Initiate coverage with a BUY (TP Rs 687, at 7.0/6.0x EV/e for India/Europe operations). Tata Steel delivered strong numbers (consolidated EBITDA/APAT 53.4%/4.7x YoY), as both Indian and European operations delivered healthy EBITDA/t of Rs 10,786 and USD 80, respectively. Reported profits were boosted owing to FX gains (Rs 5.4bn) in the subsidiaries.