Retain buy on Tata Steel, India capacity likely to double in 5 years: Deutsche Bank
The research house is of the view that the rise in share of value-added products is likely to boost margins. Deutsche Bank has raised FY18 earnings by 2 percent and 4 percent for FY19.
Global research firm Deutsche Bank has reiterated a buy call on Tata Steel and has raised the target price by 3 percent to Rs 870 per share. The research firm believes that its India capacity could double in five years.
The house is of the view that the rise in share of value-added products is likely to boost margins. Deutsche Bank has raised FY18 earnings by 2 percent and 4 percent for FY19.
The research firm is of the view that India's earnings before interest, tax, depreciation and amortization (EBITDA) per tonne to grow at 14 percent over FY17-19 to Rs 12,306 per tonne and India volume growth of 14 percent over FY17-19.
On an interview to CNBC-TV18, Chairman N Chandrasekaran said that Tata Steel is a well-run business and it is slated to perform extremely well as there is a demand as well as a market in the country adding that the company has potential to double its domestic capacity.At 11:54 hrs Tata Steel was quoting at Rs 693.65, up Rs 3.00, or 0.43 percent. It has touched an intraday high of Rs 698.10 and an intraday low of Rs 691.65.