Prabhudas Lilladher is bullish on Tata Steel has recommended buy rating on the stock with a target price of Rs 840 in its research report dated November 14, 2018.
Prabhudas Lilladher's research report on Tata Steel
Tata Steel (TATA) reported Q2FY19 earnings above our estimates on the back of beat in standalone operations. Domestic operations reported 10% QoQ rise in EBITDA/t to Rs18,856/t (PLe:Rs17,325/t) due to better than expected realisations. Realisations are expected to remain stable on the back of currency depreciation and likely increase in global prices ahead of winter cuts in China. We upgrade our EBITDA estimates for FY19e/FY20e by 8%/7% to factor in higher margins in domestic operations.
Outlook
We reiterate BUY with TP of Rs840, EV/EBITDA 6x FY20e.
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