Nomura reiterates Buy on Tata Steel, keeps Rs 240 target on Netherlands recovery view
AI Market Summary
Nomura reiterated a Buy on Tata Steel (Rs 240 target), arguing the market is overly pessimistic on the Netherlands business as environmental metrics improve and EBITDA is expected to rebound sharply by Q2FY27. India volumes are projected to grow, but near-term EBITDA may soften on weaker realizations and cost pressures. The note supports stock-specific sentiment, with limited broader index impact.
Impact level
● Low
AI InsightAI Insight
● Neutral
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Nomura reiterated its “Buy” rating on Tata Steel and kept its target price at Rs 240, citing a recovery outlook for the company’s Netherlands operations. The brokerage pointed to a sharp improvement in environmental performance, including a 98% reduction in undercooked coke emissions, and expects Netherlands EBITDA to rebound to EUR34 per tonne in Q2FY27. In India, Tata Steel’s volumes are projected to rise 6% year on year, even as weaker domestic steel realisations and cost pressures are seen weighing on sequential EBITDA.
