HSBC raised its target for this Tata Group company, expecting a 31% gain in the stock. Keep an eye on it.

News Topical, Digital Desk : Brokerage firm HSBC has maintained a positive stance on Tata Steel Limited shares. The firm believes the company's shares could still rise by up to 31%, as import protection measures have been implemented in key markets.

Brokerage firm HSBC maintained its "Buy" rating on Tata Steel and raised its target price to ₹250 from ₹235. This implies a potential upside of around 31% from current levels.

Strict import rules in the UK and Europe Recently, the United Kingdom has imposed import tariffs of up to 50% and drastically reduced import quotas to protect the steel sector. According to reports, import quotas on many steel products have been reduced by up to 60%. Apart from this, the European Union has also implemented a carbon price on imported steel, which will be determined based on emissions and has been fully implemented from this year.

Safeguard duty in India too

The Indian government has also imposed safeguard duty on flat steel products for three years to prevent cheap imports, especially those coming from China, Vietnam and Nepal.

Earnings forecast hike

According to HSBC, multi-year import protection is now in place in Tata Steel's key markets, due to which the firm has raised the company's earnings forecast for FY27-28 by 5% to 14%. Although there are some concerns about demand in India in the near term, the situation is expected to remain strong going forward due to better margins and prices.

Shares rise

On Friday, Tata Steel shares were trading at ₹198.6, up nearly 4.2%, and it was among the top gainers of Nifty 50. Out of 36 analysts covering Tata Steel, 23 have a "Buy", 7 have a "Hold" and 6 have a "Sell" rating. On average, the market is expecting an upside of 7.6%.

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