Tata Steel, Vedanta poised for better growth after turning around

While near-term trigger has been strong March-quarter numbers, their stocks have more steam left

Vedanta and Tata Steel saw a turnaround in their operating performance in the March quarter. Tata Steel’s operating profit grew more than three-fold over the year-ago quarter, while Vedanta’s operating profit more than doubled. Not surprising then that their stocks have nearly doubled over the past year, and analysts seem confident about their prospects. 

Tata Steel and its peers in the domestic steel sector benefitted over the past year from improving domestic realisations. While the implementation of minimum import price (MIP) and other government measures helped domestic realisations, a rebound in international steel prices, too, was a factor. 

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