Moneycontrol Be a Pro
Get App
Last Updated : Sep 18, 2018 02:23 PM IST | Source:

Hold Tata Sponge; target of Rs 1135: Centrum

Centrum recommended hold rating on Tata Sponge with a target price of Rs 1135 in its research report dated July 18, 2018.

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

Centrum's research report on Tata Sponge

We maintain our Hold rating on Tata Sponge (TSIL) with a revised TP of Rs1135 as we see valuations fair with strong operational performance likely to be maintained and surplus cash on books expected to be deployed as CWIP in the steel plant capex over the next few years. Q1 earnings were strong YoY led by better pricing, solid volumes and tight control on conversion costs. TSIL’s spreads in sponge iron business have remained strong but sustenance of the same at current high levels for long periods of time is difficult and hence we continue to build our annual estimates below the current run-rate. Clarity on capex towards the build-up of new steel complex is still elusive.


We revise our TP to Rs1135 and maintain Hold. Key downside risks are fall in sponge iron prices and higher coal costs while upside risks are higher volumes and better spread.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Jul 26, 2018 05:00 pm
Follow us on
Available On
PCI DSS Compliant
Make every wish come true
10% CashBack on Apparel
10% CashBack on Electronics
Swipe & Win iPhone 11 every hour