Stocks meant for long term say more than a year
Tata Steel: Buys.630/- target Rs.700/-
Tata steel ( indian Division)- PE is only 8. Good stock to keep.It is the cheapest stock in NIFTY group.
S&P raises ratings on Tata Steel and UK arm news
07 October 2010
Standard & Poor's today said that it had revised its outlooks on India-based Tata Steel Ltd and the former Corus plc, now its UK subsidiary Tata Steel UK Ltd to stable from negative.
We revised the outlook as we believe the potential pressure on Tata Steel UK's liquidity has eased following the refinancing of a £3.67 billion bank loan. The refinancing also reduces the potential pressure on parent Tata Steel's liquidity," said Standard & Poor's credit analyst Mehul Sukkawala
Tata Steel's consolidated operating performance has improved over the past year, especially with a turnaround at Tata Steel UK. Tata Steel's consolidated EBITDA margin was about 17 per cent for the six months ended 30 June 2010, compared with negligible margins for the same period last year.
"Tata Steel's and Tata Steel UK's financial metrics have improved. We expect metrics to further improve in the fiscal year ending 31 March 2011. We, however, believe that Tata Steel's financial risk profile remains aggressive, and Tata Steel UK's highly leveraged," S&P said in a statement.
Tata Steel and Tata Steel UKhave adequate liquidity, it added. "The companies' liquidity positions have improved with the refinancing of debt at Tata Steel UK by a new bank loan and a revolver credit facility totaling £3.53 billion. The new bank loan lengthens the repayment schedule and will enable Tata Steel UK to significantly reduce its repayment obligations for the next four to five years. In addition, it carries lighter financial covenants, which Tata Steel UKcan easily meet, and shields the company from any potential downturn in the operating environment."
Business standard says:
Steel firms get back pricing power
Healthy demand, better realisations and benign input prices indicate good prospects.
The outlook for domestic steel manufacturers is improving on the back of strong demand in the country and companies hiking steel prices. Companies including JSW Steel, SAIL and Essar Steel have hiked steel prices in the range of Rs 1,000-1,500 per tonne (or 3-4 per cent) in the last one week, which analysts believe could rise further. In totality, domestic HRC (hot rolled coil) prices are up 13 per cent since July this year, at about Rs 38,700-39,200 ($880-890) per tonne. In the light of the healthy demand, better realisations and benign input prices, the prospects of steel manufacturers look good.
Tata steel: PE ratio is only 8.5(EPS 72 and price 640) for current year and for next year it is
8.
For SAIL , it is 12 and for next year 11.
For JSW steel, it is 13 and next year 11.
So steel stocks are good picks now as other index stocks PEs are more than 15 to 20.
Reliance: Buy 1040 Target Rs.1100
OIL on Boil.
oil continues to rise. Now $83.May head towards $100 soon due to global recovery of all sectors.
RIL's K-G gas play may get bigger with D4 block
At 100 tcf, partner Niko says reserves may be twice D6 block’s
The Krishna-Godavari (K-G) basin may prove to be a much bigger play for Reliance Industries Ltd (RIL). This follows the announcement that its D4 block could hold twice the reserves of the in-production D6 block to the north.
So reliance industries have got good future and with such low share price it is a pick for any long term investor.
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