Shares of Tata Steel: tata steel share price They are down more than 33 percent from their 52-week high and have touched near their 52-week low of Rs 991.80 on NSE. Tata SteelK share price today opened lower by around Rs 15 per share and hit a low of Rs 1010.65 on NSE, which is about Rs 20 away from 52-week low. However, the steel stock has performed well in terms of financial performance during the financial years 2020-2021 and 2021-2022, in which it doubled its gains on firm steel prices.
Experts have attributed the decline in metal prices to around 25 per cent in the past few months to the excise duty imposed. He said that after the government India With excise duty imposed on steel exports, they are not going to get as much business abroad as they used to get in the last few years. Besides, the monsoon season is fast approaching in which the demand for metal products is likely to decline further. Hence, Tata Steel expects Q1FY23 earnings to be lower as compared to Q4FY22 numbers. He expected further weakness in the stock in the next 2-3 months.
Puneet Patni, Equity Research Analyst, Swastik Investmart Ltd., said: “Tata Steel Ltd. is facing a double whammy of falling realizations and rising raw material prices, and as if that is not too bad, the Indian government has cut 15% of exports. Announced duty on finished steel products.This has led to a big sell-off in the steel sector and Tata Steel Ltd has seen a 35% improvement from its 52-week high.
Should you buy dip?
Ravi Singhal, Vice Chairman, GCL Securities said: “As we can see the stock is under a lot of pressure after the government reduced the tax on import duty of steel. Still, we think it may go further down to 800 level.” Singhal further added that some things to be noted is that China is unlocked and China’s stimulus package is able to keep the commodity price up. Therefore, our recommendation is to try to deposit between 900 to 800. Stop loss at 700, target 1270 to 1370, he said.
Experts further said that the medium to long term outlook remains positive as domestic demand remains positive on the back of government infrastructure spending, private capex revival and rising housing demand. In addition, China has decided to reduce steel production over the next decade to comply with carbon emission norms and developed nations are focusing on climate change and reducing coal-based steel production and green steel production. Hydrogen is planning to increase further. Carbon based steel. Curbing steel production by China and increasing focus on green steel by developed countries will reduce global steel supply in the coming years, creating a huge opportunity for Indian steelmakers to meet the supply deficit. Indian companies have competitive advantages in terms of good availability of low cost iron ore and cheap labor.
Patni said: “Investors can hold this stock for the medium to long term, but the near-term outlook depends on how long the export duty lasts.”
The views and investment suggestions of experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decision.
read all breaking news , today’s fresh news And IPL 2022 Live Updates Here.