Tata Steel Q1 results: Europe to weigh; analyst views, share price targets & more

 

Tata Steel may report up to 95 per cent year-on-year (YoY) drop in June quarter profit on a 6-11 per cent fall in sales. The numbers would be dragged by losses at Europe, thanks to  weak demand and higher costs, partially offset by improved sequential realisations.

Read More: Who Is Bharat Jain? Meet World’s Richest Beggar Who Seeks Alms Despite Being Crorepati

Kotak Institutional Equities pegs Tata Steel‘s June quarter adjusted profit at Rs 350.30 crore compared with Rs 7,105.20 crore in the year-ago quarter. It sees June quarter sales at Rs 59,400 crore compared with Rs 63,430 crore, down 6.4 per cent YoY.

“We expect steel realisations to remain almost flat QoQ (fall 16 per cent YoY) on account of better product mix and auto contract revisions. We expect standalone volumes to increase 18 per cent YoY (fall 8.3 per cent QoQ) to 4.56 million tonnes. India Ebitda per tonne will decline 19 per cent QoQ to Rs 13,599 per tonne (down 36 per cent YoY) led by higher input costs,” it said.

Elara Securities expects Tata Steel to report recurring profit at Rs 437.50 crore. It sees sales to drop 10.7 per cent YoY to Rs 56,637 crore. Motilal Oswal pegs profit figure at Rs 969.70 crore. It sees sales at Rs 59,145.30 crore. The brokerage, which has a share price target of Rs 112 on the stock, said steel prices which have corrected almost 10-15 per cent since February and have neared bottom and that a majority of the downside has been priced with no major price correction expected in the near term.

Read More:-Income Tax Day 2023: Why is July 24 Celebrated As Aaykar Diwas? Date, History and Significance

“We await details on debt reduction and capex timeline, which will double the domestic capacity by FY30. The management guidance on continuation, pension liability, and support for UK business are key monitorables,” the brokerage said.

Analysts said China’s central bank recently extended its policies (announced in November 2022) to support the real estate market till the end of 2024. The extended policies are likely to encourage financial institutions and property firms to actively support property developers. This could likely aid the real estate sector in China with further measures expected going forward, they said.

“Metal names have reacted positively to anticipated demand uptick in China, even as demand greenshoots are yet to be seen on the ground. China remained active in export markets, with YTD exports up 35 per cent YoY. We remain constructive on the metals space with Hindalco/JSPL/Tata Steel being our preferred pick,” JM Financial said in a recent note.

This brokerage, meanwhile, believes Tata Steel may report a consolidated loss of Rs 900 crore for the quarter while it pegs its consolidated sales at Rs 56,900 crore.

Read More:-Crush Financial Anxiety: Check Expert Tips On How To Take Control Of Your Money!

The average stock price on the stock at Rs 129, as per the publicly available Trendlyne, suggest 11 per cent upside.

Comments

Post a Comment

Popular posts from this blog

Senior Citizen Train Ticket Discount: Government has issued a new statement regarding giving discount to senior citizens on train tickets, know the details here

Image
  Senior Citizen Train Ticket Discount: Once again a demand has been made in the Lok Sabha to give discount to senior citizens on train tickets. Senior Citizen Train Ticket Discount:  Railways has withdrawn the discount given to senior citizens on train tickets since the Corona period. However, from time to time there has been a demand to restore this concession given to senior citizens in trains. Even in the winter session of the Lok Sabha, some members raised the demand for increasing fare concessions and facilities for senior citizens traveling in trains. However, even before this, Railway Minister Ashwini Vaishnav has told in the Lok Sabha that during the train journey, every passenger is given an average subsidy of 53 percent on the train ticket. Apart from this, he also told who gets discount on tickets while traveling by train. Demand for discount in train tickets raised again During Zero Hour in the House, Janata Dal (United) MP Kaushalendra Kumar said that before the ...
Read more

Cash Transaction Rules: Income tax rules on cash transaction between Husband-Wife and Son-Father, know rules

Image
  Cash Transaction Rules: Income tax keeps an eye on our every transaction. But is there any tax on cash transactions or can Income Tax send a notice? Or how much cash transaction can take place between you and your wife or between father and son? If you also have these questions in your mind, then let us know their answers… If you also transact money between father and son or between husband and wife, then this news is useful for you. Actually, every transaction of ours has an eye on income. In such a situation, a question arises in the minds of many people whether income tax notice can be received even on cash transactions? Let us know how much cash transaction you can do in your family. Income tax sends notice? According to tax experts, if you give money every month for household expenses or give money as a gift, then the wife is not liable for income tax. Both these types of amounts will be considered as the income of the husband. The wife will not receive any notice from the I...
Read more

Have a Current/Savings Bank Account? Know the Cash Deposit Limits under Income Tax Act to avoid Penalties and Notices

Image
  Adhering to cash deposit and withdrawal limits is crucial to remain compliant with the Income Tax Act in India. This article aims to elucidate the various facets of cash-related regulations, encompassing savings and current accounts, fixed deposits, credit card bill payments, real estate transactions, and more.  Cash Deposit Limits in Savings and Current Accounts The Indian Income Tax Act imposes specific regulations on significant cash deposits in savings accounts. Individuals accumulating INR 10 lakh or more during a fiscal year must notify tax authorities.  For current accounts, this threshold is set higher at INR 50 lakh. Although not immediately taxed, financial institutions report transactions exceeding these limits.  Cash Withdrawal and TDS under Section 194N  Section 194N outlines TDS rules for cash withdrawals. A 2% TDS is levied on withdrawals exceeding INR 1 crore within a fiscal year. Non-filers face a 2% TDS on withdrawals over INR 20 lakh and a 5...
Read more