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    HomeNewsBusinessStocksHold Tata Steel; target of Rs 340: Axis Direct

    Hold Tata Steel; target of Rs 340: Axis Direct

    ICICI Direct recommended hold rating on Tata Steel with a target price of Rs 340 in its research report dated September 14, 2016.

    September 19, 2016 / 11:03 IST

    ICICI Direct's research report on Tata Steel

    Tata Steel reported Q1 consolidated EBITDA of Rs 32 bn vs. our and consensus estimate of Rs 28 bn, largely due to higher margin in European operations. Higher steel prices, a weaker pound and divestment of low margin long products business in Europe resulted in better performance of European operations.
     

    Volatile steel, RM prices: After rising sharply in Q1, domestic steel prices have corrected from Jun‘16. Also, coking coal prices have shot up almost 100% in last two months to USD 180/ton. Higher coal prices would likely put pressure on Tata Steel and other steel companies’ margins Q3 onwards. Supply side pressure likely to cap steel realizations in domestic market.For all recommendations, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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    first published: Sep 19, 2016 11:03 am

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