*Brokerage Radar* *MS on Tata Steel* *OW, TP Rs 1000* Key hig | CENTRE FOR RETAIL INVESTORS

*Brokerage Radar*

*MS on Tata Steel*
*OW, TP Rs 1000*
Key highlights:
a)in-line consol EBITDA despite better performance in India due to miss in Europe
b)robust cash flow & net debt reduction
c) restart of KPO2 capex
d) Dividend of Rs 25/sh, payout one of highest in last few yrs

*Macquarie on Tata Steel*
*O-P. TP Rs 1045*
Solid quarter; Constructive outlook
Solid deleveraging; announces growth capex
Key to track: earnings outlook particularly for EU given contract renegotiation, domestic demand outlook & expansion capex & timelines.

*CLSA on Tata Steel*
*Buy, TP Rs 1150*
4Q consol Ebitda 11% above est, debt reduction remains strong
Most biz performed better than est
Best-ever standalone profitability & 1Q likely to be even stronger
Europe largely in line; clarity awaited on several issues

*JPM on Tata Steel*
*OW,TP Rs 1250*
Large beat in 4Q, consol EBITDA at Rs141.8bn vs consensus of Rs128bn & underlying PAT at Rs80bn (reported PAT Rs71bn) vs consensus of Rs74bn
Given large price hikes seen in April & May, 1HFY22
should be very strong

*Jefferies on Tata Steel*
4Q adjusted EBITDA rose 68% QoQ (78% above 4QFY19) & 18% above JEFe
Rising steel prices drove sequentially higher EBITDA/t across biz
TATA generated free cash flow of Rs88bn in 4Q
Net Debt sell by Rs 90/sh

*Investec on Tata Steel*
Best is ahead… Preferred ferrous proxy
Operational beat across regions, strong CF generation (FCF Rs88/238b Q4/FY21) aids B/S deleveraging (debt reduction by Rs293b over FY21 to Rs753b)
Net gearing <1x
Dividends Rs25/sh