ICICI Direct's research report on Tata Steel
Tata Steel’s Indian operations registered healthy volume growth wherein for Q3FY17 the sales volume was at 3.0 MT, up 27.4% YoY and 14.3% QoQ. For the nine month period in April-December 2016, Tata Steel’s domestic operations sales volume was 7.8 MT, up 13.8% YoY.
OutlookSequentially, we expect consolidated EBITDA margins to increase from 11.7% in FY17E, to 13.8% in FY18E and further to 14.2% in FY19E (6.5% in FY16 and 12.3% in 9MFY17). We value the domestic operations at 6.5x FY19E EV/EBITDA and overseas operations at 5x FY19E EV/EBITDA. We have arrived at a target price of Rs 500 and have a HOLD recommendation on the stock.
For all recommendations, click here Disclaimer: 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
