On the NSE Stock Market today, Tata Steel‘s share price reached a new 52-week low of 895.50: Tata Communications and Tata Steel are two of the Tata group’s companies that are trading near their 52-week lows.
Tata Steel’s stock price today reached a new 52-week low of 895.50 on the NSE, while Tata Communications’ stock price is currently quoting at 872, close to its 52-week low of 856.25.
According to stock market experts, the Tata Steel share price is range-bound, and long-term positional investors should maintain a ‘buy on dips’ strategy, while the Tata Communications share is in a ‘downtrend,’ and new positions should be avoided as the scrip may continue to fall from current levels.
Anuj Gupta, Vice President — Research at IIFL Securities, said of Anuj Gupta, “Tata Steel’s stock is now range-bound, with firm support near 865 to 855 levels. Positional investors should buy on dips because the company has lost a lot of value since the Government of India (GoI) slapped an excise duty on steel exports.
Now that the market has discounted that downside trigger, the stock is projected to see reduced levels of buying activity.” As investors continue to sell, the markets are in chaos. Several stocks, including a few Tata Group businesses, have plunged to 52-week lows.
Let’s see if you should invest in these Tata Group equities. Rallis India, a Tata group firm, saw its stock hit a new 52-week low of Rs 194 in trade, but completed the day at Rs 198. From a 52-week high of Rs 362, the stock has nearly halved in value.
One of the causes for the stock’s decline is that the company’s profitability has stayed lower in fiscal year 2022. For the fiscal year ended March 31, 2022, Rallis India reported consolidated revenues of Rs 2604 crores, up 7.2 percent from the previous year.
Profit before tax (excluding extraordinary items) was Rs 222 crores, down 24 percent from Rs 294 crores the previous year. The net profit (after unusual items) was Rs 164 crores, a 28 percent decrease from Rs 229 crores the previous year. The EPS for FY 2022 is Rs 8.44, which is a 21-fold discount to the share price of Rs 198.
That is neither inexpensive nor costly. However, due to a number of initiatives, the corporation is expected to do well in the future. In the seeds sector, the company has successfully developed novel fungicides, herbicides, insecticides, water-soluble fertilisers, biopesticides, organic manure, and hybrids.
The Company has developed domestic suppliers for certain commodities to lessen its reliance on imported intermediates. The shares are also offered with a Rs 3 per share dividend.
One might acquire this Tata Group company stock because of its future prospects, good pedigree, significant drop in the share price, and cheap valuations.
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