HSBC Surprised by Tata Steel's Underperformance; Maintains 'Buy' Rating

• HSBC maintains a 'Buy' rating on Tata Steel with a price target of ₹215, despite its surprising underperformance.
• Tata Steel India reported strong Q3FY26 growth: crude steel production rose 11.4% and delivery volumes increased 14%.
• European operations faced pressure, with Tata Steel Netherlands production down 4.5% and UK delivery volumes down 9% (nil production).
• European steel companies rallied 29-63% due to the Carbon Border Adjustment Mechanism, making Tata Steel's underperformance puzzling.
• Morgan Stanley also remains 'Overweight' with a ₹200 target, citing India's strong momentum anchoring overall performance.

Why It Matters: HSBC and Morgan Stanley rate Tata Steel 'Buy'/'Overweight' despite European woes, banking on India's strength.