Tata Steel shares settle 4% higher, market cap rises by Rs 7,062 crore
The company’s share witnessed an intra-day high of Rs 718, up 5.02%, over its previous closing price, after it reported a five-fold jump in its third quarter profit.business Updated: Feb 12, 2018 16:36 IST
Shares of Tata Steel today settled with gains of more than 4% on the BSE, following which the company’s market capitalisation improved by Rs 7,062.62 crore.
The company’s share witnessed an intra-day high of Rs 718, up 5.02%, over its previous closing price, after it reported a five-fold jump in its third quarter profit.
Tata Steel on February 9 had reported a five-fold rise in consolidated net profit to Rs 1,135.92 crore for the third quarter ended December 2017. It had posted a consolidated net profit of Rs 231.90 crore in the same quarter of the last fiscal.
At the end of today’s trade, the stock was quoted at Rs 712.50, up 4.22%.
Following the uptick in the counter, the market capitalisation of the company improved by Rs 7,062.62 crore to Rs 73,459.80 crore.
On the NSE, the stock opened at Rs 716, then touched a high of Rs 716.90 and finally settled at Rs 713.70, up 4.14%.
“We see TSL (Tata Steel Ltd) as the biggest beneficiary of the uptick in steel prices and demand due to the raw material security. Focus on profitable domestic operations and value-added products is expected to keep intact the earnings momentum,” Edelweiss Securities said in a note.
Over the last nine months, Tata Steel delivered strong consolidated operational performance across geographies and the firm expects this momentum to continue as markets are expected to remain favourable, its CEO and MD T V Narendran said.
“Globally, steel prices have been buoyant with improved trade position in China along with cost push from raw materials... In India, we have witnessed strong volume growth across the verticals as well as an increase in realisations,” Narendran added.
First Published: Feb 12, 2018 16:34 IST