Tata Steel Share Upgraded to Buy by Motilal Oswal; 19% Upside Potential Seen
We are watching the Tata Steel Limited share closely after the brokerage Motilal Oswal Financial Services (MOFSL) upgraded its rating to Buy on October 27 2025, setting a target price of ₹210 from a prior level of ~₹177. This upgrade places the focus keyphrase Tata Steel share front and centre as investors ponder the 19 % upside potential. On October 28 the share closed at ₹174.44, up 1.27 % on the day. For investors, this move raises two questions: Is the broader trend in India’s steel sector strengthening? And how much of that strength is already priced into this key steel name? In this article we unpack the macro-steel backdrop, zoom into Tata Steel’s business and valuation, and assess the investor implications of this upgrade.
Steel Industry Tailwinds and Why They Matter for Tata Steel Share
Domestic demand and policy support
India’s long-term steel demand is expected to grow by roughly 8–10 % during FY26–27, driven by infrastructure spending and government support. This backdrop matters for the Tata Steel share because stronger domestic volumes offer upward earnings leverage. For instance, Motilal Oswal cites improving realisations and operating efficiencies as key drivers of their upgrade.
Price realisations & global business turnaround
In addition to Indian demand, Tata Steel’s European unit has been flagged as improving by analysts, which adds incremental upside potential beyond domestic gains. For our analysis of the Tata Steel share, this means the upside is not just local but also international. Alongside this, the company’s current valuation (P/E ~51.8x, P/B ~2.46x) hints that the market is expecting meaningful improvement.
Investor takeaway: The Tata Steel share is benefiting from both macro tailwinds and company-specific triggers. The upgrade to Buy signals the brokerage believes these factors are now fairly visible rather than speculative.
Tata Steel Share – Business Snapshot & Valuation
Latest metrics and research view
As of October 28 2025, the Tata Steel share closed at ₹174.44. Motilal Oswal’s upgrade from Neutral to Buy with a ₹210 target implies a ~19 % upside. Other brokerages bolster the bullish view: for example, InCred Equities set a target of ₹224 (~29 % upside), citing robust Europe prospects.
Key risks and valuation context
On the flip side, Tata Steel’s P/E of 51.8x is well above the industry average (~32.6x), which raises the bar for earnings delivery. Short-term risks remain: tariffs, import competition,and global cost pressures can dent margins. As of recent filings, net debt stood at ~₹858 billion and net debt/EBITDA ~3.34x as of 3QFY25.
Investor takeaway: For the Tata Steel share to deliver on the 19 % upside, the business must show meaningful improvement in both India and Europe segments, and the valuation must withstand competitive and cost headwinds.
Market Sentiment & Investor Reaction
There is visible positive market reaction to the Tata Steel share upgrade: the stock rose ~2 % to ₹180.22 on the Nifty 50 after the upgrade. Social media and trading communities are also keyed into “#TataSteel” mentions showing increased chatter.
Investor takeaway: Sentiment is turning more constructive for the Tata Steel share, which is encouraging but sentiment by itself doesn’t guarantee earnings delivery.
Conclusion
In our view, the Tata Steel share presents a compelling risk-reward scenario. Broader tailwinds in Indian steel demand, potential turnaround in European operations, and operational efficiencies form the core of the upside thesis. Motilal Oswal’s upgrade to Buy and ~19 % upside signals these factors are now more visible than before. However, the premium valuation means expectations are high. If global steel prices weaken, import competition intensifies or cost inflation bites, the upside could stall. For investors, a sensible approach is to treat Tata Steel share as a strategic long-term position with a target around ₹210, but monitor closely for any slip-ups in execution or macro stress. A trailing stop or profit-taking strategy around the target might be prudent given the elevated valuation.
In short: the rails are laid, but the train must still deliver on time.
FAQs
The target price set by Motilal Oswal is ₹210, implying roughly a 19% upside from the last close of ~₹177 per share.
The upgrade is driven by improved demand prospects in India, better realisations, and expected improvement in the European business. MOFSL believes these factors reduce risk and enhance medium-term earnings potential for the Tata Steel share.
Major risks include global steel price weakness, higher input/cost inflation, tariff or trade policy shifts, and execution delays in business turnaround—especially for the European operations of Tata Steel share.
If you have a medium-term horizon (2–3 years) and are comfortable with risk, buying now could make sense given the upgrade and tailwinds. If you’re more cautious or short-term oriented, waiting for a pull-back or clearer earnings improvement may be wise.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
