We upgrade Tata Sponge (TSIL) to Buy with a revised TP of Rs1220 as we expect strong operational performance to be maintained led by better pricing, solid volumes and tight control on conversion costs leading to further improvement in spreads. TSIL has received a much needed relief by getting its related party resolutions passed in the re-voting which would help maintain status-quo in running of operations in the most efficient manner. Clarity on capex towards the build-up of new steel complex is still elusive but strong cash rich balance sheet...