A month ago itself, Tata Steel Long Products had given an indication of what to expect. Giving an update on the operational performance, the company had said that it had achieved the highest ever quarterly crude steel production of 186 thousand tons with a growth of 7% QoQ and 19% YoY on the back of debottlenecking. Its production during the quarter rose 19% (YoY) at 186 thousand tons.
And then came the earnings two weeks ago – it reported a consolidated net profit of Rs 340 crore v/s net loss of Rs 133 crore (YoY). This was on a big 53% rise in revenue from operations at Rs.1547 crore.
The reduction of its debt from Rs.2600 crore in FY20 to Rs.1200 crore in FY21 and the impending merger of Tata Metaliks and Indian Steel and Wire Products into Tata Steel Long Products is a big trigger.
Following this, many brokerage houses are covering this stock, upping the target and this has led to the stock hitting UCs and new highs consistently. Today too, the stock opened itself at its 5% UC of the day at Rs.940.25, a high also, where it remains frozen and that too with the just 902 shares traded.
This company was earlier known as Tata Sponge, it had also acquired the steel business of Usha Martin. The Tata’s have also put forward an expression of interest for Neelachal Ispat Nigam Ltd (NINL).