Neutral on Tata Steel: Angel Broking

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Angel Broking's report on Tata SteelRaw Material purchases impact EBITDA: Tata Steel’s standalone revenues for 2QFY2016 declined 12% yoy to `9,531cr (7% ahead of our estimate of `8,879cr), led by better than expected volumes and pricing. However, increased raw material expenses on account of external purchases of iron ore resulted in the EBITDA declining sharply by 40% yoy to `1,862cr, 3% below our expectation of `1,918cr. The adjusted net profit nearly doubled to `3,844cr led by a sharp jump in other income on account of gains from sale of quoted investments of `3,505cr, while interest expenses were lower on account of debt repayments in 1QFY2015. Outlook and valuation: Given the weak outlook on steel prices and with the European business already in the red at the operating level, we expect tough times to continue for the stock. The stock is currently trading at an EV/EBITDA of 6.8x FY2017E EBITDA. We retain our Neutral rating on the stock, says Angel Brokings research report.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.

Read More