Tata Steel share price jumps 6% in trade; What's boosting surge in stock?

Tata Steel shares rose 6 per cent on Friday, April 11, 2025, logging an intraday high at ₹134.95 per share on BSE. The stock gained after Tata Steel Nederland filed a request for advice to the Central Works Council to commence consultation on certain aspects of this transformation programme.

 

Around 9:29 AM, Tata Steel share price was up 3.69 per cent at ₹131.9 per share on BSE. In comparison, the BSE Sensex was up 1.55 per cent at 74,989.98. The market capitalisation of the company stood at ₹1,63,970.02 crore. The 52-week high of the stock was at ₹184.6 per share and the 52-week low was at ₹122.6 per share. 

 

Tata Steel Nederland (TSN) has adopted a comprehensive transformation program to maximise production efficiencies, reduce fixed costs, and optimise product mix and margins. As part of this initiative, the TSN will standardise the processes, increase automation, and eliminate duplication across its operations.   ALSO READ | Stock Market LIVE: Sensex jumps 1400 pts to 75,250; Nifty at 22,840

 

In FY2025, the Netherlands operations of the company recovered with liquid steel production volumes near capacity at 6.75 MTPA, after the delayed reline of one of the blast furnaces had impacted production in FY2024. However, the challenging demand conditions in Europe driven by geo-political developments, trade and supply chain disruptions and escalating energy costs have affected the operating costs and financial performance, according to the filing. 

 

Further, TSN plans to reduce 1,600 jobs from its total workforce of around 9,000 in Ijmuiden, Netherlands. Of the targeted EUR 500 million in cost savings, EUR120-160 million is expected to come from employee-related expenses. FY27 could see incremental savings of EUR50- 60 million.  

Over the following weeks, an effective and comprehensive consultation process will be run on the proposed changes by the company. 

 

According to Motilal Oswal, the restructuring could reduce employee and other costs, leading to structural improvements in profitability.  

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"While near-term challenges persist due to global uncertainty around tariff escalations, the long-term outlook for Tata Steel remains strong," believes the brokerage.

 

It added: The Indian business is expected to continue its strong performance, and an improvement in the European business performance is likely to support overall earnings. Escalating trade tensions are likely to pose near-term challenges for commodities like ferrous. Developments related to tariffs will remain a key monitorable in the near to medium term. 

 

Motilal Oswal reiterated its 'Neutral' rating with a target price of ₹140 per share.

 

In the past one year, Tata Steel shares have lost 23 per cent as compared to Sensex's fall of 0.53 per cent.