Tata Steel Pulls Back After 6% Surge - SEBI Analyst Flags Near-Term Strength, Long-Term Caution

Tata Steel shares pulled back on Thursday after surging 6% the previous day, when the stock broke past a key resistance level on substantial volumes.

Fundamental View

SEBI-registered analyst Finkhoz rated Tata Steel 5.9/10 (Average), noting that while the company is showing signs of recovery, fundamentals remain mixed. 

June 2025 sales came in at ₹53,178 crore, down from ₹54,771 crore a year earlier. Net profit rose sharply to ₹2,007 crore from ₹919 crore, though volatility persists as the company reported a loss of ₹6,511 crore in September 2023. 

Operating margin held steady at 14%, better than the 8%–12% range seen last year. EPS improved slightly to ₹1.66, but consistency is still lacking. 

Finkhoz said Tata Steel is not a“steady compounder,” though global tailwinds could lend it temporary strength.

Technical View

On the charts, Tata Steel broke out above ₹165 resistance after months of consolidation, with Wednesday's jump supported by strong trading volumes. 

The relative strength index (RSI) at 60 suggests room for further upside, as the price is trading above both the 50 exponential moving average (EMA) and the 200 EMA, indicating bullish momentum. 

The next hurdle sits at ₹180–185, with potential to extend to ₹200 if cleared. However, Finkhoz cautioned that false breakouts are common in cyclical stocks, and a fall below ₹150 would weaken the setup.

Recent News And Analyst View

The rally was fueled by reports that China will cut steel production starting in 2025–2026, a move that could give Tata Steel more pricing power and open up export opportunities. 

However, Finkhoz cautioned that global competition and price swings remain real risks. 

He said the 6% surge was sparked more by global headlines than by company fundamentals, signaling bullishness in the short term, but advising long-term investors to handle the stock carefully, watching margins and demand trends closely.

What Is The Retail Mood?

On Stocktwits, retail sentiment was 'bullish' amid 'high' message volume.

Tata Steel's stock has risen 22.3% so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

MENAFN04092025007385015968ID1110015454