Motilal Oswal recommends Tata Steel buy call with ₹220 target
Motilal Oswal is recommending Tata Steel as a buy, with a target price of ₹220.
They are optimistic because steel prices in India have jumped, thanks to lower inventories from maintenance breaks and stronger demand this July and August.
The firm expects solid earnings for Tata Steel's Indian business but notes that keeping profits up will need smart pricing as costs rise later in FY27.
Tata Steel capacity expansion boosts outlook
The positive outlook is also tied to Tata Steel expanding its capacity and strong local demand.
For the European side of the business, future earnings depend on regulations and market stability, so there could be more upside if things go well there.
Right now, the stock trades at 6.8 times estimated FY28 EV/EBITDA and 1.8 times price-to-book value, with Motilal Oswal sticking to its buy call based on long-term growth potential in India.