Tata Steel after many quarter came out with better result
and profitability. Tata Steel India business is showing positive trend and it
is expected that it will continue to grow given the infrastructure revamp push
by the government. The additional capacity addition from Tata Steel offered
Tata Steel an opportunity to improve their margin. On their UK business, their
negotiation with UK labour union on pension came out favorable for Tata Steel
as voting result will reduce Tata Steel liability in return of securing
thousand of UK job.
It will help to reap in the benefits in due course of time.
The one billion pounds investment will also improve the capacity to efficiency
which will translate into cost optimization on the production front. As steel
price is showing the upwards trend in International market which will help Tata
Steel to improve EBITA front International division. It is expected that Tata
Steel share will rise to 560 to 590 level from 469 level as of today. It is
advisable to value investor to invest in Tata Steel with near to long term
perspective and stay away from F&O market.
Disclaimer: Consult your financial advisor before investing
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