'Add' Tata Steel Shares Maintains ICICI Securities, Revises Target Price — Here's Why

Tata Steel is acquiring 50.01% (majority) stake in Thriveni Pellets Private Ltd. for a consideration of Rs 6.4 billion, making it a joint venture with Lloyds Metals and Energy (49.99% stake)..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.Tata Steel Ltd. is now focusing on capacity expansion in India and cost rationalisation in Europe to improve its financial performance. Indian capacities are expected to be extended to 40 mmte from 26 mnte currently, potentially in next five-six years. Netherlands’ operations have the potential to earn better-than-historical Ebitda as the EU prepares for Carbon Boarded Adjustment Mechanism (CBAM). Proper implementation of the same could be a key monitorable. The brokerage do not expect UK’s operations to be profitable in near-to-medium term. Given the capex announcement, ICICI Securities raises capex for FY27/28E by 15-20%. Consequently, target price has been revised downwards to Rs 188 (from Rs 196), keeping the multiple intact at 7.0x FY28E EV/Ebitda. Maintain Add. .Key risks Weaker-than-expected steel demand. Delays in Europe’s cost translation plans..Click on the attachment to read the full report:.Tata Steel's Pellet Plant Deal To Be A Long-Term Margin Booster, Says Motilal Oswal — Check Target Price.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

'Add' Tata Steel Shares Maintains ICICI Securities, Revises Target Price — Here's Why

ICICI Securities revises target price on Tata Steel, maintaining 'Add' call - check details.

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