CLSA: Metals Changes in export duty on iron ore will be negative for Sesa Goa but positive for JSPL, JSW Steel and Bhushan

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


Metals
Changes in export duty on iron ore will be negative for Sesa Goa but positive for JSPL, JSW Steel and Bhushan


Export duty on iron ore fines/lumps raised to 20%
Earlier duty was 5% on fines and 15% on lumps
Negative for Sesa as it sells 90% of iron ore as fines
Positive for JSW Steel and Bhushan, which buy iron
ore in domestic market
Reduction in export duty on pellets to 0%
Slightly positive for JSPL as it can now export surplus
pellets at higher net ASPs
15% tax rate on dividend from foreign subsidiary
Dividend from foreign subsidiary to an Indian parent
will be taxed at 15% for FY12 vs. the standard 33%
Hindalco could benefit on future dividend flows from
Novelis.
Our top picks – Tata Steel, JSPL and Hindalco