Buy Tata Steel For Short Term: Nirmal Bang

Tata Steel Nirmal Bang, one of the leading equity research-cum-broking house, has recommended a 'buy' on Tata Steel stock with a short term.

The report further stated that if the counter is successful to breach Rs 515 levels, then it will hit 545.

The stock has strong support at Rs 493.

Today (Oct 07), the shares of the company opened at Rs 520 on the Bombay Stock Exchange (BSE). Current EPS and P/E of the stock stood at 61.64 & 8.42 respectively. The share price has seen a 52-week high of Rs 545 and a low of Rs 146.35 on BSE.

Tata Steel finished the second quarter on a cheerful note with a significant growth in its production and sales level as against the same period of 2008.

For Q2 FY10, Tata Steel revealed a remarkable growth in its production and sales volumes of both hot metal as well as crude steel fabrication. Hot metal was higher by 21 per cent to 1.8 million tons, while crude steel output jumped by 21 per cent to 1.6 million tons as against the same period of the previous year.

The saleable manufacture of steel, which stood at 1.5 million tons, posted a noteworthy increase of 14 per cent. It recorded 19 per cent increase in sales in Q2 FY10.

In proportion to Tata Steel's grwoth plans, the capacity augmentation of `C` blast furnace from 0.4 mtpa to 0.7 mtpa was accredited during Sep`09. It is the foremost operating blast furnace in the globe to add in Gimbal Top® technology for raw material charging system.

Besides, it posted 49 per cent increase in long product sales as against H1 FY`09.