming days; Stock has already come down from 1535rs higher levels but if Tata steel stock will not sustain around current price levels of 1298rs or 1300rs price levels then more profit booking is expected.
Furthermore, If Tata steel stock price break the price level of 1198rs or 1195rs in coming days or weeks then we may see sharp selloff in the Tata steel stock which may drag the stock price up to 1170rs, 1150rs, 1135rs, 1122rs, and 1110rs levels in the coming weeks or months. But condition is applied to come these levels. it required to break given price levels . Otherwise stock may show recovery very fast. Therefore it is advisable to keep strict stoploss and book profit as per your comfort level.
In nutshell, we can say that Tata steel is a good company for long term investors but at current valuations, stock price looks not much attractive if profit booking comes into the market then we may see more profit booking in Tata steel too. It is better book profit and try to add the stock at the lower price levels otherwise you may follow the stoploss.
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