TIME TO CAPTURE
TATA STEEL
Tata Steel
stock rated ‘Buy’ by HSBC, pegs target price at Rs 750
We estimate further upside of Rs117-167 to
our target price assuming EUR400-600m of annual synergies are realised. We
reiterate our ‘buy’ rating on Tata with a higher TP of Rs750 vs Rs540 on our
higher earnings and as we move our valuation base to FY19e from FY18e, valuing
Tata steel at 6.5x EV/EBITDA.