Metals, Mining Q2 Results Preview - Strong Quarter Due To Lower Raw Material, Weak Base: Prabhudas Lilladher

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.We expect our metals coverage universe to report healthy performance in Q2 FY24, owing to lower raw material and energy prices, continued strong demand momentum despite seasonally weak monsoon quarter and weak base of Q2 FY23. We expect overall Ebitda/profit after tax growth of ~48%/ 179% YoY (2%/ -5% QoQ) for our coverage universe (excluding Jindal Stainless Ltd.). Key monitorables would be rising coking coal prices, progress on capex, outlook on demand from China and developed countries. .Top Picks: Hindalco Industries Ltd. We believe Hindalco is well placed amongst the space as-Novelis is expected to witness gradual improvement in per ton Ebitda over next few quarters, led by resilient developed economies and gradual improvement in consumer demand from China;fall in thermal coal prices and opening of captive coal mines to benefit India business; andrising focus on high margin value added products. Maintain 'Buy with target price of Rs 557. .Jindal Steel and Power Ltd. We remain positive on JSPL given-strong 16% compound annual growth rate in steel volumes over FY23-26E led by ongoing Angul capacity expansion,commissioning of 5.5 million tonnes per annum hot strip mill to improve product mix, andits margin improvement projects such as 12 mtpa pellet plant, 18 mtpa slurry pipeline and four coal blocks to drive margins. Maintain 'Buy' with target price of 812..Tata Steel Ltd.Tata Steel’s Q2 FY24E performance is expected to be weakest among peers due to further drag on Tata Steel Europe Ebitda losses led by lower net sales realisation, poor volumes and Tata Steel UK operating losses. We remain positive given-strong double digit volume growth potential for TSI post commissioning of 5 mtpa KPO II by Q1 FY25,better clarity on Tata Steel UK with £500 million grant from the UK government for 3 mtpa electric arc furnace and reduction of losses from Tata Steel UK, andfocused deleveraging to keep balance sheet healthy. Maintain 'Buy' with target price of Rs 144..Click on the attachment to read the full report:.Oil And Gas Q2 Preview - Operationally Weak Results Likely: Prabhudas Lilladher.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Metals, Mining Q2 Results Preview - Strong Quarter Due To Lower Raw Material, Weak Base: Prabhudas Lilladher

Sharp fall in steel prices to negate benefit of lower coking coal prices.

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