Kotak cuts India's Tata Steel to 'reduce' from 'buy'

TISC Co

03/01/2024 06:52

** Kotak Institutional Equities cuts India's Tata Steel to
"reduce" from "buy", saying co's fundamentals have
deteriorated; fair value at 145 rupees
    ** TISC shares down 1.8% to 137.20 rupees
    ** TISC has rallied over 16% in last two months and
brokerage sees limited upside after the recent surge
    **  Kotak sees downward pressure on India’s steel spreads
from Q4FY24 for TISC, persistent pressure in Europe’s steel
spreads and risk of delay in UK’s resolution and completion of
the 5 mtpa expansion
    ** Kotak says there is high inventory at mills and
distribution channels and rising imports are exerting pressure
on steel prices and coking coal prices have remained elevated 
    ** TISC shares rose 24% in 2023 vs 18.7% gains in metal
stocks  .NIFTYMET  

 (Reporting by Sethuraman NR in Bengaluru)
 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))