UBS initiates India's Tata Steel with "neutral" on European recovery hopes

Prosus NV

15/06/2026 09:07

** UBS initiates coverage on India's Tata Steel TISC.NS with "Neutral" rating and PT at 220 rupees
** Key investor focus areas include cost savings, margin expansion, and the company's mitigation strategy for the expiry of captive iron ore mining leases in 2030 - brokerage
** Analysts at UBS expect similar capex as recent years based on lack of domestic capacity additions
** Projects TISC's domestic EBITDA CAGR at 11% for FY26-28E, supported by modest sales growth, limited steel price increases
** Sees co's European EBITDA increasing from 2 billion rupees in FY26 to 19 billion rupees and 28 billion rupees in FY27 and FY28 respectively, helped by Netherlands' carbon emissions tax and co's cost reduction initiatives
** Stock rated "Hold" on average by 34 analysts; median PT at 230 rupees -- LSEG compiled data
** YTD, stock up 10.1%
     

 (Reporting by Mridula Kumar in Bengaluru)
 ((Mridula.Kumar@thomsonreuters.com;))