Tata Steel Ltd. share price target

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 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,...

The company operating margins rose 540 bps to 16.4%. As a result operating profits increased 60% to Rs 6110.78 crore. Other income increased 21% to Rs 222.14 crore. Interest cost was up 4% to Rs 1940.24 crore. Depreciation rose 6% to Rs 2261.13 crore....

Discussion starts for potential sale of Netherland plant The company has initiated the process to separate Tata Steel Netherlands, Tata Steel UK and will pursue separate strategic paths for the Netherlands, UK business in future. Tata Steel has entered into negotiation with SSAB, the Swedish company, to sell its Netherland facility including Ijmuiden steelworks (time frame of six to nine months to complete, if the potential transaction happens). The company is committed to deploying proceeds of any strategic restructuring towards additional deleveraging of the balances...

Tata Steel reported stronger than expected profitability in Q2FY21 as EBITDA/net profit were significantly ahead of our and street forecasts. Tata Steel's EBITDA jumped 60.8% YoY at Rs61 bn (above our estimate of Rs35 bn and street forecast of Rs40 bn) on higher realizations and costs control. Tata Steel cut its net debt by Rs82 bn in Q2FY21 to Rs964 bn. Tata Steel is in talks with Swedish, SSAB to sell its Ijmuiden capacity (7 mtpa)- the...

Tata Steel Ltd. reported operating margins fell 1290 bps to 2.1% but Current operating level is around 95%, misses estimates Tata steel consolidated net sales fell 32% to Rs 24288.51 crore in Q1FY21 compared to Q1FY20....

Tata Steel (TATA) reported Q1FY21 EBITDA below our/consensus estimates by 76%/61% at Rs5.1bn (down 89% QoQ/down 91% YoY), due to lower than expected earnings across operations. Impacted by weak spreads and lower volumes, TATA Steel Europe (TSE) reported EBITDA loss of US$82mn (v/s PLe: Loss of US$45mn and positive EBITDA of US$9mn in Q4FY20). Indian operations earnings missed our/consensus estimates by 32%/18% owing to lower volumes and higher than expected costs. Domestic EBITDA margins fell 53% QoQ/55% YoY to Rs5,900/t (PLe:Rs8,420)....

Tata Steel reported subdued Q1FY21 results wherein consolidated topline came in line with our estimate while consolidated EBITDA was notably lower than our estimate. The EBITDA/tonne of both Indian, European operations came in lower than our estimate. Standalone operations reported sales volume of ~2.1 million tonnes (MT). European operations reported steel sales of 2.0 MT, marginally higher than our estimate of 1.9 MT. Tata Steel BSL reported sales volume of 0.7 MT (higher than our estimate of 0.65 MT). Consolidated topline was at | 24289 crore (down 32% YoY, 28% QoQ),...

15 August 2020 Tata Steels (TATA) 1QFY21 consolidated EBITDA at INR5b (-91% YoY) was the weakest in the past 10 years. The COVID-19 crisis led to a sharp decline in both volumes and margins across all entities. Margin outlook in Indian operations, however, is much better with prices bouncing back to near pre-COVID levels. Europe, though, should remain a drag with EBITDA losses expected to continue in the near term. We have raised FY21/FY22E EBITDA estimates by 16%/7% to factor in the improved outlook in Indian operations. However, leverage remains unfavorable at 6.8x FY21 EBITDA. reported EBITDA plunged 89% QoQ (-91% YoY) to INR5.1b (v/s est. INR10.3b) in 1QFY21, led by significantly lower profitability in Tata Steels India operations and losses in Europe. Adjusted EBITDA (eliminating impact of forex movement on investments) was also weak at INR10.4b (-81% YoY).