Wednesday, July 26, 2017

TIME TO CAPTURE TATA STEEL

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.