Tata Steel shares are down 22% from record high; can they recover?

Tata Steel share price today: Shares of Tata Steel have slipped 22% from their record high in five months. The stock, which touched a record high of Rs 184.60 on June 18 this year fell to Rs 143.45 in the current session.  In the short term, Tata Steel stock has disappointed investors with a correction of 18% in six months, 7% in three months and 4% in a month. 

In 2024 too, Tata Steel stock could deliver a meagre 2.54% returns. Tata Steel shares have rallied 13.09% in a year In two years, the stock was up 36.75%.

The relative strength index (RSI) of Tata Steel stood at 45.3, signaling it's trading neither in the overbought nor in the oversold zone. 

In the current session, the metal stock closed 0.43% lower at Rs 143.45 on BSE. Market cap of the firm stood at at Rs 1.79 lakh crore. Total 8.36 lakh shares changed hands amounting to a turnover of Rs 12.05 crore on BSE. The Tata Group stock has a one-year beta of 1.5, signaling high volatility during the period. 

The Tata Group stock is trading higher than the 5 day, 10 day but lower than the 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages indicating that the stock is in a bearish zone.

Centrum Broking has a price target of Rs 168 on the Tata Steel stock. 

Global brokerage JP Morgan has maintained its over-weight stance on Tata Steel, with a price target of Rs 180 per share.

Axis Securities has assigned a price target of Rs 175 on the Tata Group stock. 

"In FY25, consolidated sales volume is expected to increase by 1-1.4MT, led by 1.1MT from KPO-II, 0.2 MT from NINL, partially

offset by the shutdown at one of the BF at Jamshedpur for relining in Q4. Indian profitability will improve as the KPO-II ramps up and will add 3.5-4MT/5MT in FY26/27. Cost at KPO-II will come down by Rs 3-4k/t as it ramps up fully by FY27 due to operating leverage with its expansion from 3 to 8 MTPA," said Axis Securities. 

Morgan Stanley has kept its equal-weight rating intact, with a price target of around Rs 175 per share.