For 4Q FY 2012, Tata Sponge Iron (TSIL) reported a 6% yoy decline in its revenue
to Rs. 184 cr, 15.5% higher than our estimate of Rs. 159 cr.
The company’s EBITDA margin came in at 13.9%, lower by 4.93% q o q, from 18.8% in 3Q FY 2012 due to increased raw-material costs as a percentage of net sales possibly because of
higher iron ore prices.
Profit for the quarter stood at Rs. 15 cr as compared to Rs. 17 cr
in 3Q FY 2012. We expect ramp-up in capacity utilization and better sponge iron
volume sales going forward.
We await clarity from the management on the status of its coal block, which could be a key trigger for the stock. Maintain Buy recommendation on the stock with a target price of Rs. 420, based on a target P/B
of 0.9x for FY2014E.
Review by Angel Broking
to Rs. 184 cr, 15.5% higher than our estimate of Rs. 159 cr.
The company’s EBITDA margin came in at 13.9%, lower by 4.93% q o q, from 18.8% in 3Q FY 2012 due to increased raw-material costs as a percentage of net sales possibly because of
higher iron ore prices.
Profit for the quarter stood at Rs. 15 cr as compared to Rs. 17 cr
in 3Q FY 2012. We expect ramp-up in capacity utilization and better sponge iron
volume sales going forward.
We await clarity from the management on the status of its coal block, which could be a key trigger for the stock. Maintain Buy recommendation on the stock with a target price of Rs. 420, based on a target P/B
of 0.9x for FY2014E.
Review by Angel Broking
No comments:
Post a Comment