Tata Steel slumped 14.18% to Rs 238.85 at 15:32 IST on BSE after Moody's Investors Service lowered outlook on corporate family rating to negative from stable.
The stock hit an intraday low of Rs 238.30, also its 52-week low. It hit an intraday high of Rs 273.45 so far during the day. The stock had a 52-week high of Rs 969.80 on 29 October 2007.
Tata Steel, the world’s sixth largest steel maker, has an equity capital of Rs 730.58 crore. Face value per share is Rs 10.
The current price of Rs 238.85 discounts its Q1 June 2008 annualised EPS of Rs 81.47, by a PE multiple of 2.93.
The change in outlook reflects the more challenging operating conditions now facing Tata Steel UK (formerly Corus) as a result of the likely deterioration in demand in Europe and the UK in the next 18 months, with declining steel prices and reduced production volumes, Moody's said.
Tata Steel UK is the 100% subsidiary of Tata Steel, and is the holding company for the European steel operations principally consisting of the Corus group.
Moody's added that Tata Steel's Indian operations should remain relatively resilient to the deterioration in the operating environment, due to its significant degree of vertical integration, globally competitive cost position and the growth prospects for the Indian market.
Tata Steel's net profit rose 21.8% to Rs 1,488.40 crore on 46.9% rise in sales to Rs 6,165.03 crore in Q1 June 2008 over Q1 June 2007. Tata Steel will declare Q2 September 2008 results on 24 October 2008.
Tata Steel is an integrated steel producer, which manufactures a variety of steel products. The company's products include steel ball bearing rings, alloy steel bearing rings, annular forgings, flanges, bearings, welded steel tubes, cold rolled strips and seamless tubes. Tata Steel also manufactures metallurgical machinery.
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