Tata Steel hits new low, again
Tata Steel has hit a new 52-week low today at Rs.255.80 and previously, on 8th July the company had a low at Rs.258.25. It has been on a decline for the past couple of days now.
The stock has hit a new low after broking firm CLSA downgraded the stock to “sell” from “underperform” and this has played hugely on the stock. CLSA has voiced concerns of various front, including falling margins. The big worry is that the company is currently sitting on a forex loan of Rs.53,000 crore and given the rupee depreciation, this is expected to impact the company. Going ahead, CLSA see’s the debt rising to Rs.70,000 crore levels. The company also imports a large portion of coking coal and that too, given the falling rupee will have an impact on the margins.