Business & Investment

Tata Steel Ltd .: Steel stock rebound leaves more steam, CLSA says

Mumbai: Steel stock According to CLSA, the risk to compensation remains favorable and is likely to continue what was seen last year.

“The upward revision of the consensus forecast and the short-term strength of steel prices are likely to drive further stock prices,” CLSA said.

A steel price of Rs 1,000 per ton higher than the base case leads to a $ 235 million higher leverage.

Said the brokerage firm.

CLSA continues to prefer Tata Steel in the steel sector.

“Leveraging remains an important focus, but we expect Karinganger Phase 2 expansion to be announced next year,” CLSA said. Profitability is staggering given rising prices in Europe. It could be, “he said, raising the target price from 860 rupees to 950 rupees. While maintaining the purchase evaluation. CLSA has upgraded Tata Steel from sale to outperform and raised its target price from 340 rupees to 490 rupees.

“We expect significant revenue growth over the next two years as domestic iron ore supply improves and production increases from commissioning new capacities,” CLSA said.

The brokerage firm said it was bullish on JSW Steel, which had improved risk of compensation. CLSA said it awaits further clarification, but with current spreads, the acquisition of Boushan Power could be value-neutral.

Tata Steel Ltd .: Steel stock rebound leaves more steam, CLSA says

https://economictimes.indiatimes.com/markets/stocks/news/steel-stocks-rally-has-more-steam-left-says-clsa/articleshow/81756078.cms Tata Steel Ltd .: Steel stock rebound leaves more steam, CLSA says

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