Tata Steel, SAIL, JSW Steel shares slip up to 4%: Check target prices post Q4 results

Shares of Tata Steel Ltd, Steel Authority of India Ltd (SAIL) and JSW Steel Ltd slipped in Monday's trade. At last check, Tata Steel was down 4.11 per cent at Rs 207.90. SAIL fell 0.65 per cent at Rs 191.10, while JSW Steel shed 0.35 per cent to Rs 1,274 level.

Tata Steel, SAIL and JSW Steel recently traded near their 52-week highs, supported by a strong rally in the metal index last week.

Meanwhile, these companies recently announced their fourth-quarter (Q4 FY26) results. Here's what Nuvama Institutional Equities said:

Tata Steel

"Tata Steel (TATA) posted in-line Q4 FY26 adjusted EBITDA (standalone) of Rs 9,430 crore (our estimate: Rs 9,350 crore), up 19 per cent QoQ, and EBITDA/t of Rs 15,245 (up Rs 2,155/t QoQ) driven by higher steel prices. Netherlands operations' profitability was down, whereas UK losses declined. Consolidated adjusted EBITDA rose 20 per cent QoQ to Rs 9,950 crore," the domestic brokerage said.

"We expect Q1FY27 EBITDA/t to increase by ~Rs 2,600/t QoQ amid higher prices, offset by higher RM cost and lower volume. Europe operations may slip into losses in Q1 due to lower profits from Netherlands. We increase FY27E/28E EBITDA by 9 per cent/6 per cent to factor in higher steel prices. TP (target price) revised to Rs 209 (from Rs 189) on 7x India and 5x Europe FY28E EV/EBITDA; 'HOLD'. Trades at 6.8x FY28E EV/EBITDA," Nuvama added.

SAIL

"SAIL reported better-than-expected Q4 FY26 with adjusted EBITDA of ~Rs 4,400 crore (our estimate: Rs 3,920 crore), up 92 per cent QoQ, and adjusted EBITDA/t at Rs 8,282, up Rs 3,817/t (our estimate: Rs 7,085/t). The beat was due to lower RM cost. Earnings were driven by higher prices, partially offset by higher other expenses," the brokerage stated.

"Q1 FY27E EBITDA/t to increase by ~Rs 1,000 QoQ on higher steel prices, partially offset by higher coal cost and lower volume. SAIL has embarked on an expansion plan, leading to net debt rising 52 per cent over FY26–28E. We factor in higher steel prices, leading to EBITDA increase of 28 per cent/10 per cent for FY27E/28E. We raise TP to Rs 139 (earlier: Rs 111) at 6.5x FY28E EV/EBITDA; 'REDUCE'. Trades at 8.3x FY28E EV/EBITDA," it added.

JSW Steel

"JSW reported better-than-expected consolidated adjusted EBITDA of Rs 9,250 crore (our estimate: Rs 8,430 crore), up ~40 per cent QoQ, driven by higher steel prices and volume growth, partly offset by higher RM cost. Indian operation's adjusted EBITDA was Rs 9,110 crore, up ~40 per cent QoQ, while adjusted EBITDA/t increased to Rs 11,622 (up Rs 2,837 QoQ)," Nuvama said.

"We expect Q1FY27E EBITDA/t to rise by Rs 800–1,000 QoQ amid higher steel prices, offset by higher cost. JSTL will add ~17mtpa steel capacity by FY30 at an investment of ~Rs 1,26,200 crore. We deconsolidate Bhushan Power. We increase FY27E/28E EPS by ~12 per cent/18 per cent factoring in higher margins. We have a TP of Rs 1,129 (earlier Rs 1,057) at 9.5x FY28E EV/EBITDA; 'REDUCE'. Stock trades at 10.6x FY28E EV/EBITDA," the brokerage also said.