Tata Steel Q3 Results Review - Europe Drag To Continue In Near Term: Prabhudas Lilladher

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..Prabhudas Lilladher Report.We cut our FY24E/25E Ebitda estimates by 14%/5% on poor performance from TSE. Tata Steel Ltd.’s Q3 consolidated operating performance was better than our estimate on account of stronger Tata Steel India. Tata Steel Europe continued to disappoint on weak volumes at Tata Steel Netherland, higher operating costs at Tata Steel UK and weak steel pricing. Tata Steel India Ebitda/tonne of Rs16,905 was above estimates on efficient blending of coking coal and higher sourcing of intermediates. In Q4, Tata Steel Netherland volumes are expected to improve and lower energy costs, higher operating leverage to reduce Tata Steel Netherland losses..Key parameters to watch are-progress on closure of Tata Steel UK blast furnaces and commissioning of Kalinganagar blast furnace and stabilisation which will drive volume growth in FY26E. We expect revenue/Ebitda/profit after tax compound annual growth rate of 6%/8%/31% over FY23-26E. At current market price, stock is trading at seven times/5.6 times enterprise value of FY25E/FY26E Ebitda. Retain ‘Accumulate’ rating with revised target price of Rs 137 (earlier Rs 140) valuing at six times enterprise value of March-26E TSI Ebitda..Click on the attachment to read the full report:.Tata Steel Q3 Results Review - India Margins Strong; Europe Continues To Struggle: IDBI Capital.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.

Tata Steel Q3 Results Review - Europe Drag To Continue In Near Term: Prabhudas Lilladher

Tata Steel Netherlands blast furnace VI to start production in Feb’24, targeting 6.5-7 mt volume from TSN in FY25.

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