Tata Steel overtakes Trent to become the fourth-largest Tata Group company by market cap

Meanwhile, brokerages have turned bullish on Indian steel companies. HDFC Securities, which recently initiated coverage on the steel sector, believes that India’s demand outlook remains strong, driven by government-led infrastructure spending and rising industrial demand.

“While global demand contracted by 2% CAGR during CY21-24, India’s steel consumption surged at an impressive 11.6% CAGR. In contrast, China’s demand declined at a faster pace (-4% CAGR), while other major economies saw only low single-digit growth,” HDFC Securities noted in an investor report.

The brokerage has a “Buy” rating on Tata Steel with a 12-month price target of ₹155.

Of the 35 analysts covering Tata Steel on Bloomberg, 60% recommend a “Buy”, while eight suggest a “Hold”, and six advise a “Sell”. On the other hand, 15 out of 22 analysts tracking Trent have a “Buy” rating, with three recommending a “Hold” and four suggesting a “Sell”.