Tata Steel shares at record high but MOSL expects bull run to continue; here's why

Shares of Tata Steel, the largest steel producer in India, are trading at record high even as the Tata Group firm announced results on Friday that reflected better operational performance in domestic and global operations. On Friday, the steel maker reported its earnings after market hours. However, the Tata Steel stock hit a record high of Rs 224.40 during the same session. The rally in the metal stock is backed by strong earnings, stellar domestic infrastructure demand, and massive structural cost savings.

In Q4, the company reported strong domestic operations, improving margins across geographies, reduced losses in the UK, and continued capacity expansions.

Tata Steel shares have risen 19% in 2026 and gained 25% in six months. The metal stock has clocked returns of 38% in a year and 101% in three years. 

However, the stock has a RSI of 58.2, which signals likely upside amid the bull run. The stock is yet to reach the overbought zone, when its RSI would cross the 70 mark. The Tata Group stock trades higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages indicating that the stock is in a bullish zone.

In the previous session, the stock closed at Rs 216.80, falling 1.97% against the previous close. Market cap of the firm stood at Rs 2.70 lakh crore. 

The Tata Group stock has a one-year beta of 1.2, signaling high volatility during the period.

At the current market price, the Tata Group stock has gained 45% from its 52 week low of Rs 149.8 reached on June 13, 2025. 

But the rally is not likely over yet. Motilal Oswal expects a 15% upside in the stock post Q4 earnings. It has assigned a price target of Rs 250 to the metal stock. 

"Though there are near-term uncertainties related to price volatility and emission challenges in Europe, the long-term outlook remains strong for TATA. We maintain our FY27/28 earnings estimates, considering better volume and an improved pricing environment," said Motilal Oswal. 

The brokerage said net profit came slightly better than its estimates. 

Tata Steel clocked a 125 percent rise in net profit at Rs 2,926 crore for the March 2026 quarter against a net profit of Rs 1,301 crore for the year-ago period. The firm declared dividend of Rs 4 per share.  

The steelmaker's revenue from operations climbed 13 percent to Rs 63,270 crore in Q4 compared to Rs 56,218 crore in Q4FY25. Earnings got a boost in Q4 due to restructuring and cost-saving operations at its Netherlands operations.

The firm declared a dividend of Rs 4 per share. The record date for the dividend is July 6, 2026.