Tata Steel management expects steel demand in India to recover sharply post the monsoon and regional festivities in 1HCY22

Chirag Batavia • 14 February 2022

OPEN

TATA STEEL (TATASTEEL)


  • Management expects steel demand in India to recover sharply post the monsoon and regional festivities in 1HCY22


  • Demand in Europe has recovered to pre-pandemic levels despite auto demand being impacted by semiconductor shortages.


  • Management indicated that margin is expected to improve sequentially in Europe due to contract revisions, whereas in India it is expected to contract further.


  • Management shared that they can reach 40-50 mtpa steel capacity in India from the current 18 mtpa through brownfield expansions.


  • TATA has reduced (adjusted) net debt by 8% QoQ to Rs69300 cr (-25% YoY) as of 3QFY22.


  • TATA’s NINL acquisition, although expensive, opens growth options and internal cash-flows would comfortably fund growth projects without adding leverage.


  • Stock trades at attractive 4.5X EV/EBITDA FY2023E despite assuming further moderation in margins.


Note: The above is a brief note on the company, based on the inputs of the KIE research report dated 8th February 2022, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental. Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Tata Steel and other Indian stocks? Open your NRI Demat & Trading Account  with Lakshit Financial

Lakshit Financial Authorized Person of Kotak Securities Limited in cash segments of BSE & NSE and NSE F&O segments with NSE. Lakshit Financial registration number: BSE CASH AP0106730124228 | NSE CASH AP029177621 | NSE F&O AP029177621.Registered Office: Lakshit Financial, ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India. Kotak Securities Limited. Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. CIN: U99999MH1994PLC134051. SEBI Registration No. INZ000200137 (Member of NSE, BSE, MSE, MCX & NCDEX). Member Id: NSE-08081; BSE-673; MSE-1024; MCX-56285; NCDEX-1262. AMFI ARN 0164, PMS INP000000258 and Research Analyst INH000000586. NSDL/CDSL: IN-DP-NSDL-23-97.
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please refer the Risk Disclosure Document issued by SEBI and go through the Rights and Obligations and Do's and Dont's issued by Stock Exchanges and Depositories before trading on the Stock Exchanges .

NRI Product Page

DID YOU KNOW? As an NRI/OCI, you can invest in IPOs, Mutual Funds and purchase Shares, ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click here to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Contact Us

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)


Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.


*The above process does not apply to US/Canada clients.

Share by:
gtag('config', 'AW-634979631');