These metal stocks are ICICI Securities' top picks in the sector
1 min read . Updated: 12 Oct 2021, 10:26 AM IST
Premium- The domestic brokerage firm's top stock picks include Tata Steel, Hindalco, and Graphite India Limited
Domestic brokerage and research firm ICICI Securities' top stock recommendations in the metals sector includes Tata Steel, Hindalco and Graphite India, it said while sharing a note on the result preview for metals & mining sector.
The brokerage has a Buy on Hindalco with target price of ₹525 per share. Its Buy rating on Graphite India comes with a ₹825 target price whereas its Buy rating on Tata Steel comes with a target price of ₹1,750 apiece.
In its metals and mining coverage, ICICI Securities also has a Buy on JSW Steel (TP ₹850), NMDC (TP ₹210), Ratnamani (TP ₹2400), Tata Metaliks (TP ₹1,475) whereas it has a Hold stance on Coal India (TP ₹160).
For the second quarter, ICICI Securities expects Tata Steel's topline to increase 62% on a yearly basis and 13% QoQ to ₹60,254 crore on a consolidated basis. The consolidated EBITDA for Q2FY22 is expected to increase 25% QoQ and 231% YoY to ₹20,212 crore. Consolidated EBITDA margins are likely to come in at 33.5% (compared to 30.2% in Q1FY22), the brokerage note stated.
Meanwhile, for Q2FY22E, it expects Hindalco's domestic operations (standalone operations + Utkal) topline to come up 65% YoY, 18% QoQ. Also, EBITDA margin is likely to come it at 18.4% (13.3% in Q2FY21, 19.6% in Q1FY22). Novelis is likely to report sales volume of 974 KT and EBITDA/tonne of US$550/tonne, it stated.
Graphite India is expected to report a consolidated topline growth of 47% YoY, 17% QoQ). ICICI Securities expects the company to report consolidated EBITDA of ₹231 crore (up 64% QoQ) and a consolidated net profit of ₹224 crore (up 49% QoQ)
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
