Business Daily from THE HINDU group of publications
Saturday, Apr 21, 2007
ePaper
Business Daily from THE HINDU group of publications Saturday, Apr 21, 2007 ePaper |
|
|
|
|
|
|
|
Markets
-
Stocks Corporate - Outlook
Jayanta Mallick
Kolkata April 20 IS a data void on Corus impacting the valuation of Tata Steel stock? Corus Group Plc has not yet announced results for the quarter to December 31, 2006 and the annual results for the 2006. According to market circles, one may not know the Corus numbers until Tata Steel announces its annual results in June. "Lack of data regarding Corus has hamstrung fundamental analysis on Tata Steel, particularly putting a valuation to the unfolding synergy," said an analyst with a foreign brokerage active in here. Tata Steel had earlier estimated a consolidated EPS of Rs 38.29 for the first half of FY 2006-07 against its standalone EPS projection of Rs 36.41. "But it is a dynamic world of steel where numbers and estimates are changing fast. A data void like this may only make the valuation difficult," he added. Corus, then an Anglo-Dutch steelmaker coveted by Tata Steel, had reported on November 29, 2006 a nearly threefold jump in net profit in third quarter to September 30, 2006. The boost in the profit came from higher steel prices. During that quarter, Corus had increased prices by 12 per cent. The management had, however, cautioned that profitability in the fourth quarter would "reflect seasonal production shutdown and the blast furnace reline at Ijmuiden", the Dutch plant, the most efficient of the Corus stable. During December Corus did not announce any further product price hike. But, in February and March this year, it showed remarkable improvement in pricing power. It announced hikes in as many as seven major items (across the full product range - from HR to organic coated steels) for UK and European markets on what it termed as "healthy demand" for Q2 (April - June 2007) deliveries. The hike in wire rod varied between 8 per cent and 10 per cent, while HR and long product prices were jacked up 5 per cent. After acquisition of Corus by Tata Steel, which became effective on April 2, 2007, financial information regarding the UK outfit will have to be prepared in accordance with accounting standards applicable in the UK and also India. Corus, which was de-listed from the Euronext in Amsterdam and London Stock Exchange early this month, has gone out of the radars of the securities analysts in Europe. Now, global equity brokerages are preparing to monitor Corus through tracking Tata Stock in India.
More Stories on : Stocks | Outlook | Tata Steel Ltd
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2007, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|