Q3 Results Preview: How will Metal sector perform in December quarter? Check expectations, target price
Q3 Result Preview: Metal companies like Tata Steel, JSW Steel and others have advised investors regarding which metal stocks to buy, sell or hold.
Q3 Result Preview: With the December quarter results to be announced soon, brokerages have shared their views on metal companies. Brokerages have shared their expectations regarding the Q3 results of various metal companies like Tata Steel, JSW Steel and others have advised investors regarding which metal stocks to buy, sell or hold.
Tata Steel
Tata Steel: Q3 Result Expectations
ICICI Securities expects the standalone EBITDA (Earnings before interest, taxes, depreciation, and amortization) to improve sequentially led by lower coking coal cost. According to the report, Tata Steel Europe is likely to swing towards loss at EBITDA level owing to sharp dip in realisation and Tata Steel Long Product's performance may remain subdued. Brokerage expects consolidated EBITDA to drop further Quarter on Quarter (QoQ).
Tata Steel: Target price
CLSA has tagged Tata Steel as 'Outperform' and has raised the target to Rs 135 from Rs 90 apiece.
JSW Steel
JSW Steel: Q3 Result Expectations
ICICI Securities expects JSW Steel’s standalone EBITDA to improve sequentially led by lower coking coal cost, though iron ore cost remained broadly unchanged. The report states that Bhushan Power & Steel Limited performance may remain subdued on higher cost and iron ore/rake availability constraints in Odisha. According to report, overseas subsidiaries are unlikely to show improvement owing to higher cost and decline in realisation, particularly in the US.
JSW Steel: Target Price
CLSA has maintained ‘Sell’ call and raised JSW Steel target price to Rs 640 from Rs 480 per share.
SAIL
Steel Authority of India (SAIL): Q3 Result Expectation
ICICI Securities expects sequential improvement in EBITDA led by stable shipment and benefit of lower coking coal prices. It also expects blended realisation to be lower by Rs3,000/te QoQ and relatively better prices of long products in the quarter are likely to aid earnings.
Steel Authority of India target: SAIL Target Price
IDBI Capital has given a ‘Sell’ call with a target price of Rs 75 apiece.
Jindal Steel Power
Jindal Steel Power (JSPL): Q3 Result Expectation
ICICI Securities expects lower sales volume QoQ owing to subdued demand until November 2022. According to the report, realisation is likely to be down by Rs2,000/t QoQ and overseas subsidiaries are unlikely to show higher volume.
Jindal Steel Power Target Price: JSPL Brokerage target
CLSA has upgraded its rating to 'Reduce' from 'Sell' and raised the target to Rs 610 from Rs 430.
Jindal Stainless
Jindal Stainless: Q3 Result Expectation
ICICI Securities expects further improvement in shipments as the company has expanded its sales in the domestic market. According to the report, imports are yet to pick up and expect EBITDA/t back at Rs18,000/te owing to better realisation and stable cost QoQ.
Jindal Stainless target price
ICICI Securities has recommended 'Buy' on Jindal Steel shares with a target price of Rs 270 per share.