Stock market analysts have maintained ‘buy’ rating on Tata Steel stock with an intraday target of Rs 540.

According to them, interested traders can purchase the stock above Rs 535 with a strict stop loss of Rs 532. If the stock market remains positive, the stock pricing becomes more attractive, and reach above Rs 545.
 
Shares of the company, on Wednesday (Sep 10), closed at Rs 535 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 2367023. Current EPS & P/E ratio stood at 67.78 and 7.81 respectively. The share price has seen a 52-week high of Rs 969.80 and a low of Rs 532.10 on BSE.

The market analysts continue to like the company because of its exclusive business model, strong operating abilities plus its new exciting projects and healthy growth plans.

The stock has been recommended after analyzing its last performances. So traders are advised not to sell the stock before achieving the target.

The world’s sixth biggest steel manufacturer Tata Steel, on Sep 06, signed up a memorandum of settlement with the Tata Workers’ Union for annual bonus for the last fiscal (2007-08) that would translate to a payout of Rs 1.14 billion.

The twelve-monthly bonus would be computed on the basis of 50% on production and 50% on profitability and figures out to 19.26% of salary/wages paid during the last year (2007-08).

The company is looking at acquiring iron ore deposits in Laos for which it has already began exploring some mines in Communist-ruled Laos.

For the three months period ended June 30, 2008, Tata Steel has registered a 60.43% growth in its profit after minority interest and share of profit of associates of Rs 39,009 million, as against Rs 24,315 million during the same period of the last year (June 30, 2007).

The company’s total income grew 39.18% to Rs 435,609.60 million from Rs 312,963.50 million during the corresponding period of the last year.

The consolidated financial outcomes consist of the consolidated financial results of Tata Steel UK and its arms whose income makes up 74% of the consolidated total income.

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.