Motilal Oswal: Steel Spreads At A Multi-Year High
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Motilal Oswal Report
Indian steel spreads have risen approximately 25% in Q3 FY21 and are at a three-year high.
We expect spreads to stay strong on the back of a domestic demand recovery and higher regional prices.
The improvement in Ebitda/tonne should be even higher on an improving sales mix (lower exports and higher value-added sales).
We raise our coverage Ebitda estimates by 3-12%/5-13% for FY21E/FY22E to factor in higher spreads.
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