NEW DELHI: Shares of Tata Steel jumped 5 per cent in morning trade on Friday, a day after the company reported Rs 2,430.92 crore profit (attributable to shareholders) for March quarter.
The company reported robust volumes, in which realisations declined in kilter with global prices, pointing to marginal gains for future profitability, as overseas prices partially revive from recent lows.
The company's gross debt reduced to Rs 1.08 lakh crore, down 14 per cent in six months.
It had cash and cash equivalent of Rs 5,937 crore at the end of March.
The company also announced the merger of Bhushan Steel with Tata Steel.
The merger would drive operational synergies and efficiencies and simplify the group structure.
Shares of Tata Steel traded 4.92 per cent higher at Rs 536.05 around 10 am on BSE.
Brokerages have had a mixed verdict on Tata Steel's numbers.
CLSA has maintained a 's ell' rating on the stock, with a price target of Rs 395.
The brokerage expects the company's margin to remain under pressure in FY20.JM Financial maintained a 'buy' rating, with a price target of Rs 715.
Tata Steel remains our preferred play on the steel cycle, given the stabilising debt profile (repayments) and impending TSE-Thyssen JV, the brokerage said.ICICI Securities has given a 'hold' recommendation on the stock, but raised the price target to Rs 514 from Rs 477 earlier.