EUR 120.00 For Business Accounts Only

MOSL: Morning India (16/August/21): 1. Tata Steel (Profitability in Europe to improve); 2. Fund Folio; 3. ONGC; 4. Grasim Inds; 5. BPCL; 6. Hero MotoCorp; 7. Aurobindo Pharma; 8. Ashok Leyland

Morning India (16/August/21): Morning India (16/August/21): 
Today’s top research ideaTata Steel: Profitability in Europe to improve- TATA has been a key beneficiary of rising steel prices. While margin in India has been strong in the last few quarters, Europe should see a sharp jump, with EBITDA/t expected to cross USD250/t by 3QFY22. The deleveraging cycle should continue, with consolidated net debt expected to fall by 32% YoY to INR565b (0.8x EBITDA) in FY22.- Consolidated EBITDA rose 14% QoQ to INR161.1b (highest ever) in 1QFY22. PAT at INR90.9b was higher than FY21 levels (INR82.7b).- We arrive at our TP of INR1,565/share, based on FY23E EV/EBITDA of 5x/4x for its India/Europe operations. Our TP implies an EV/capacity of USD1,064/t, a premium of ~50% to its past five year average of ~USD700/t, which prices in deleveraging from the up cycle. We, therefore, rate it Neutral.

Piping hot newsExports up 49.85% in July to $35.43 billion; trade deficit at $10.97 billion The country's exports surged 49.85 per cent to $35.43 billion in July on account of healthy growth in petroleum, engineering, and gems and jewellery segments, even as the trade deficit widened to $10.97 billion during the month, official data showed on Friday. Imports during the month also rose by about 63 per cent to $46.40 billion, as per the data released by the commerce ministry.