Moneycontrol PRO
Upcoming Event:Attend Algo Convention Live, 2 Days & 12+ Speakers at best offer Rs.999/-, exclusive for Moneycontrol Pro subscribers. Register now!

Neutral Tata Steel; target of Rs 1440: Motilal Oswal

Motilal Oswal recommended Neutral rating on Tata Steel with a target price of Rs 1440 in its research report date May 05, 2022.

May 07, 2022 / 01:34 PM IST
  • bselive
  • nselive
Todays L/H

Motilal Oswal's research report on Tata Steel

On a standalone basis, revenue/EBITDA/APAT grew 73%/33%/40% YoY to INR367b/INR122b/INR79b in 4QFY22. Revenue and EBITDA were broadly in line, while APAT was 9% above our estimate, led by a marginal 4% beat on EBITDA, lower-than-estimated finance cost, as well as higher other income. On a consolidated basis, TATA reported a revenue/EBITDA/APAT of INR693b/INR150b/INR100b in 4QFY22, up 39%/6%/31% YoY. The consolidated result was in line as other segments and forex adjustments offset the beat in its European result. One-time provisioning of INR13.4b (INR5.4b towards inventory write-off and INR8b towards shortfall in meeting its mining dispatch target after the acquisition of mines) was made in other subsidiaries. TSE’s (Tata Steel Europe) earnings were a surprise, with an EBITDA/t of USD241 (est. USD178), even though ASP was in line. TSE continues to ride the steel price boom in Europe after the ban on steel exports from Russia and unavailability of steel from Ukraine.


The stock trades at 4.3x/4.4x our FY23/FY24 EV/EBITDA estimate. On a P/B basis, the stock is quoting 1.2x/1.1x our FY23/FY24 estimate. We maintain our Neutral rating with a revised SoTP based TP of INR1,440 share (from INR1,500 earlier).

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.

Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Broker Research
first published: May 7, 2022 01:34 pm
ISO 27001 - BSI Assurance Mark