Hold Tata Metaliks; target of Rs 975: ICICI Direct

ICICI Direct's research report on Tata Metaliks

Tata Metaliks (TML) is a subsidiary of Tata Steel, which was established in 1990. TML has manufacturing facilities in Kharagpur, West Bengal, which produces pig iron and ductile iron (DI) pipes. • By H2FY23, TML would double its DI pipe capacity to 4 lakh tonnes • TML has healthy cash flows and a strong balance-sheet. It is one of the few players in the steel pipe sector having net cash position on its balance sheet.

Outlook

We downgrade to stock from BUY to HOLD. We value TML at Rs 975 i.e. 6.5x FY23E EV/EBITDA.

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