Tata Steel Ltd has announced big plans to grow its business in India, including increasing production, setting up new plants, buying stakes in raw-material units, and partnering with other companies. However, brokerages have different opinions on how these plans will affect the company’s stock in the near term.
The company plans to raise production at Neelachal Ispat Nigam Ltd in Odisha by 4.8 million tonnes and set up a low-carbon steel demonstration plant in Jamshedpur. New facilities in Odisha and Maharashtra will make higher-value steel products for construction and automotive industries.
To secure raw materials, Tata Steel will buy a 50.01% stake in Thriveni Pellets Private Ltd for around ₹636 crore. Thriveni owns a 4-million-tonne pellet plant and a long slurry pipeline in Odisha, which will help Tata Steel ensure steady iron ore supply.
Tata Steel also signed a non-binding deal with Lloyds Metals & Energy to explore mining and steel projects in Gadchiroli, Maharashtra. This could include building a greenfield steel plant with a capacity of six million tonnes, marking Tata Steel’s first major presence in western India.
Brokerages have different views on the impact of these moves. Motilal Oswal and JM Financial recommend buying the stock, citing growth potential and stronger demand. Elara Capital suggests accumulating the stock, noting profits may be lower in the short term due to soft steel prices. Nuvama Institutional Equities rates it as “hold,” pointing to possible margin pressure and uncertainty about capital spending timelines.
Analysts say the expansion will strengthen Tata Steel in the long run by adding capacity, downstream products, and sustainable technology. However, steel price swings and execution risks could affect short-term results.
Tata Steel’s expansion shows a focus on long-term growth, integrating raw materials, and reaching new regions, while investors balance optimism about growth with caution over market conditions and project execution.
Also Read: Microsoft CEO builds AI Cricket App at leisure time