Metals Sector Update - Look Downstream, Converter; Avoid Ferrous: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Our outlook for metal stocks under coverage remains cautious to negative for CY22 – we continue to prefer downstream focused / converter models. Hindalco Industries Ltd. resonates because of its downstream focus and lack of upstream/smelting ambitions and so do APL Apollo Tubes Ltd and Jindal Stainless Ltd. (converter and serving in a niche downstream segment growing at a much faster pace than its steel counterparts). The current margins, valuations clearly tell a story of caution. Deleveraging as a theme is important but overhyped given cyclicality. Globally, higher return on equity is not leading to any rerating and we don’t expect Indian steel equities to be an exception. Anti-dumping duties on steel imports have not been renewed at a time when Chinese steel production and exports are expected to increase in Q1 CY22..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Metals Sector Update - Look Downstream, Converter; Avoid Ferrous: ICICI Securities

Metals Sector Update - Look Downstream, Converter; Avoid Ferrous: ICICI Securities

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