Tata Steel Share Price can go down to Rs 147, know what is today’s high level
Tata Steel’s share price performance today has been a topic of interest for many investors. As of September 16, 2024, the stock opened at ₹152.00 and has shown some fluctuations throughout the day. The current trading price stands at ₹150.98, reflecting a decrease of approximately 0.77% from the previous close of ₹152.15. This decline is part of a broader trend, as Tata Steel’s share price has fallen by about 4.77% over the past month.
Main Points
Today, Tata Steel’s share price has ranged between ₹149.00 and ₹152.00. The stock’s trading volume has been quite active, with over 39 million shares exchanged. This level of trading indicates significant interest among investors, despite the recent downturn in price.
The market capitalization of Tata Steel is currently around ₹188,201 crores, making it one of the prominent players in the steel industry. The company’s price-to-earnings (P/E) ratio stands at a concerning -45.71, indicating that it is currently not generating profits relative to its share price. The earnings per share (EPS) is also negative at -3.29, reflecting the challenges the company has been facing in terms of profitability.
From a technical perspective, Tata Steel is trading below its 50-day moving average (DMA) and is close to its 200 DMA. This positioning suggests that the stock may face resistance in breaking through these levels in the near term. Analysts suggest that for Tata Steel to regain upward momentum, it needs to surpass the 50 DMA and maintain its position above this level.
Key Support and Resistance Levels:
- Support Levels: ₹149.00 (recent low), ₹148.00 (psychological support)
- Resistance Levels: ₹152.00 (recent high), ₹155.00 (next resistance)
These levels are crucial for traders looking to make informed decisions. If the stock can hold above ₹149.00, it may indicate a potential reversal. Conversely, a drop below this level could lead to further declines.
The market sentiment surrounding Tata Steel has been mixed. On one hand, the company has been recognized for its efforts to transition its Port Talbot facility in the UK from a blast furnace to an electric arc furnace. This move is supported by a significant $500 million grant from the UK government, aimed at modernizing operations and reducing carbon emissions.
On the other hand, the steel industry is facing headwinds due to fluctuating global steel prices and increased competition from Chinese exports. The World Steel Association has projected that India’s steel demand will rise, but the immediate outlook remains cautious due to the impact of the monsoon season and the potential for weaker steel prices.
Analysts from Antique Stock Broking have recommended Tata Steel as a “buy” with a target price of ₹180, citing the company’s strong market presence and greater raw material integration. However, they also caution that the September quarter might be impacted by seasonal factors and global price pressures.
Tata Steel’s financial health shows some areas of concern. The company has reported a revenue growth of -1.35% over the past year, which is a worrying trend for investors. The return on equity (ROE) is currently at -4.80%, indicating that the company is not generating returns for its shareholders.
Moreover, the company’s debt-to-equity ratio stands at 0.95, suggesting a higher leverage position. This could pose risks, especially if the market conditions do not improve.Key Financial Metrics:
- Market Capitalization: ₹188,201 crores
- P/E Ratio: -45.71
- EPS: -3.29
- Dividend Yield: 2.39%
- Debt-to-Equity Ratio: 0.95
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
