JSW, Tata steel rally on provisional safeguard duty news

Steel Stocks in FocusA government-appointed panel on Monday gave nod to 20 percent provisional safeguard duty on specific steel products for a period of 200 days. The move will help the domestic steel industry from low-priced imports from China, Japan and Korea. The decision of the panel, comprising of the commerce, steel and revenue secretaries, comes after the Directorate General (DG) of Safeguards recommended the duty on September 9. The import duty on flat steel products will be at 12.5 percent and on long products, it will be 10 percent. Finance minister Arun Jaitley said: "Keeping in mind the sudden surge and the injury being caused to the domestic industry, a provisional duty of 20 percent on certain categories of steel products has been issued with effect from today. And therefore all imports coming from anywhere in the world because this has to be applied on an MFN basis will be liable for this duty."Reacting to the move, analyst Chintan Mehta of Sunidhi Securities said the move will result in a slight price hike of imported products and help the domestic industry.CLSA ON Tata Steel: HRC Prices: 10 percent Hike Impact. 4 percent upgrade to FY16 consolidated EBITDA. 26 percent upgrade to FY16CL consolidated EPS. Sell call; target of Rs 220/share.CLSA ON JSW STEEL: HRC steel contributes 60 percent to sales volumes. 5 percent upgrade to FY16 consolidated EBITDA. 27 percent upgrade to FY16CL consolidated EPS. Sell call; Target of Rs 675/share.The Reserve Bank has allowed foreign investors to invest up to 40 percent of the paid up capital in Maruti Suzuki under the Portfolio Investment Scheme. The foreign shareholding by Foreign Institutional Investors (FIIs)/Registered Foreign Portfolio Investors (RFPIs) in Maruti Suzuki India Limited have gone below the revised threshold limit, RBI said in a release. "Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect," RBI said. RBI said Maruti Suzuki has passed resolutions at its Board of Directors' level and a special resolution by shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs.JSW Steel up by 24 percentTata Steel up by 21 percentGoldman Sachs View on Kotak Mahindra Bank: Upgrade to Neutral from Sell, 12-month Target of Rs 646/share. Stock down by 10 percent in the last month. Trading at 3.5x 12-month forward standalone book. Valuation down to long-term mean; Risk reward is balanced.Goldman Sachs View on Yes Bank: Upgrade to 'Buy'; Add to Conviction List post correction, 12-month Target of Rs 890/share. Stock down by 9 percent over last 3 months. Trading at 2x 12-month forward P/BV below its avg since FY08. Stock providing an attractive entry point. Estimate potential EPS CAGR of 29 percent over FY15-18e. Estimate average RoA of 1.7 percent, RoE of 21.6 percent over FY15-18e.Goldman Sachs View on Axis Bank: Upgrade to Buy from Neutral, Target of Rs 562/share. Trading at 2x 12-month forward P/BV; Below 12-year mean. Valuations attractive currently. Business profile continues to improve with a well-diversified loan book. Asset quality concerns appear to be priced in.Goldman Sachs View on ICICI Bank: Upgrade to Buy from Neutral, 12-month Target of Rs 340/share. Stock down by 20 percent over last 6 months. Trading at 1.6x 12-month fwd P/BV. Expect retail loan book to grow by 21.4 percent CAGR over FY15-18. Higher NPLs remains a concern given weak macros. See structural issues in infra, correction in commodity space. Goldman Sachs View on Bajaj Finance: Upgrade to Neutral from Sell, Stock up by 37 percent since our January 2015 downgrade. Raising EPS estimate to 2 percent as banks lower base rates. See earnings growth at 33% CAGR from FY15-18. Avoided any asset quality issues despite high growth. Stock is one of the most expensive NBFCs in our coverage. Trading at 3x FY17e PB & 16.2x PE. Trading at a 14 percent premium to sector. Target price increased to `4,810/sh from Rs 4,470/share.BofA ML View on Bharat Forge: Cut target price by 16 percent to Rs 900/share. Weak demand drives de-rating. Volume growth at 5.8 percent Q1FY16 versus 21 percent Year on Year. 46 percent rev from supply of steel forgings to non-auto demand in FY15. Non-auto demand slowdown starting to hurt. Truck part exports have peaked, could disappoint in FY17.Orders for new trucks have been declining since March 2015.Nava Bharat ventures has pact deal with Tata Steel for conversion of chrome ore into ferro chrome. It Will commence on receipt of ore from Tata Steel in September. Agreement initially till March 2016. Agreement can be extended for a further 4 years. Entire smelting capacity of Odisha plant dedicated for Tata Steel. Could produce 70,000 tonnes of carbon ferro chrome/year.Gujarat Gas to be listed today, Stock delisted in May 2015 at Rs 743/share. Relisting post merger of various companies with self. Amalgamated GSPC Gas, Guj Gas into GGL. Amalgamated Guj Gas Fin Svcs, Guj Gas Trading into GGL. New entity is largest city gas distributor with volumes of nearly 6.5 mmscmd.