Tata Steel: Up 64% in last 1 year, this auto stock is Axis Securities' ‘pick of the week’ – 4 key reasons why

livemint.com:

Tata Steel as its 'top pick of the week'. This is due to reduced costs in Europe, increased capacity in India, lower coking coal prices, and strong operations in India.The brokerage has a ‘buy’ call on the stock with a target price of ₹179, implying a potential upside of 10 percent.Tata Steel Group is one of the world’s largest steel companies with a steel production capacity of 35 mtpa.

According to the World Steel Association (WSA), the group ranked 10th globally in terms of crude steel production (29.5 mtpa) in 2023. Established in India as Asia’s first integrated private steel company in 1907, the group has a presence across the entire value chain of steel manufacturing, including producing and distributing finished products as well as mining & processing iron ore and coal for steel production.The stock has surged over 64 percent in the last 1 year and 30 percent in 2024 YTD.

The stock has jumped over 8 percent in June so far, extending gains for the 5th straight month. The auto major added 1.3 percent in May, 5.8 percent in April, 10.65 percent in March, and 3.6 percent in February.

However, it was in the red in the first month of the year, down 2.6 percent in January.The scrip hit its record high of ₹182.10 in intra-day deals today. However, the stock has rallied over 68 percent from its 52-week low of ₹108.15, hit on June 26, 2023.In the March quarter, Tata Steel posted a 64.8 percent fall in its consolidated net profit at ₹554.6 crore, compared to ₹1,566 crore in the corresponding period last year.