Tata Steel fell 1.65% to Rs 319.05 at 12:09 IST on BSE on media reports that a foreign brokerage has maintained its underperform rating on the stock citing higher valuations.
Meanwhile, the S&P BSE Sensex was up 71.29 points or 0.28% at 25,409.87.
On BSE, so far 5.75 lakh shares were traded in the counter as against average daily volume of 12.42 lakh shares in the past one quarter. The stock hit a high of Rs 325.60 and a low of Rs 318.70 so far during the day. The stock had hit a 52-week low of Rs 200 on 29 September 2015. The stock had hit a 52-week high of Rs 384.20 on 6 May 2015. The stock had outperformed the market over the past one month till 30 March 2016, surging 30.23% compared with Sensex's 10.16% rise. The scrip had also outperformed the market in past one quarter, advancing 25.66% as against Sensex's 2.39% fall.
The large-cap company has equity capital of Rs 971.22 crore. Face value per share is Rs 10.
The foreign brokerage reportedly said that Tata Steel would witness cash drag till it finds a new buyer for its European business operations. The brokerage sees continued pain in Tata Steel's European operations.
Tata Steel had recently announced its decision of exploring all options for portfolio restructuring including the potential divestment of its UK subsidiary Tata Steel UK, in whole or in parts in the wake of deteriorating financial performance of the UK subsidiary in the last twelve months.
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On consolidated basis, Tata Steel reported net loss of Rs 2127.23 crore in Q3 December 2015 as against net profit of Rs 157.11 crore in Q3 December 2014. Net sales declined 16.5% to Rs 27818.73 crore in Q3 December 2015 over Q3 December 2014.
Tata Steel is Europe's second largest steel producer. The combined Tata Steel group is largest steel producer in the world.
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