We downgrade Tata Sponge (TSIL) to Hold with a revised TP of Rs1165 as recent sharp run-up leaves limited upside on the table given the fact that surplus cash on books would be deployed as CWIP for steel plant capex over FY19-20E. TSIL's spreads in sponge iron business have continued to improve and outlook on the sustenance of the same is strong which gives confidence of smart uptick in earnings over FY18-19E. Q3 earnings were strong YoY led by better pricing and company remains on track to achieve its full year volume targets. Stock trades at FY19E EV/EBITDA of 4.9x and a five year AOCF/EV yield of 6.8% which is fair....