Tata Steel share price falls over 30% from 52-week high. Should you buy, sell or hold?

Tata Steel's share price has been under pressure over the last few months, largely amid weakness in metal stocks due to concerns around China's economy and a strong US dollar. The latest round of higher-than-anticipated tariffs by US President Donald Trump has proved to be the last straw, sending metal stocks into a tailspin. Against this backdrop, Tata Steel shares have also faced a heavy selloff.

On Monday, April 7, Tata Steel was among the worst index performers, losing as much as 10% of its value. Investors are concerned that the trade war kicked off by Trump could hurt global economic growth, thus dampening demand for metals. The latest selloff in Tata Steel has pushed the stock almost 50% below its 52-week high level. As per Trendlyne data, Tata Steel share price has fallen 20.3% and underperformed its sector by 22.06% in the past year.

Tata Steel Q4 FY25 Update

Recently, the steel giant also announced a 5% decrease in its consolidated steel production, reaching 7.45 million tonnes (MT) for the final quarter of FY25, primarily attributed to the ongoing transition within the company's UK operations.

The production for the January-March quarter of the previous fiscal year (2023-24) was 7.85 MT, which included 0.31 MT from the UK facility.

In FY25, consolidated steel production across India, the Netherlands, the UK, and Thailand saw an increase of 3.53% to 30.75 MT, up from 29.7 MT in FY24.

Tata Steel also reported a 5.34% growth in consolidated sales, reaching 8.28 MT in Q4 FY25, compared to sales of 7.86 MT in the same quarter of the previous fiscal year (2023-24). For the entirety of the fiscal year, the company's sales grew by 6% to 30.86 MT, in comparison to 29.16 MT in FY24.

Tata Steel India's crude steel output grew by 5 percent year-over-year to approximately 21.8 million tonnes, attributed to the commissioning of the country’s largest blast furnace at its Kalinganagar site and increased production at Neelachal Ispat Nigam Limited.

In the fourth quarter of FY25, production in India was recorded at 5.51 million tonnes, slightly up from 5.40 million tonnes in Q4 FY24.

Domestic deliveries rose to about 21 million tonnes from 19.91 million tonnes compared to the previous year, capitalizing on the growth in domestic steel demand. For the quarter, domestic deliveries increased to 5.6 million tonnes, up from 5.42.

Tata Steel shares - Should you buy, sell or hold?

Tata Steel share price today opened at ₹134.45 apiece on the BSE; the stock touched an intraday low of ₹128.40, and an intraday high of ₹136.25 per share.

Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, explained that amidst the tariff turmoil, the metal space has seen a sharp sell-off, and Tata Steel has corrected sharply in the last few days, and momentum remains negative.

“For short-term traders, we may continue to see underperformance and can exit. However, in the long term, the next key support is in the zone of 115 - 120, where traders can look to accumulate in a staggered manner or average their existing positions,” advised Bhosale.

Further, Riyank Arora, Technical Analyst, Mehta Equities Ltd, added that Tata Steel share price has corrected 30.25% from its 52-week high, currently trading at ₹129. With major support at ₹120 and immediate resistance around ₹140, the trend appears sideways in the near term, according to him.

“Investors can consider holding existing positions and accumulating slowly on dips, but only with a strict stop loss below ₹120. Caution is advised as the stock consolidates within this range,” said Arora.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.