Sell Tata Steel, target Rs 235: CLSA
The reported consolidated loss for the 5th quarter in a row but margins improved QoQ in India and Europe, said the CLSA note.
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| Updated: CLSA maintains sell rating on Tata Steel post March quarter results but raised its 12-month target price to Rs 235 from Rs 220 earlier.
The reported consolidated loss for the 5th quarter in a row but margins improved QoQ in India and Europe, said the CLSA note.
The global investment bank is of the view that FY17 should be a better year led by higher volumes/ASPs in India. The potential sale of the Port Talbot UK plant is a key near-term trigger, added the note.
Post strong YTD rally Tata Steel stock is pricing in continuation of MIP through FY18 but that looks unlikely. CLSA sees risk-reward as unfavourable at current levels for Tata Steel.
The reported consolidated loss for the 5th quarter in a row but margins improved QoQ in India and Europe, said the CLSA note.
The global investment bank is of the view that FY17 should be a better year led by higher volumes/ASPs in India. The potential sale of the Port Talbot UK plant is a key near-term trigger, added the note.
Post strong YTD rally Tata Steel stock is pricing in continuation of MIP through FY18 but that looks unlikely. CLSA sees risk-reward as unfavourable at current levels for Tata Steel.
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