Year-to-date, Tata Steel is down 21.62% against 12.84% gain in Sensex.
Shares of Tata Steel NSE Negative by 3.29 % fell over 3 per cent in early trade today.
The Swiss broker downgraded Tata Steel to ‘sell’ from ‘buy’ and slashed its target price on the stock to Rs 360 from Rs 675 as it expects weak India earnings to delay deleveraging.
The brokerage expects a de-rating from current levels given a domestic demand recovery is yet to materialize and European operations are still struggling with a subdued demand environment.
Despite previous guidance to reduce debt by $1 billion per year, a subdued domestic environment and weak overseas operations in H1 FY20 (April-September) led reported net debt to increase from Rs 95,000 crore in March 2019 to Rs 1,07,000 cr in September 2019," UBS said in a note
The recently concluded stake sale of NatSteel Vina (Vietnam) is positive but the brokerage remains concerned about the divestment timeline in Thailand.
The stock was trading at Rs 407.30, down 3.21 %. Tata Steel is down 21.62 % against 12.84 % gain in Sensex.
