Tata Steel -Better performance overrules concerns BUY ::Emkay

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Tata Steel

Better performance overrules concerns

BUY

CMP: Rs476                                        Target Price: Rs670

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n     Consolidated topline higher than estimates at Rs 330 bn, up by 21% YoY and down 2% QoQ aided mainly by strong realizations in Europe and also in India

n     Higher power and fuel costs pressurized EBITDA to remain flat both YoY and QoQ at Rs 44.2 bn. EBITDA/ tonne in Europe rose to US$78, while in India it improved to Rs 19395       

n     Standalone APAT stood at Rs 17.1 bn, while consolidated APAT came at Rs 14.27 bn. The company accounted Rs 39.2 bn in other income (conso) as sales of various investments

n     Revised FY12 and FY13 EPS to Rs 55 and Rs 79 respectively; Maintaining target price at Rs 670/ share. Upgrade the stock to Buy