On Tuesday, domestic brokerage Motilal Oswal upgraded the stock to Buy from Neutral, citing multiple growth levers in the coming quarters. Assigning a price target of Rs 210, the brokerage projected a potential upside of 15.3% from the last close of Rs 182 on the NSE.
“Tata Steel, one of the largest players in India’s steel sector, stands to benefit from improving price realizations, operational efficiencies, and a robust domestic demand outlook. The proposed safeguard duty is also expected to support better realization from domestic operations,” Motilal Oswal said in its note dated October 27.
Last week, Nomura initiated coverage with a Buy rating, highlighting five key growth drivers — strong domestic demand, rising utilization at Kalinganagar, a potential turnaround in European operations, sustained cost advantages from captive mines, and attractive valuations.
InCred Equities also upgraded the stock to Add from Reduce, raising its price target to Rs 224.
While analysts acknowledged short-term challenges amid global tariff uncertainties, they maintained a positive long-term view. The company’s Indian operations are expected to remain strong, with potential recovery in European performance likely to aid overall earnings.India’s steel demand is projected to grow by 8–10% over FY26–27, supported by a healthy demand environment, government infrastructure push, and improving industry fundamentals.To protect domestic producers, the government has proposed a 12% safeguard duty on flat steel products, expected to stabilize local prices.
Market sentiment for the second half of FY26 remains upbeat, backed by expectations of a gradual recovery in steel prices, lower input costs—especially coking coal—and sustained demand from infrastructure and manufacturing.
Motilal Oswal added that capacity expansion will further fuel growth, with Tata Steel aiming to ramp up its domestic capacity from 26.5 MTPA in FY25 to 40 MTPA by FY30.
The company has commissioned a 5 MTPA integrated facility at Kalinganagar, increasing the plant’s total capacity to 8 MTPA following an investment of Rs 27,000 crore. The phase-III expansion aims to raise capacity further to 13 MTPA.
Other key projects include scaling NINL’s capacity from 1 MTPA to 4.5 MTPA, setting up a 0.75 MTPA electric arc furnace (EAF) at Ludhiana by FY27, and expanding the Meramandali plant from 5.6 MTPA to 8.2 MTPA.
At around 10 am, Tata Steel shares were trading at Rs 184, up 2% from the previous close on the NSE. The stock has gained 30% over the past six months.
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