Why I think tata steel will be winner in coming months ?

rahul das's picture

2009.07.30-TataSteel.png

1. Company has cash and cash equivalent at Rs 8000 Cr. ( better balance sheet compared to competitors )

2. Higher capacity 1.54 mt.

3. Hooghly Met Coke, will merge with tata steel.

4. Coal cost has been drag on net profit, with merger of subsidiary total cash flow will increase.

2009.07.30-TataSteel-BS.png


About rahul das

Author is Investment strategist at top 5 broking firm based in Mumbai.

 #

That's a great analysis Rahul. You said everything in pictures. Technically Tata Steel is setting up for next bull run.It is also a good infrastructure play.If govt keeps spending on infra Tata will keep benefitting from it. They need to keep their cost under control.

Raw material wise their biggest one is coal and there was a 50% jump in raw material cost. That affected bottom line. But with Hoogly met coke in their fold cost will go down or cashflow will increase since they will be paying to themselves.

Next stock idea is any coal company out there ?

 

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