Tata Steel Ltd. share price target

Focus back on growth but with an eye on leverage Rising carbon costs in Europe a key concern Tata Steel (TATA)'s FY21 Annual Report highlights the ambition of the company to maintain leadership in volumes, cost, and sustainability. With improved cash flows, the focus is back on growing the India business, wherein it aims to double capacity to 35 40mt by 2030. However, it plans to tread cautiously on this path as debt repayment remains the focal point for the management. On Tata Steel Europe (TSE), the management palpably appears concerned about the tightening emission norms in...

Tata Steel reported better than expected EBITDA for Q4FY21 as its consolidated EBITDA jumped almost 2x YoY to Rs143 bn. The sharp increase in EBITDA was led by India operations where adjusted EBITDA/t increased to Rs27,828 (+38% QoQ, +221% YoY) on sharp increase in steel realizations. Tata Steel Europe EBITDA/t improved to Rs4,821 (vs. loss of Rs3,438 in Q3FY21) although it was slightly weaker than our estimate. Tata Steel's net debt fell by Rs107 bn to Rs750 bn. In FY22, it aims to lower its debt further...

Tata Steel (TATA) has been a key beneficiary of rising steel prices. As expected, it reported a strong 4QFY21, with consolidated EBITDA rising 205% YoY to INR142b (its highest ever) on the back of higher prices. Net debt fell INR123b QoQ to INR826b (lowest since Mar'18). We expect steel prices and margin to stay strong on tightening demandsupply in Asia and raise our FY22E/FY23E EBITDA estimate by 77%/36% and our TP by 35% to INR1,205/share. Net debt is expected to decline by a further INR188b in FY22E to INR638b, despite the resumption of capex for the 5mtpa expansion of the Kalinganagar plant....

Tata Steel's consolidated net debt declined from | 104779 crore as on March 2020 to | 75389 crore as on March 2021 (total debt repayment during FY21 was at | 29390 crore while for Q4FY21 was at | 10781 crore). For Q4FY21, Tata Steel's consolidated free cash flow was at | 8826 crore while for FY21 Tata Steel's consolidated free cash was at | 23748 crore. Furthermore, Tata Steel's consolidated operations net debt to EBITDA improved to 2.44x while...

Tata Steel jumped 5.04% to Rs 1122.85 after the company reported a consolidated net profit of Rs 6644.15 crore in Q4 FY21 as against net loss of Rs 1481.34 crore in Q4 FY20. Net sales during the quarter increased 39.4% year-on-year (YoY) to Rs 49977.40 crore. The steel major reported a pre-tax profit of Rs 9356.86 crore in the fourth quarter compared with net loss of Rs 1870.55 crore reported in the same period last year. EBITDA surged at Rs 14,290 crore in Q4 FY21 compared with Rs 4,824 crore in Q4 FY20 as Rs 9,652 crore in Q3 FY21....

Tata Steel Long Products (TSLP) is a leading long steel (bars and wire-rods) manufacturer with client base in high value-added sectors (Automotive, Industrial products), backed by best-in-class backward integrated plants. TSLP has seen massive cost improvements in last 18 months after integration of acquired facilities of Usha Martin and is all set to see massive earnings growth going ahead led by i) low-cost operations with backward integrated facilities, ii) increased forward integration and higher value-added finished steel sales and iii) massive reduction in leverage leading to lower interest costs. TSLP also announced its proposed merger with Tata Metaliks (TML) in Nov'20 which is expected to...

Tata Steel's Q3FY21 operational performance was better than our estimates. Consolidated topline came in at | 39594 crore (up 7% QoQ, 11% YoY), broadly in line with our estimate of | 39091 crore. During the quarter, for Indian operations while sales momentum was strong, deliveries were down 8% QoQ, 4% YoY to 4.65 million tonnes (MT) primarily due to lower opening inventory post strong sales in Q2FY21. European operations reported sales volume of 2.11 MT (down 10% YoY, 7% QoQ). Consolidated EBITDA was at | 9464 crore (up 55% QoQ, 161% YoY), higher than our estimate of | 8825...

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

Tata Steel's standalone Q3FY21 operating performance was strong; however, European operations financial performance was weak. Consolidated EBITDA jumped sharply to Rs97 bn (+171% YoY, +60% QoQ) led by strong improvement in standalone operations. However, Tata Steel Europe (TSE) reported a EBITDA loss at Rs3,436/tonne vs. loss of Rs2,036/tonne in Q2FY21. Tata Steel's net debt fell by Rs103 bn QoQ to Rs862 bn as it...

Tata Steel (TATA) reported a strong 3QFY21, with consolidated EBITDA rising 161% YoY to INR94.6b (the highest ever) on the back of higher prices. Furthermore, net debt fell INR103b QoQ to INR884b (the lowest in the last 12 quarters), led by working capital release of INR72b. We estimate 4QFY21 EBITDA to be even stronger at INR132b (+40% QoQ), with standalone EBITDA/t of INR25,780/t (the highest in 12 years). Spot steel spreads have, however, declined in the past month, and we expect further moderation on softening prices. Moreover, a structural solution...