Tata Group-backed steel giant, Tata Steel, share price has witnessed a healthy buying sentiment on December 31st, taking the stock near its 52-week high of Rs 187. Overall, in the early deals, Tata Steel shares have rallied by 3%, extending their year-to-date gains by nearly 31%.
This steel behemoth, who holds a strong record of bonus issues, splits, and dividend payouts, is still hot to buy as brokers set the highest target price at Rs 210 apiece. Here’s what experts say before you enter 2026!
Tata Steel Share Price:
At the time of writing, Tata Steel stock traded at Rs 178.60 apiece, up by 1.62% on BSE with a market cap of Rs 2,22,954.29 crore. The stock rallied by nearly 3% to hit an intraday high of Rs 181, which is closer to its 52-week high of Rs 187 apiece.
YTD, the stock has zoomed nearly 31% on BSE.
It also needs to be noted that Tata Steel stock rallied even after receiving penalty order from CGST and Central Excise.
Tata Steel Penalty Order:
As per the regulatory filing, Tata Steel received an order by the Joint Commissioner of CGST & Central Excise, Jamshedpur, Jharkhand, directing the Company to pay a tax amount of Rs 890,52,10,202, penalty of Rs 890,52,10,202 and applicable interest on the total amount of tax.
It said, the company believes that proper cognizance was not taken of the submissions made by the Company while adjudicating the matter. The main issue relates to excess Input Tax Credit (ITC) identified by comparing, the ITC claimed in monthly returns as against the ITC reflected in GST Portal. As per the Company, there is no such excess ITC and difference is on account of credit pertaining to one financial year but availed in subsequent financial year which is permissible as per GST Laws.
“The Company believes that it has strong grounds on merit to challenge the demand and hence will contest the same before the Appropriate forum within the statutory timelines,” said Tata Steel.
Tata Steel Corporate Actions:
Tata Steel holds a strong record of dividend payouts and is among top dividend yield metal stock. It has also carried one bonus and one split in its history.
Tata Steel Bonus Issue:
The first time Tata Steel rewarded investors with a bonus issue was in August 2004 in the ratio of 1:2. This meant the company has rewarded 1 bonus on 2 existing shares.
Tata Steel Stock Split:
The Tata Group stock has split only once in its history. The first stock split was of 1:10 ratio with effect from July 28, 2022, where face value was trimmed from Rs 10 each to Re 1 each.
Tata Steel Dividend:
Since June 2003, the company has delivered 28 dividends, as per Trendlyne data. In the past 12 months, the metal giant delivered up to Rs 3.60 per share dividend. At the current market price, the dividend yield is at 2%.
BUY Tata Steel Stock?
The consensus recommendation from 32 analysts for Tata Steel is BUY, as per Trendlyne data. The highest target price is of Rs 210 in the short term by ICICI Direct and Motilal Oswal. While analysts at Axis Direct set Rs 195 target.
Analysts at ICICI Direct said, “We are encouraged by TSL’s capacity expansion plans aimed at achieving 40 MTPA capacity in India by 2030, along with its growing downstream portfolio and raw material integration. However, high capex intensity of these projects, could strain the B/S in the interim period. Nonetheless, we maintain our BUY rating on Tata Steel with SOTP-based target price of Rs 210 (8.5x/4x EV/EBITDA to India/Europe business on Avg. FY27-28E).”
About Tata Steel Ltd:
Tata Steel (TSL), part of the TATA group, is one of the world’s most geographically diversified steel producers with operations across regions. The company’s annual crude steel production capacity includes: India- 26.6 million ton (MT), Netherland- 7 MT, UK- 3.2 MT (upcoming), and Thailand- 1.7 MT.