Stock market analysts have maintained ‘buy’ rating on Tata Steel stock with an intraday target of Rs 160.

According to them, interested traders can purchase the stock above Rs 148 with a strict stop loss of Rs 140. If the stock market remains positive, the stock pricing becomes more attractive, and reach above Rs 165.
 
Shares of the company, on Tuesday (Dec 02), closed at Rs 148.65 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 1706821. Current EPS & P/E ratio stood at 75.97 and 2.13 respectively. The share price has seen a 52-week high of Rs 952 and a low of Rs 146.35 on BSE.

The stock has good potential and it can still exhibit superb surge. It will achieve the target price on the back of its healthy growth plans and well-built operating capabilities.

Tata Steel declared its consolidated second quarter numbers yesterday.

The company said firm prices, cost-control measures and an improved performance helped its July-September consolidated net profit soar 213%, bucking corporate trends that have seen lower margins due to demand contraction.

The Group has posted a net profit of Rs 47,036.40 million for the quarter, as compared to Rs 14,895.60 million in the same quarter, last year.

The company’s total income zoomed 36.17% from Rs 325,205.90 million for the quarter ended Sep. 30, 2007 to Rs 442,833.40 million for the quarter ended Sep. 30, 2008.

The company said that the actuarial gains and losses on funds of employee benefits (pension plans) of Tata Steel UK for the period from April 01, 2008 have been accounted in `reserves and surplus` in the consolidated financial statements in line with international financial reporting standards (IFRS) principles and permitted by AS21.

This action according to the company was compatible with the accounting principles accompanied by Tata Steel UK and previously by Corus Group under IFRS.

On Nov 26, Corus, Europe’s second largest steel producer and a division of the Tata Steel sold its 50% stake held in GrantRail Group to its joint venture (JV) partner, VolkerWessels.

Moreover, Tata Steel is eyeing acquisition of wire-manufacturing companies in Europe to boost capacity of Corus.

Other stocks from the same sector that looks good for short-term as well as long-term trading includes SAIL, Essar Steel and Jindal Steel.