Jefferies retains hold on Tata Steel

Shares of Tata Steel are trading higher by almost 1 percent tFriday afternoon hitting an intraday high of Rs 564 per share. The steel maker on June 20, 2018 announced that it has started despatch of Ferro Chrome branded as Tata Tiscrome from its ferro chrome plant located in Gopalpur Industrial Park in Odisha's Ganjam district. The recently commissioned first green field ferro-chrome plant of Tata Steel achieved a major milestone with the first ever despatch of ferro chrome from the plant getting flagged off on June 18, a company release said. Global research firm Jefferies has maintained a hold on the stock but has cut the target from Rs 614 to Rs 584 per share. The house is of the view that Tata Steel's joint venture with Thyssen should be on track and feels that the company may adjust deal in terms given recent divergence in margin trends. With net debt rising, Tata Steel may be keen to push through the JV. Stronger Pound and Euro likely affected company's margin in Q4, adding that Q1 margins is likely to be strong for both India and Europe.