Hold Tata Steel, target price Rs 340: Emkay Global
Emkay Global has given a hold rating to Tata Steel with a 12-month target price of Rs 340. The share price moved down by -0.92 per cent from its previous close of Rs 326.70. The stock’s last traded price is Rs 323.70.
Tata Steel’s Indian business has delivered a strong operating performance, with EBITDA of Rs 12,187/t. However, the brokerage notes that the bigger surprise was Europe delivering positive EBITDA of $4/t. Emkay Global expects the Tata Steel Europe (TSE) business to report a loss in the first half, due to compressing steel spreads. Leverage remains high and absolute net debt is also above the Rs 1 trillion mark. The brokerage expects no deleveraging in FY21 and FY22 as the support to Europe and ca ..
