Tata Steel Ltd. share price target

Driven by better-than-expected consolidated sales volumes, Tata Steel's consolidated adjusted EBITDA came in higher than our estimate. Standalone operations reported sales volume of 3.58 million tonnes (MT), higher than our estimate of 3.2 MT. European operations reported steel sales of 2.57 MT, higher than our estimate of 2.3 MT. The consolidated topline came in at | 42423.9 crore. Consolidated adjusted EBITDA came in at ~| 7314 crore (our estimate: | 6508 crore). Domestic operations reported adjusted EBITDA/tonne of | 13619/tonne while European operations reported...

Tata steel consolidated net sales rose 26% to Rs 42423.86 crore in Q4FY19 compared to Q4FY18. The company operating margins fell 130 bps to 17.7%. %. As a result operating profits increased 17% to Rs 7513.28 crore. Cost of material consumed as a percentage of net sales (net of stock adjustment) increased 440 bps to 35.3%. Purchase of stock in trade was down 30...

A Prefer Play on the Steel Cycle: Tata Steel Ltd has reported better-than-expected earnings for Q4 and full year FY19 on the back of higher deliveries in India and improved realization across geographies.

Tata Steel's standalone EBITDA/t was down 13%/10% qoq/yoy to Rs13,845/t in Q4FY19, but ahead of our estimate of Rs2637/t. Its European ops reported Rs1696cr EBITDA which included Rs500cr toward the CERs and land sale. Adj. EBITDA/t rose 4.2%/15% yoy/qoq. The company continued to focus on debt reduction and has deleveraged the balance sheet by Rs6169cr during the quarter. During H2FY19, the net debt reduction has been to the...

25 April 2019 Tata Steels (TATA) 4QFY19 consol. EBITDA increased 12% QoQ (+16% YoY) to higher margins in Europe, partially offset by margins compression in India. EBITDA increased 9% QoQ to INR49.5b as sales grew by 21% QoQ to 3.6mt owing to destocking, partially offset by a 10% QoQ decline in EBITDA per ton to INR13,766/t as steel prices declined by INR3,500/t QoQ. EBITDA declined 22% QoQ to INR7.9b, led by a 37% fall in EBITDA per ton to INR6,895/t due to steel price decline, partially offset by strong sales growth of 24% QoQ to 1.14mt aided by destocking. EBITDA increased 79% QoQ to INR17b, led by 9% growth in sales tonnage, a reduction in operating cost on the restart of BF5 at Port Talbot and INR5b worth one-offs (sale of land and carbon credits). EBITDA increased 34% to INR294b and PAT rose 27% to INR101b, led by higher steel prices.

We remain positive on Tata Steel on the back of increasing focus on higher margin domestic operations. Tata Steel's standalone operations benefit from its integrated operations thereby clocking higher EBITDA/tonne vis-vis its domestic peers. After the recent correction, since the start of February 2019 both domestic as well as global steel prices have moved upward, auguring well for Tata Steel. Furthermore, with respect to the potential European JV so as to allay EU concerns, both ThyssenKrupp AG and Tata Steel have submitted concessions to European Union regulators in an effort to win antitrust approval for their steel joint venture. Both Tata Steel and...

Tata Steel Q3 profit jumps 76% YoY to Rs 2284 crore, misses Street estimates Tata steel consolidated net sales rose 23% to Rs 41219.91 crore in Q3FY19 compared to Q3FY18. The company operating margins fell 70 bps to 16.3%. %. As a result operating profits increased 18% to Rs 6723.33 crore. Cost of material consumed as a percentage of net sales (net of stock adjustment) increased 240 bps to 33%. Purchase of stock in trade was down 60...

ICICI Securities Ltd | Retail Equity Research Maintain sales volume estimates of domestic operations Domestic steel consumption, as per World Steel Association (WSA), is slated to increase 7.3% in CY18 and further by 7.5% in CY19. Being a formidable player, Tata Steel is likely to benefit from the same. Despite a muted sales volume in Q3FY19, the management has maintained sales volume guidance of ~12.4-12.5 MT for FY19E. South East Asian operations divestment to aid in debt reduction...

13 November 2018 Tata Steels (TATA) 2QFY19 consol. EBITDA increased 38% QoQ to INR89b, largely aided by one-offs (forex gains of INR9.7b and other gains of INR12.6b). Finance cost shot up 29% QoQ (+59% YoY) to INR21b due to the full impact of acquisition debt. perpetual bonds) remained stable QoQ at ~INR1,065b. FCF was offset by forex loss of INR35b during the quarter. EBITDA increased 18% QoQ to INR60b, driven by a 7% increase in volumes, 2% increase in steel prices and forex gains. Adj. EBITDA/t was flat QoQ at ~INR18,000. reported strong sales of 1.14mt on destocking, while production was flat QoQ at 1.

Indian operation reports strong performance for H1FY19 H1FY19 was marked by a consistent increase in domestic steel prices on a YoY basis, resulting in Tata Steel's Indian operations (standalone entity) reporting a healthy performance on all fronts. On a standalone basis, Indian operations clocked an EBITDA/tonne of | 17997/tonne (vs. | 10785/tonne in H1FY18). Sales volumes during the period were up 4.6% YoY to 6.2 MT. Revenues increased 26.2% YoY to | 34308 crore. EBITDA was at | 11068 crore implying a healthy EBITDA margin of 32.3% (vs....