Diwali Dhamaka - Tata Steel

Buy - TATASTEEL

CMP (NSE) 16:00, 25 Jan

1,109.10 9.90.9%

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Reco. Price

1,285

Period

12-Months

Target Price

1,897

upside

%

Stop Loss

0

Last updated on

03 Nov, 2021

Tata Steel is India’s second-largest private sector steel company. Established in 1907, it now boasts of 19.6mtpa of finished steel capacity in India.

TSE’s NSR jump has lagged spot prices, as ~60% of volumes entail a six-monthly re-pricing. Management indicated a EUR200/t jump in NSR at TSE in 2Q, as contracts have reset at higher pricing. This should continue inching up if such steel prices sustain.

Combined with strength in India operations due to elevated steel prices, this drives 22%/15% upgrade to the FY22/23ii consolidated EBITDA.

Index vs Stock Relative Chart

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