Invest in or sell Tata Group’s Steel Giant at a ratio of 1:10 split, 1:2 bonus, and 29 dividends?

On March 20, Tata Steel Ltd., the massive Tata Group company that produces steel products, reported a significant adjustment. The stock fell more than 3% overall in a single day, closing down on Rs 145.70 levels. The result follows the company’s announcement of its non-convertible bond offering plan to raise Rs 2,700 crore. Tata Steel’s maximum goal price per unit is Rs 170.

Tata Steel Share Price: With a market valuation of Rs 1,81,883.76 crore, Tata Steel’s shares closed at Rs 145.70 each on the BSE on March 20, a decrease of 1.98%. Tata Steel was the biggest bear on the markets during the trading day, plunging 3.2% to reach an intraday low of Rs 143.85 per share.

However, Tata Steel is trading higher than 43% from its 52-week low of Rs 101.65 per share and steadily approaching its 52-week high of Rs 159.50 per share.

In general, Tata Steel is still operating at a higher level. It has gained 3% during the last five days, and in the last month, the stock has slightly increased by 1.29%. Its six-month performance also increased by 14%. YTD, the stock is higher than 4%. Its upside is around 39% over a full year.

Tata Steel is a multibagger over the long run, having surged a massive 181% on the BSE. The current all-time gains are around 1,018%.

Tata Steel Fundraising: 2,70,000 NCDs with a face value of Rs 1 lakh each were issued, totaling Rs 2,700 crore, after consideration and approval by the company’s Committee of Directors. The NCDs are listed, rated, redeemable, unsecured, and fixed rate.

The Rs 2,700 crore NCDs issued by Tata Steel will be placed on the BSE Limited’s Wholesale Debt Market Segment.

Tata Power-To-Tata Sons, Six Group Companies Lose Up To Rs 11,369 Crore; Tata’s NBFC Drops 34% In 8 DaysTata Power-To-Tata Sons, Six Group Companies Lose Up To Rs 11,369 Crore; Tata’s NBFC Drops 34% In 8 Days

Other Corporate Affairs of Tata Steel: Dividends Tata Steel has paid dividends up to Rs 3.60 per share in the last 12 months, with a current dividend yield of 2.47%. Trendlyne data shows that from May 2001, the business has distributed up to 29 dividends.

Dividends aside, Tata Steel’s most recent corporate move was a split of its shares. In July 2022, the steel behemoth became ex-split in a ratio of 1:10. Tata Steel’s face value of Rs. 10 was subsequently reduced to Rs. 1.

Bonus Issuance: To far, Tata Steel has awarded stockholders just one bonus. In August 2004, the business produced a bonus issue with a 1:2 ratio.

Tata Steel Target Price: In general, brokerages anticipate an increase in Tata Steel’s share price. Nonetheless, CLSA has taken a cautious approach in the steel industry.

“We reiterate our cautious stance on the Indian steel sector driven by three key points,” CLSA said in its most recent research report. (1) As steel capacity development picks up speed, the profit pool in India should gradually shift towards miners (iron ore/coking coal) from converters. We predict steady state spreads in US dollars that are less than the historical norm. (2) In contrast to previous years, steel stock values have increased over the last 18 months to a standard deviation over their median; as a result, spreads are no longer at a low point, but multiples are. (3) Spread compression is not taken into account by consensus estimations. As a result, JSW Steel drops from U-PF to SELL and Tata Steel drops from O-PF to SELL.

Conversely, JP Morgan is the latest to suggest BUY. With a target price of Rs 170 per share, the global brokerage has maintained an overweight position in the firm. The prognosis is favorable. Aside from this, Tata Steel was already one of the top choices to gain throughout the election season according to brokerage FISDOM. Tata Steel has achieved Fisdom’s initial aim of Rs 155 per unit, while Fisdom’s long-term goal is Rs 170.

Additionally, HDFC Securities now views Tata Steel as a buy.