Nov 12, 2012, 03.47 PM IST
Shares of Tata Steel, the world's sixth largest steel making company dropped as much as 2.4 percent on Monday as CLSA has downgraded the stock from outperform to sell with a target price of Rs 325 after disappointing results.
"Results disappointed with EBITDA coming in 33 percent below estimates. Margins weakened sharply driven by the falling cost curve in case of India operations and weakening demand-supply in case of Corus and both factors are unlikely to reverse anytime soon," CLSA explained.
Operating profit margin was 6 percent - much lower than streets estimates - in second quarter as against 7.9 percent in a year ago period, indicating costs pressures still persist.
Earnings before interest, tax, depreciation and amortisation (EBITDA) went down by 20.7 percent year-on-year to Rs 2,044.7 crore in the second quarter earnings.
Today at 14:35 hours IST, the stock fell 1.9 percent to Rs 383.15 on the Bombay Stock Exchange. On Friday, it had lost 3.25 percent.
Tata Steel stock price
On December 12, 2013, Tata Steel closed at Rs 412.45, down Rs 6.15, or 1.47 percent. The 52-week high of the share was Rs 448.10 and the 52-week low was Rs 195.40.
The company's trailing 12-month (TTM) EPS was at Rs 54.27 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 7.6. The latest book value of the company is Rs 568.46 per share. At current value, the price-to-book value of the company is 0.73.
Action in Tata Steel
Video of the day
Dec 11 2013, 09:54
- in Business
Dec 4 2013, 11:08
- in FII View
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.