Shares of Tata Steel surged over 9 percent trading at an intraday high of Rs 109.3 after the shares turned ex-split in the ratio of 1:10. Shareholders received 10 shares for each Tata Steel stock they held as of June 28 or had the delivery in their account.
Tata Steel’s shares closed at Rs. 107.45, up 7 percent from the previous close on the BSE.
The record date for the share split set by the company was July 29. The face value of each Tata Steel share is now Rs 1, effective immediately. This is the first share split by the steel maker since January 1996.
Tata Steel's share price advanced the Nifty Metal index to 4 percent in today's session. Shares of the steel-making company have risen more than 20 percent in one month.
What do brokerage firms say?
Global brokerage firm JP Morgan has issued an 'overweight' call on Tata Steel, with a target price of Rs 1,400 per share. While the second quarter is seasonally weak, the second half of FY23 should rebound, said the brokerage firm.
Domestic brokerage firm Motilal Oswal has maintained a 'neutral' rating on Tata Steel, with a price target of Rs 975 per share.
The finances
Mumbai-based Tata Steel, on July 25, reported a 20.5 percent year-on-year (YoY) decline in consolidated net profit at Rs 7,765 crore for the first quarter ended June 30, 2022, on higher expenses.
Here is a snapshot of the steel maker's June quarter:
Despite the sharp rise in input costs especially coking coal and gas prices in Europe, total income stood at Rs 63,430.07 crore during the period under review, up 18.8 percent against Rs 53,371 crore in the corresponding period of the preceding fiscal year.
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