What Made Tata Steel Shares Shine In Today’s BSE Sensex Rally? Should You Buy Stock Now?

The BSE Sensex surged over 1,000 points on June 25, 2025, closing at 83,755.87, up 1.21% from the previous session. Leading the rally was Tata Steel, which jumped 2.62% to Rs 160.50, becoming the top gainer among large-cap stocks.

The stock surged after the company announced a significant capital infusion into its overseas subsidiary. Tata Steel revealed that it had acquired over 179 crore equity shares of T Steel Holdings Pte. Ltd. (TSHP), its wholly owned foreign subsidiary, for USD 180 million (approximately Rs 1,562.54 crore).

This move is part of a broader plan to invest up to USD 2.5 billion (around Rs 21,410.95 crore) in its foreign subsidiary, T Steel Holdings Pte Ltd (TSHP), by subscribing to its equity shares in one or more phases during the current financial year.

Tata Steel Q4 Results 2025

Tata Steel reported a net profit of Rs 3,173.78 crore in FY25, a strong recovery from a loss of Rs 4,909.61 crore in the previous financial year. The company also managed to reduce its expenses to Rs 54,167.61 crore, down from Rs 56,496.88 crore a year earlier.

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Tata Steel Share Price Movement

Tata Steel Ltd has shown mixed performance over different periods. In the short term, the stock gained 6.33% in the last week and 5% over two weeks, while delivering a 3.02% return in the past three months. Over six months, it has gained 14.36% but is still down 6.98% over the past year.

However, long-term returns remain strong, with the stock rising 88.18% in three years, 395.52% in five years, and 471.58% over the past ten years.

The company's market capitalisation stands at Rs 2.00 lakh crore, with a 52-week high of Rs 178.15 and a 52-week low of Rs 122.60.

Tata Steel Share Price Target

Tata Steel is currently trading at around Rs 160 levels, and JM Financial has given it a BUY rating with a target price of Rs 180 as of June 25.

According to Trendlyne, the company has a Durability Score of 75, indicating high financial strength backed by stable revenues, strong cash flows, and low debt. Its Valuation Score of 58 suggests that the stock is affordably priced based on current valuation metrics like P/E and P/BV.

However, Tata Steel has spent 86.3% of the time below its current P/E of 58.6, placing it in the PE Strong Sell Zone, which could imply that most of the potential gains may already have been priced in.

Despite this, sentiment remains positive, with 31 analysts recommending a BUY and an average target price of Rs 162.6, indicating a 1.3% upside from the current level.

Top Gainers And Losers

Other major gainers that supported the Sensex rally included Bajaj Finance (+2.50%), Bharti Airtel (+2.48%), Adani Ports (+2.46%), and HDFC Bank (+2.16%). Key heavyweights like Reliance Industries, NTPC, and Axis Bank also contributed to the uptrend.

On the flip side, a few stocks like Maruti (-0.36%), TCS (-0.12%), and Tech Mahindra (-0.39%) ended in the red, but their impact was offset by the overall strength in the market.

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