Is there an investment opportunity in PSP Projects shares?
Is this the right time to invest in the shares of PSP Projects, a company that does construction work for the government and corporate India? How much benefit will there be from investing in this stock? What targets are experts giving regarding this stock? Watch this video to know-
Shares of Tata Steel surged by 3.11% to Rs 1,340 per share a day after the company reported an increase of 661% in its consolidated net profit to Rs 11,918 crore for the second quarter ending September 30, 2021. The steel major had posted a profit of Rs 1,565 crore in the corresponding quarter last year.
Tata Steel revenue from operations rose 55% to Rs 60,282 crore for the period under review compared to Rs 38,939 crore in the year-ago period.
On the operating front, the company had yet another stellar quarter as it posted its highest-ever quarterly consolidated operating profit of Rs. 17,810 crore, up 222% on-year. This came on the back of operating profit per tonne skyrocketed 246% year-on-year to Rs. 24,112 led by price hikes. Even its operating margin in the quarter expanded a whopping 1,535 basis points on-year to 29.54%. However, they declined 23 basis points on a sequential basis reflecting the muted price hikes taken in the quarter as compared to the previous quarter.
With such strong quarterly numbers brokerages are bullish on the counter. Here is what they have to say about Tata Steel.
CLSA | Rating: Buy | Price target: Rs 1,950
Tata Steel’s weak domestic performance was compensated by strong performance in Europe. Q2 EBITDA (Earnings Before Interest Tax Depreciation & Amortisation) missed estimates on lower standalone profitability. Net debt of the company fell by Rs 5,100 crore on sequentially with free cash flow impacted by Rs 3,900 crore. Management is hopeful that the steel prices in Asia are likely to be rangebound.
JP Morgan | Rating: Overweight | Price target: Rs 1,810
Tata Steel’s Q2 consolidated EBITDA was broadly in-line with expectations. The quarter saw a large decline in net debt. Despite European operations witnessing lower volumes, higher energy costs EBITDA jumped 2x sequentially a big positive.
(Disclaimer: Stocks recommendations by experts or brokerages are their own and not those of the website or its management. Money9.com advises market participants to check with certified experts before taking any buy, sell or hold decisions.)