Indian stock alert

INDIA

CLOSING UPDATE: Tata Steel up 2.0% in 2 days 21 September 2018 18:09 IST

NEWS BITES - BRIC

This is an end of day Alert, produced after today's Indian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Tata Steel, India's 3rd largest iron & steel/intermediate products company by market capitalisation, extended its gains on Friday, rising an additional Rs3.95 (or 0.6%) to trade at Rs625.15. Trading volume was 3.2 times average at the end of the day. The shares have risen Rs12.40 (or 2.0%) over the past two trading days vs. the BSE SENSEX Index which has fallen 1.2% in the same period.

Technical indicators complementing today's significant uptrend:

+ The positive 12.68 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The stock has outperformed 80% of the Indian market over the past 6 months.

+ The price increased 1.7% in the last week and climbed 4.3% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Price/Sales of 0.5 [0.7]

+ Price to Book of 1.3 [2.0]

+ Return on Capital Employed 13.7% [2.5%]

Other Bullish Signals include:

+ The company is cash rich with Cash to Market Capitalisation at 22.0%.

+ Tobin's Q Ratio is 0.3. Compared with the rest of the market the stock is undervalued.

Note

Tata Steel today is at a discount of 19.8% to the 12-month high of Rs779.11 on 15 Jan, 2018. It is at a premium of 26.8% to the 12-month low of Rs493.0 on 19 Jul, 2018.

Bearish Signals:

In the last three months the stock has hit a new 52-week low four times, pointing to a downtrend.

Net profit margin has averaged 5% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Dividend yield of 1.6% [3.0%]

TODAY'S ALERTS

Afternoon Alert: Tata Steel in 2nd consecutive rise, nears nine-month high

21 September 2018 13:03 IST

Tata Steel Limited (NSE:TATASTEEL) extended its gains Friday, rising an additional Rs8.75 (or 1.4%) to trade at Rs629.95. The stock increased 1.38% on Wednesday bringing its 2-day rise to 2.8%. It is now approaching its 194-day high of Rs647.60.

Morning Alert: Tata Steel in 2nd consecutive rise, nears nine-month high

21 September 2018 10:15 IST

Tata Steel Limited (NSE:TATASTEEL) extended its gains Friday, rising an additional Rs21.80 (or 3.5%) to trade at Rs643.0. The stock increased 1.38% on Wednesday bringing its 2-day rise to 4.9%. It is now approaching its 194-day high of Rs647.50.

Tata Steel Limited (NSE:TATASTEEL; BSE:TATASTEEL; NS:TATASTEEL; IN:TATASTEEL)

ISIN: INE081A01012

PermID: 4295872420

Source: www.BuySellSignals.com