Karvy Stock Broking Limited has maintained ‘Buy’ rating on Tata Steel stock with an intraday target of Rs 610.
According to Karvy, day traders can purchase the stock above Rs 592 with a strict stop loss of Rs 585. The stock pricing becomes more attractive, and reach above Rs 613, if the stock market remains on positive track.
Shares of the company, on Tuesday (July 29), closed at Rs 584.30 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 1667306. Current EPS and PE Ratio stood at 64.14 and 9.64 respectively. The share price has seen a 52-week high of Rs 969.80 and a low of Rs 469.04 on BSE.
The outlook for the stock is very strong, and it will really outperform the stock market today.
The stock will achieve the target price as the company has forceful expansion plans and strong operating capabilities.
The company has informed that a meeting of company’s directors will be held on July 31, 2008, inter alia, to take on record the Audited Financial Results of the Company for the three months period ended June 30, 2008 (Q1).
Tata Steel expects to recommence construction work for its six million tons integrated greenfield steel plant at Kalinga Nagar in Orissa by July-end.
The company has already placed orders for construction equipments worth Rs 60 billion and these equipments will be sourced from China, Germany and from domestic suppliers.
Tata Steel also informed that the capacity expansion of its Jamshedpur steel facility is on track and will be finished by September-end.
The commissioning of third caster and the vessel upgrade at LD Shop number 1 is as per agenda and will be accomplished by end of September 2008.
Moreover, the company is planning to get hold of an iron ore mine in Western Australia to feed Anglo-Dutch steel manufacturer Corus.
Tata Steel is also in search of iron ore mines in South Africa and Australia among other geographies.
The company also has plans to set up a company overseas for consolidating its raw material assets and raise funds in the next 6 to 12 months for acquisitions.
Other stocks from the same sector that looks good for short-term as well as long-term trading includes SAIL, JSW Steel and Visa Steel.