Why Tata Steel Shares Slumped 31.09% From Peak, Buy?

Share price of Tata Steel settled with the decline of 2.30% in trade today on Bombay Stock Exchange as Sensex slipped 379.93 points to 73,847.15. The Tata Group stock plunged steeply by 17.75% in just last 1-week and declined 31.09% from 52-week high at today’s last trading price. Meanwhile, the company has a market capitalisation of Rs 1,58,789.39 crore. The return on equity of the stock is 10.44%.

Why Tata Steel Shares Declined Steeply?

Tata Steel and several other metal stocks such as NMDC, SAIL, Vedanta, Jindal Steel witnessed steep decline after US President Donald Trump levied 104% tariff on China which has become effective as well starting April 9, 2025. The Trump Administration took the step after China imposed retaliatory tariff of 34% on US imports that would become effective from tomorrow (April 10, 2025). The new tariff announcement on China dented the metal stocks on BSE and NSE. Previously, US had decided to maintain a tariff of 10% on Chinese imports but on April 2, the President of US launched “reciprocal tariff” taking the rate to 44%.

Why Tata Steel Shares Slumped 31.09% From Peak, Should You Buy?

However, leading analyst J.P. Morgan said tariffs may not hurt Indian steelmakers as much, as just 2.5% of India’s steel export volumes are to the U.S. Meanwhile, India’s recommendation of a 12% safeguard duty on some steel products has emerged positive for steel sector.

Tata Steel Netherlands Announces Major Transformation Programme

According to the exchange filing of the company dated April 9, 2025, “Tata Steel’s steel making operations at IJmuiden in the Netherlands constitute one of the most strategically located steel plants in Europe with its own deep-sea port and proximity to key customers. The access to offshore wind energy, transmission and pipeline infrastructure will enable the transition to competitive green steel making for which intense engagement is ongoing with all stakeholders including the Dutch Government.”

V. Narendran, (CEO and Managing Director of Tata Steel and Chairman of the Supervisory Board of Tata Steel Nederland), said: “Together with my colleagues in Tata Steel and Tata Steel Nederland, we will ensure that Tata Steel Nederland returns to its pre-eminent position as one of the most efficient steel making sites in Europe, producing high-quality steel for our customers. We are working closely with the Dutch government and other stakeholders and are in constructive discussions about our joint investments in the Green Steel plan going forward. This transformation is a building block towards this future where we ensure that TSN has the required robust operating and financial profile enabling it to move towards its future as one of the best and most sustainable steel companies in Europe.”

Tata Steel Share Performance

The 52-week high price on BSE is Rs 184.60 per share (as on 18/06/2024) and 52-week low price is Rs 122.60 per share (as on 13/01/2025), respectively. Tata Steel shares recorded a correction of 17.75% in last 1-week, slipped 20.00% in last 6-months, and plunged 23.35% in last 1-year. The Tata Group metal stock posted gains of 21.84% in last 2-years and offered multibagger returns of 346.63% in last 5-years.

Tata Dividend History

Tata Steel offered highest ever dividend of Rs 51/share in 2022. The company recommended 27 dividends since 2001. In the last 1-year span, Tata Steel declared an equity dividend amounting to Rs 3.60 per share, according to Trendlyne.

Tata Steel Bonus Share History

Tata Steel declared bonus share once since August 11, 2004. The metal stocks’ last bonus was announced in the ratio 1:2 and ex-bonus date was set as August 11, 2004.

Tata Steel Stock Split History

Tata Steel split the face value once since July 28, 2022. It sub-divided the face value of its shares from Rs 10 to Re 1 in 2022. Tata Steel share traded ex-split as on July 28, 2022.

Should You Buy Tata Steel Shares?

According to Angel One’s analyst Rajesh Bhosale, “For short-term traders, we may continue to see underperformance and can exit. However, in the long term, the next key support is in the zone of 115 – 120, where traders can look to accumulate in a staggered manner or average their existing positions.”

Disclaimer: The stock has been picked from the brokerage report of Angel One. Moneydaily.in, the author, and the respective brokerage house will not be held accountable for any losses caused as a result of decisions based on the article. Moneydaily.in advises readers to do their own research or consult a SEBI registered investment advisor before making any investment decisions.