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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.

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