METALS
CLSA ON METAL & MINING : 20.01.2022
* Valuations adequately factoring in risks
• Believe CY22 is likely to be a year of uncertainties
• Believe base metals are better placed than ferrous
* Hindalco, Tata Steel & JSPL are our preferred picks
* Target for Hindalco at Rs 620/share, Tata Steel at Rs 1,820/share
* Target for JSPL at Rs 590/share
* Metals are with attractive risk-reward
JPMORGAN ON METALS 14.01.2022
* Maintain BUY on Tata Steel, Target at Rs 1850/share
• Maintain BUY on SAIL, Target at Rs 165/share
• Indian steel stocks have underperformed global steel stocks
* Underperformed by an average of 11% to 15% over the last one to six months
• EBITDA/T for the
JPMORGAN ON METALS : 14.01.2022
* Risk-reward attractive in Indian metals/steel stocks; JPMorgan remains overweight on Tata Steel, SAIL, Hindalco & NMDC
* Risk-reward Attractive In Indian Metals/Steel Stocks
* Remain Overweight On Tata Steel, SAIL, Hindalco & NMDC
* Continue To See Consensus Earnings Upgrade Risk For The Sector
* Regional HRC Steel Prices Did Not Go Below $800/t Even In The Low Point Of CY21
* With Demand Set To Improve Further, Steel Prices Should Move Higher
JEFFERIES ON METALS : 11.01.2022
* Jefferies lowers optimism on India metals as we enter 2022, downgrades Tata Steel & JSW Steel.
* DOWNGRADE TATASTEEL HOLD TGT: 1,240 (CMP. 168)
* DOWNGRADE JSW STEEL
* UNDERPERFORM TARGET:600 (CMP.672.50)
* Lower Optimism On India Metals As We Enter 2022
RETAIN HINDALCO BUY TGT: 660 (CMP, 49220)
* Like Novelis' Downstream Biz, Retain Buy On Hindalco, Target At 3660/Sh Cut FY23 EPS Estimates For Tata Steel, JSW By 18% / 26%
* Weak Macro & Demand Concerns in China Are Weighing On Metal Prices
JEFFERIES DOWNGRADES METALS : 11.01.2022
* Downgrade Tata Steel from Buy to Hold
* Tata Steel target at Rs 1240/share
• Downgrade JSW Steel from Buy to Underperform, Target at Rs 600/share
• Lower optimism on India metals as we enter 2022
* Weak macro and demand concerns in China are weighing on metal prices
• Although easing policy could lift Chinese demand, still find risk-reward much inferior to a year ago
• Cut FY23 EPS for TATA/JSTL by 18% / 26%
• Prefer aluminum, Hindalco is top pick
JPMORGAN ON METALS : 05.01.2022
* Stocks have diverged from commodity prices
* Top Overweights are Tata Steel, SAIL, Hindalco
• China demand was very weak in the December quarter
• Indian demand was weak, too
• Post-CNY China demand trend is crucial, especially for steel
• Demand important given recent domestic steel price cut
*. Earnings are plateauing at sharply higher levels
*. Q3 demand was weak, impacting realizations; earnings should be flattish RISE
CLSA ON METALS : 08.07.2021
* For Steel, record margins likely in Q1 but spreads to soften in H2
• Ferrous margins likely peaked, but consensus upgrades still possible
* Hindalco: Strong metal prices, but auto sheet outlook in focus
• Vedanta: Strong aluminium prices to drive earnings
• Coal India: Realisation trajectory key
