SELL #JSWSTEELS BELOW 685 TRG 670-655 SL PAID | Neal Bhai Reports
For Q1 FY22E, we expect domestic steel companies to report a healthy quarter (in terms of Earnings before interest, taxes, depreciation, and amortization/tonne), driven by higher steel prices.
For the quarter, on a QoQ basis we expect blended realisation of steel companies to be higher in the range of Rs 6,000-7,000/tonne (for our coverage universe), wherein the price increase is higher for flats than longs. Subsequently, on a QoQ basis for our coverage universe, we expect Ebitda/tonne of steel companies to increase in the range of ~Rs 4,000-5,000/tonne.
