Live news , top stories, corporate news, company news, sector news, economy news, results analysis news, ceo interviews, fund manager interview, advisor interview, market news, bazaar talk, hot stocks news, ipo news, commodities news, mutual fund news, insurance news, news wire
30 September, 2014 19:20 IST
News

Source: (30-Sep-14)
Comments  |  Post Comment

Q2FY13 saw Chinese steel prices and LME aluminium/zinc prices at 3 year lows and bounce up from there. Global average aluminium margins are at 25 year lows.

''We believe we have seen the worst and prices/margins should improve from these levels into FY14. In steel, we largely maintain our FY14 Indian steel price assumption but cut in hard coking coal prices by approx. 12% boosts EBITDA/t in FY14 over current levels. Our estimates incorporate this improvement and we revise upwards wherever applicable,'' said Edelweiss Research.

It believes the market is assigning 50% to 100% discount to CWIP considering sector slowdown and project issues. While project issues may continue, sector tailwinds will still improve IRRs and reduce the discount. It notes that SAIL, Sterlite and Hindalco have the highest CWIP to EV ratio at 54%, 38% and 49% respectively and will benefit the most from this.  

''We continue to expect a weak developed world but with its share of metals demand down to around 30% and declining further we see negative  impact mitigated. Regulatory action in mining is the other risk," it said.

Edelweiss's top picks are Tata Steel, Hindalco and Sterlite - all of whom will see increase in volumes and margins in FY14. While its TP for Tata Steel is unchanged at Rs 516, TP for Hindalco and Sterlite are revised upwards to Rs 171 and Rs 139  respectively, it said.

''We upgrade both SAIL and Sesa to BUY from HOLD with TP of Rs107 and Rs 231 respectively. We retain BUY on JSW Steel (TP of INR976, up from INR868), JSPL (TP: INR508), HZL (TP: INR155) and Coal India (TP: INR410); retain HOLD on Usha Martin (TP: INR35). Retain REDUCE on Bhushan Steel with TP of INR417 and NALCO with TP of INR44,'' it added.

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.


Sector News
SBI makes 63 out of 67 branches fully functional in Kashmir Valley - 30-Sep-2014 18:27
Festive season to be good for auto sales: ZyFin - 30-Sep-2014 17:47
ABB bags order worth Rs 550 mn - 30-Sep-2014 17:28
Maruti Suzuki to recall 69,555 vehicles - 30-Sep-2014 16:42
Aegis inks pact with Punjab National Bank - 30-Sep-2014 15:42
Apollo Hospitals announces collaboration with Sanofi - 30-Sep-2014 14:41
Apollo Hospitals announces collaboration with Sanofi - 30-Sep-2014 14:41
Overweight kids in Delhi-NCR more prone to cardiovascular diseases: Assocham - 30-Sep-2014 14:05
NTPC signs term loan of USD 250 mn with Mizuho Bank - 30-Sep-2014 13:54
Angel Broking maintains 'Buy' on Wipro - 30-Sep-2014 12:51
HDIL rallies after promoters revoke all pledged shares - 30-Sep-2014 12:50
more...
* Q - Quote , N - News , C - Chart , F - Financials
Comments Post comment 
 Post Comment
Name Email
Comment
Security Code type   ss55xc into this box
Home  |   Shares  |   F&O  |   Mutual Funds  |   Loans  |   Insurance  |   News Centre
Wealth Tracker  |   Newsletters  |   Tax Corner  |   NRI Centre  |   Forums  |   E-mail  |   Advertise
© All rights reserved. IRIS Business Services Limited
A Disclaimer