Technical analyst Ashutosh Sarna maintained 'buy' rating on Tata Steel Limited stock with a target of Rs 653.

According to analyst, the stock can be purchased between Rs 640-627 with a stop loss of Rs 624.

The stock of the company, on Feb 18, closed at Rs 637.95 on the Bombay Stock Exchange (BSE).

The share price has seen a 52-week high of Rs 737 and a low of Rs 448.65 on BSE.

Current EPS & P/E ratio stood at 78.28 and 8.11 respectively.

Tata Steel is making attempts to raise output as well as sales of high-end automotive steel to fulfill the rising demand from local plus abroad auto manufacturers.

Tata Steel managing director HM Nerurkar stated, "Anticipating almost 20% growth in the automotive sector we have adopted a three-pronged approach to grow the business. Firstly, production of more high-end steel products; secondly, sale of more skin panels and other automotive steel and lastly, ensuring optimum quality for the auto sector."

Out of its total projected domestic sales of more than 6 million tonne per annum (mtpa), Tata Steel has decided to sell around 1 million tonne per annum to the automotive segment by 2011 end.

After its Rs 3,477 crore FPO, the company has bagged commitments from shareholders to lift up around Rs 3,000 crore via a private placement of NCD, in two parts.

Mr. Koushik Chatterjee, Group CFO, Tata Steel stated, "The interest rate for this Rs 3,000 crore NCD will be a ballpark of 9-9.75 per cent and it will mature after 20 years."

A portion of this assured promise had been lifted during the last month for the Jamshedpur project and will carry on as and when the need takes place.

Tata Steel is now eyeing loan products, which would offer it a flexibleness to repay over a long period of time, if possible 20 years.