Tata Steel delivery volumes fall in Q2; stock slips 2%

Shares of Tata Steel were trading 2.6 percent lower in early trade on October 9. For the second quarter of the current fiscal year, Tata Steel India reported crude steel production of 4.99 million tons.

Tata Steel stock was trading at Rs 123.15 on the NSE, down 2.18 percent.
Tata Steel India saw a 4 percent rise in production year-on-year (YoY), but production was broadly stable on a sequential basis.  On a half-year basis, crude steel production increased by 3 percent YoY. Delivery volume slipped 1.8 percent to 4.82 million metric tonnes YoY.

Tata Steel Europe saw a production growth from 1.79 million tons in 1QFY24 to 1.99 million tons in 2QFY24. However, production dropped 17 percent on a YoY basis. Delivery volume in Europe fell 4.3 percent to 1.79 million metric tonnes during the second quarter in FY24 from the corresponding quarter last year.

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Tata Steel Thailand experienced a QoQ increase in production to 0.28 million tons in Q2FY24, but a decrease from the corresponding quarter last year.

Shareholding pattern, technical view

Compared to the Nifty’s one-year run at 13.4 percent, Tata Steel shares have gained 21.6 percent. Over the past six months, the stock price has risen 19.91 percent. From its 52-week high of Rs 135 apiece, the shares are trading 6.7 percent lower.

The counter’s RSI stands at 48.4, indicating that the stock is neither oversold nor overbought. Additionally, there is high volatility in the stock, as suggested by the one-year beta of 1.21. While the stock is trading above all its 50-, 100- and 200-day moving averages, it is trading below its 5-, 10- and 20-DMAs.

According to the June shareholding data, the promoters maintained a 33.9 percent stake in the firm. FIIs held 20.3 percent of the firm, while DIIs held 21.9 percent. The public had a 24.0 percent stake in Tata Steel.

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