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Informist, Friday, Feb. 14, 2024

MUMBAI – Shares of metal manufacturing companies are seen in a range next week, but they may rise if the much-anticipated safeguard duty on cheap steel imports from China becomes a reality. Analysts said the Indian steel industry has urged the government to implement safeguard measures to protect local manufacturers.

Analysts are positive on the metal sector in the near term as they expect demand to improve in the March quarter. One analyst said infrastructure related activities are at their peak in the ongoing quarter and companies have met their production targets.

Earlier this week, many companies in the metal space disclosed their financial results for the December quarter. Steel Authority of India Tuesday reported a net profit of INR 1.26 billion, down 62% on year. The company's top line rose nearly 5% on year to INR 244.90 billion. Absence of any meaningful recovery in steel prices, weak operational parameters, and elevated debt levels despite no major capital expenditure in the pipeline are key challenges for the company, Elara Capital said in a post-earnings research report on Wednesday.

The brokerage firm has trimmed its earnings before interest, tax, depreciation, and amortisation estimates by 4% for 2024-25 (Apr-Mar) and 9% each for FY26 and FY27. Elara Capital has retained its 'reduce' rating on SAIL and lowered its target price to INR 104 from INR 115 earlier.

Ratnamani Metals and Tubes Wednesday posted a net profit of INR 1.46 billion for the December quarter, up 8.2% from a year ago. Revenue from operations rose 7.9% on year to INR 12.94 billion. Elara Capital expects robust export opportunities for the company and improved performance of its subsidiary Finow to drive growth and has therefore retained its positive stance on the company. Elara Capital Thursday upgraded the stock to 'buy' from 'accumulate', but lowered the target price to INR 3,361 from INR 3,856.

The Nifty Metal index fell 4.6% this week, against a rise of 3.5% last week. Shares of Tata Steel fell 2.8% and JSW Steel fell 1.7% this week. Shares of Hindustan Copper fell 12.1% this week.

TOP HEADLINES
* Ratnamani Metals Oct-Dec net profit rises 8% on year to INR 1.46 billion
* Godawari Power Oct-Dec consol PAT falls 36.8% YoY, sales down 0.9%
* Analyst Concall: FY25 sales target 17.5 mln tn, sold 1.57 mln tn Jan - SAIL
* PRESS: Jindal, Mahindra groups propose to invest INR 1.4 tln in Karnataka
* Earnings Review: SAIL's net profit falls for 5th qtr, down 62% YoY Oct-Dec
* Analyst Concall: Novelis says 'Midwest premium' will offset proposed tariff
* Hindalco arm Novelis posts weak net income for Oct-Dec, revenue up on year
* SC junks Vedanta's plea for preferred bidder award for Goa iron ore mine
* JSW Steel's Jan consol crude steel output 2.52 mln tn, up 7% on year
* Hindustan Copper's Oct-Dec net profit, revenue fall on year
* Shyam Metalics sells 8,962 tn of stainless steel in Jan, up 59% on year

Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:

End

Reported by Akshita Kumar
Edited by Ashish Shirke

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