Tata Steel shares experienced a significant uptick on Thursday, emerging as one of the top gainers in the Nifty 50 index. This surge came after the company unveiled an extensive capital expenditure (capex) roadmap and a series of strategic initiatives aimed at enhancing its steel production capacity, securing raw material supply chains, and expanding its geographic presence.
The stock rose by 1.25 percent to Rs 164.25 in early trading, bringing its year-to-date gains to 20 percent. With a market capitalization of Rs 2.05 lakh crore, Tata Steel has outperformed the Nifty 50 index, which has seen an 8.7 percent gain over the same period. The company's shares trade at a price-to-earnings (P/E) ratio of 30.1 and offer a dividend yield of 2.2 percent.
Key to the company's expansion plan is the scaling up of the Neelachal Ispat Nigam Ltd (NINL) unit, where Tata Steel aims to increase capacity by 4.8 MTPA, taking the total to 5.8 MTPA, with potential future expansion to 10 MTPA. Additionally, the company plans to establish a 2.5 MTPA thin slab caster and rolling facility in Odisha and a 700,000-tonne hot roll pickling and galvanising line in Maharashtra to bolster its downstream operations.
Tata Steel is also advancing its decarbonisation efforts by commencing work on a 1 MTPA Hisarna-based green steel facility in Jamshedpur, leveraging technology already deployed in the Netherlands.
Investors are advised to consult with certified financial experts before making any investment decisions based on this information.
Download the TradeKaizen app to practice F&O trading with real-time market data anytime, anywhere.
Get it on Google PlayConnect with fellow traders, share strategies, and improve your trading skills in our Telegram group.
Join Telegram