Brokerage: CLSA | Rating: Buy | Target: Raised to Rs 800
The brokerage house observed that the company’s margin expectedly dipped quarter on quarter in both India and Europe, but still better than estimates. Further, it believes that the multiples can expand on high possibility of de-risking in Tata Steel Europe.
Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 625
The global brokerage firm said that the domestic operating profit was a miss, but Europe surprised positively. Further, it said that benefits of Kalinganagar ramp-up will be a key positive for better earnings momentum. It also believes that benign coking coal prices could be offset by high iron ore cost for European business.
Brokerage: Credit Suisse | Rating: Outperform | Target: Raised to Rs 720
Credit Suisse said that the operating profit for quarter under review beat its consensus estimates for India and Europe by 27 percent. Further, it added, the management continues to expect a final agreement on the UK Pension Resolution shortly. It also said that the current fiscal’s earnings per share (EPS) fell 30 percent on a different accounting treatment of Tata Motors stake sale under IndAS accounting system.
Brokerage: Credit Suisse | Rating: Downgrade to Underperform | Target: Rs 240
The brokerage observed that the headwinds for this fiscal include virtually no pricing action in India or Europe. While the anti-dumping duty will be positive, it reckons the stock price already reflects this. Further, a raw material inflation should abate as rubber prices have started to come off.
Brokerage: Credit Suisse | Rating: Outperform | Target: Rs 115
Credit Suisse said that there were no surprises in Q1 results, while the management retained FY18 outlook in mid-single digit revenue growth.
Brokerage: CLSA | Rating: Buy | Target: Rs 1,120
CLSA said that the company saw encouraging volume growth and some recovery after two disappointing quarters. The volume growth of 9 percent due to high base of the first quarter of last year was a key positive, it added. The company also increased margin expectation to 25-27 percent against 25 percent earlier, it added. Going forward, the company’s Kolkata lab beginning operations in the third quarter could be the next growth driver, it added.
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