Metal stocks results preview for Q3FY12: KRChoksey

KRChoksey has come with its quarterly earning estimates for Metals sector.

KRChoksey

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Source: Moneycontrol.com

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KRChoksey has come with its quarterly earning estimates for Metals sector.

Preview on Metals - Ferrous
� Margins for Steel companies remain under pressure due to sluggish demand from Auto & Infrastructure sectors coupled with lag in impact of raw
material cost correction
� Steel companies are expected to be impacted by rupee depreciation resulting in surging imported coking coal prices
� SAIL and Tata Steel have their own captive iron ore mines but import their total coking coal requirements

Factors to watch in the Q3FY12 result
� Volume growth by individual companies
� Impact of Raw Material Cost Inflation (Coking Coal & Iron Ore)

Top Picks - Tata Steel

Company

Sales (Rs Cr)

PAT (Rs Cr)

Reco

FY12E

FY13E

FY12E

FY13E

Tata Steel

124,889

128,715

7,747

8,175

BUY

SAIL

47,290

50,127

4,645

5,340

BUY

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