Tata Steel - Chance To Pare Down Debt For Good: ICICI Securities
Emissions rise from a chimney at a Tata Steel Ltd. plant in Jamshedpur. (Photographer: Anindito Mukherjee/Bloomberg)

Tata Steel - Chance To Pare Down Debt For Good: 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

Tata Steel Ltd.’s management led with a commentary on structural shift in commodity markets and higher through cycle steel prices.

What’s impressive though is that capex programme hasn’t drawn confidence from the same and has been restricted to Rs 130-155 billion per annum for the next five years.

Management has also suggested the new net debt to Ebitda target of two times through cycle – FY22E being much lower.

Management clarified that two times is upper bound and will be tested only if anything meaningfully attractive (mostly inorganic) comes to notice.

Click on the attachment to read the full report:

ICICI Securities Tata Steel Company Update.pdf

DISCLAIMER

This 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.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.