Tata Steel shares rise for third session, hit record high; what's next?

Tata Steel share price today: Shares of Tata Steel hit a record high with the metal stock rising for the third straight session today. Tata Steel  shares rose 3.49% to a peak of Rs 177.85 on BSE. Market cap of the firm stood at Rs 2.19 lakh crore. Total 59.25 lakh shares changed hands amounting to a turnover of Rs 104.38 crore on BSE. The Tata Group stock has a one-year beta of 1.4, signaling high volatility during the period. 
 
The stock is trading lower than the 100 day, 150 day, 200 day but higher than the 5 day, 10 day, 20 day, 30 day and 50 day moving averages. In a year, the stock has risen 10.47%. 

The relative strength index (RSI) of Tata Steel stock stands at 57.5, signaling it's trading neither in the overbought nor in the oversold zone. 

PL Capital has retained its ‘Accumulate’ stance on the metal stock. The brokerage has revised its target price to Rs 181 from Rs 177 earlier. 

The domestic brokerage has a meeting with Tata Steel’s management to understand the company’s expansion roadmap and the current demand environment. The Tata Steel management reaffirmed its target to reach 40 million tonnes per annum (mtpa) capacity over the next five years. The Kalinganagar Phase-II (KPO-II) ramp-up is on schedule, with the CRM and finishing lines set for commissioning in Q2FY26, adding volumes over the next two years. 

Tata Steel stock is among JP Morgan's top pick in the metals and mining sector.

Tata Steel’s Ebitda, meanwhile, is likely to rise 15 per cent QoQ on the back of higher volumes, smaller declines in steel prices, and stable European earnings.

The brokerage expects Tata Steel to benefit from rising automotive demand, upcoming capacity expansion at Neelachal, and India’s extended steel safeguard duties. Potential reductions in EU steel import quotas and tariff hikes could also boost European prices, supporting Tata Steel’s margins. The brokerage raised Tata Steel’s target price to Rs 195 from Rs 180. 

 Brokerage Motilal Oswal has a neutral stance on the stock with a price target of Rs 180. The large cap stock is trading at 7.6 times EV/EBITDA and 4.1x FY27E P/B. "We believe that all the positives are well priced in," said the brokerage.