Nirmal Bang, one of the leading equity research-cum-broking house, has recommended a buy on Tata Steel with a short-term target.

The research report further stated that, if the counter is successful to breach Rs 518 levels, then it will create a huge breakout.

The investors are advised to hold the stock to achieve a target price above Rs 562.

Furthermore, the firm has suggested a support level for the scrip at Rs 503.

Today (Sep 25), the shares of the company opened at Rs 507.95 on the Bombay Stock Exchange (BSE). Current EPS and P/E of the stock stood at 61.64 & 8.24 respectively. The share price has seen a 52-week high of Rs 545 and a low of Rs 146.35 on BSE.

Tata Steel, which has decided to establish a Rs 21,000-crore facility in Orissa's Kalinganagar, stated that the land purchasing route for the project would be finished shortly and work would begin by Dec 2009.

The company has been confronting stiff battle from local residents against purchasing land for the 6-mln-tonne yearly project.

Tata Steel posted 25 percent increase in its sales to 492,000 tons during Aug 2009 as compared to 392,000 tons in the same period of the last year.

The company finished Aug`09 by presenting a noteworthy growth in its hot metal, saleable steel as well as crude steel fabrication as against the corresponding month of
2008.

Tata Steel added that there was a 81 percent growth in the sales of long steel products in the reporting month.

During Aug 2009, the hot metal production of the company stood at 597,000 tons over the prior year period.

The company's saleable steel production surged by 14% to 526,000 tons in Aug.