Quotes with Resistance & Support
Market Information

Buy Tata Steel, target of Rs 270: Karvy

Posted on: March 3rd, 2009 and is filed under Brokerage Recommendations.

Karvy Stock Broking has maintained its buy rating on Tata Steel with price target of Rs 270 in its March 3, 2009 research report. “Tata Steel’s Corus and other subsidiaries have reported EBIDTA of Rs 28.6 billion during Q3FY2009, which is 26% and 65% lower on YoY and QoQ respectively. Though the numbers are better than consensus estimates, the higher than expected EBITDA was mainly on account of undisclosed amount of hedging gains. EBITDA margins fell 350 bps YoY to 8.6%.”

“We are revising our earnings estimate for FY2009 and FY2010. Earlier, we had factored in a 10% fall in steel prices and a 15% fall in raw material prices over FY2009 price level. Our revised estimates take into account a 25% fall in steel price a 20% fall in raw material price. As a result, our APAT estimate for FY2010 comes to Rs 48 billion, which is 30% lower than the previous estimate. Accordingly, our revised price target for the stock comes to Rs 270. We maintain our BUY rating,” says Karvy Stock Broking’s research report.

Tags: , , , ,

Similar Posts:


+ve 30 DMA    50 DMA    150 DMA    200 DMA
-ve 30 DMA    50 DMA    150 DMA    200 DMA

Latest Query

Samrudhiglobal.com wishing you and your friends and family Advance xmas and Happy New year...view more »
- by Sam
Status: Awaiting reply

Market Stats

Search Our Archives

Latest Investment Idea

Recent Comments