Angel Broking has recommended neutral rating on Tata Steel , in its November 26, 2009.
"For 2QFY2010, Tata Steel's Consolidated Net Revenues increased 9% qoq to Rs25,395cr on the back of a 14% increase in Volumes to 6.2mn tonnes. Sales volume of the company's European operations increased 18% qoq to 3.9mn tonnes. Capacity utilisation increased to 78% in 2QFY2010 from 56% in 1QFY2010. At the CMP of Rs543, Tata Steel is trading at a P/E of 8.5x and EV/EBITDA of 6.3x on FY2011 estimates. With the threat of exports from China increasing and sustainability of higher utilisation rates in Europe a question mark, we remain Neutral on the stock with a Fair Value of Rs 521," says Angel Broking research report.
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