Tata Steel Intraday Buy Call

Tata SteelTechnical analyst Pradeep Surekha is bullish on Tata Steel Limited and has recommended 'buy' rating on the stock with intraday targets of Rs 632 and even 638.

According to analyst, the stock can be purchased with a stop loss of Rs 614.

The stock of the company, on Nov 22, closed at Rs 623.20 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 80.87 and 7.65 respectively.

Tata Steel, the world's seventh biggest steel manufacturer, said that its consolidated net profit for the September quarter of FY11 stood at Rs 1,968 crore.

The steel major makes over 70% from its European biz, Corus, which it bought in the year 2007 for about $13 billion, and the rest from the Indian market plus other south-east Asian nations.

The company's board attributed the development to a blend of volume plus increase in value and benefits from part sale of its investment portfolio.

The company has registered a consolidated loss of Rs 2,720 crore during the same period of 2009.

Net sales of the company increased 11% to Rs 28,091 crore as against Rs 25,276 crore.

Other income also witnessed a major growth to Rs 814 crore as against Rs 18 crore during the three month period ended September 30.

The company disinvested its holding interest in Malaysia's Southern Steel for $72 million and sold a few scrips in a some of Tata Group firms.