Prabhudas Lilladher
Tata Steel (Accumulate)
CMP: Rs 402
Tata Steel reported fourth quarter for FY12 earnings in line with expectations on operational level. However, earnings fell short of expectations with respect to PAT owing to lower-than-expected Other Income and higher tax rate. Management reiterated its guidance of one million tonnes additional volumes in FY13. Reconstruction of 2.5-mtpa BF-4 at Port Talbot is to commence in July and expected to be commissioned in November.
Tata Motors DVR (Buy)
CMP: Rs 145
Target: Rs 177
The average discount for the DVR to Tata Motors' ordinary share was 36.7 per cent since inception. The DVR has corrected 18.9 per cent in the last one month compared to a 16 per cent correction in the Tata Motors' stock.