Centrum Research's research report on Tata Metaliks
Tata Metaliks (TML) delivered steady performance in Q1 despite few unscheduled shutdowns and EBITDA stood at ~Rs660mn, up 33% YoY but lower than our expectations by ~8% with the miss being completely driven by shutdown impact (~Rs70mn). We continue to maintain our positive view on TML as its DI pipe business boasts of an industry leading cost structure, solid demand drivers and strong entry barriers. With expected recovery in spreads in FY19E and commissioning of PCI project by Q4FY19E coupled with several other productivity improvement initiatives,
Outlook
TML is expected to continue delivering steady earnings growth over FY19-20E. We see valuations attractive with reasonable scope for a re-rating and maintain Buy with a TP of Rs1050.
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Read More First Published on Aug 3, 2018 03:45 pm
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