Buy Tata Steel

Buy Tata SteelKarvy Stock Broking Limited has maintained ‘Buy’ rating on Tata Steel stock to achieve a target of Rs 232 within 1-2 days.

According to Karvy, day traders can buy the stock between Rs 216-218 with a stop loss of Rs 212.

Shares of the company, on Friday (March 21), closed at Rs 223.50 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 67.73 and 3.12 respectively. The share price has seen a 52-week high of Rs 925 and a low of Rs 146.35 on BSE.

With a little more than a year to go before the planned commissioning of Dhamra port, the promoter, Dhamra Port Company Ltd (DPCL), a joint venture of Tata Steel and Larsen & Toubro, is thinking over signing cargo deals with potential users of the port.

The first such contract is to be signed soon with Tata Steel.

Tata Steel on March 10, declared that the production cut at its UK-based division Corus continues to be around 40 percent.

Tata Steel is likely to save 600 million pounds (USD 831.48 million) by March.

The company`s cost saving trials is on target at Corus in proportion to the objective.

Tata Steel posted a 47% increase in sales during February 2009 as against the sales in the same period of the last year.

In February 2009, fabrication of hot metal, crude steel and saleable steel rose by 19%, 12% and 21%, respectively as against the corresponding period of the last year (2008).

Steel Authority of India Ltd. and Tata Steel Ltd. said that steel sales are expected to go up in the quarter through March on the back of increasing demand from key sectors, including automobiles and construction.

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.