Tata Steel Ltd. share price target

Domestic operations to account for ~71% of capacity by 2025 In India, Tata Steel has operations in Jamshedpur (10 MT), Kalinganagar (3 MT), Tata Steel BSL (5.6 MT) and Tata Long products (1 MT), aggregating to 19.6 MT. Indian operations' key assets viz. Jamshedpur, Kalinganagar, Angul have globally cost competitive position, aiding overall EBITDA margins. Going forward, Tata Steel is planning to increase India capacity to 30 MT by 2025 through organic & inorganic routes, thereby increasing share of higher margin domestic capacity to 71% by 2025, auguring well for company....

Tata Steel Limited is a diversified steel producer. The Company is engaged in the business of steel making, including raw material and finishing operations.

In India, Tata Steel has operations in Jamshedpur (10 MT), Kalinganagar (3 MT), Tata Steel BSL (5.6 MT) and Tata Long products (1 MT), aggregating to 19.6 MT. Indian operations' key assets viz. Jamshedpur, Kalinganagar, Angul have globally cost competitive position, aiding overall EBITDA margins. Going forward, Tata Steel is planning to increase India capacity to 30 MT by 2025 through organic and inorganic routes, thereby increasing the share of the domestic capacity to 71% by 2025. Currently, the 5 MT Phase-II expansion at Kalinganagar is on track. Recent tax cuts, would benefit Indian...

Tata Steel Limited is a diversified steel producer. The Company is engaged in the business of steel making, including raw material and finishing operations.

Tata Steel is a leader in the global steel industry with operations spanning across 26 countries with key operations in India, Netherlands and United Kingdom. Company primarily caters to customers in automotive,...

Tata Steel Ltd has recorded moderate consolidated sales growth of 1.3 percent to Rs. 359471 Mn in Q1FY20 as against Rs. 354941 Mn in Q1FY19 and our estimate of Rs. 384556 Mn on YoY basis. Revenue growth was impacted by lower realizations across geographies with weakening economic activities and uncertainty around USChina trade conflict.

(mt) and 6.34 mt respectively. The company operating margins fell 290 bps to 15%. As a result operating profits decreased 15% to Rs 5376.90 crore. Cost of material consumed as a percentage of net sales (net of stock adjustment) increased 420 bps to 37.8%. Purchase of stock in trade was up 40 bps to 4.3%, Employee benefit expense fell 10 bps to 12.8% and other expenses decreased 140 bps to 31.1%. Other income decreased 29% to Rs 251.1 crore. Interest cost was up 9% to Rs 1806.43 crore....

fall in EBITDA at US$9mn (PLe:USD$125mn). Operational issues and sharp fall in spreads impacted TSE's earnings. Due to weak margins in TSE, we cut our EBITDA/EPS estimates for FY20E by 4%/18%. Despite sharp increase in iron ore prices, steel prices softened by US$20-25/t in last couple of months. In spite of serious trade restrictions imposed on its imports by various countries, China acted in a disciplined manner with reduced export intensity and stable domestic demand. On the contrary, RoW (ex-China), the so called disciplined and earnings focused markets witnessed...

The European business needs to fund ~US$125 million of interest and ~US$325-350 million of sustainable capex. Hence, the European business requires an annual EBITDA to the tune of...

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...