Tinplate prices are climbing due to expensive propane gas supplies for Tata Steel's TCIL and JSW Steel, affected by the ongoing West Asia conflict. Major metal container manufacturers like Amul and Nestle might look into alternative solutions, as the Metal Container Manufacturers Association (MCMA) reports a significant 20-25% production impact due to these supply issues.
Steel companies Eternal, Titan, JSW Steel, and Tata Steel are expected to experience significant profit growth of over 50% YoY in Q4, with Eternal's Profit After Tax (PAT) projected to surge by a remarkable 432%, while Titan's PAT is anticipated to increase by nearly 60%. These strong numbers indicate a promising quarter for the steel sector.
Jefferies identifies undervalued prospects for JSW Steel and Tata Steel due to price discrepancies, predicting potential EBITDA growth of 30-45% in FY27E. This optimistic outlook stems from increased demand in China and a rise in domestic steel prices.
Despite having a P/E ratio of 34.3, higher than the industry average of 26, JSW Steel maintains its significant presence in the ferrous metals sector and stock market. However, MarketMojo has downgraded its rating to 'Hold', suggesting potential caution for investors.
Tata Steel and Jindal Steel could see a boost in their Q4 earnings this fiscal year due to increased domestic prices, reduced imports, and robust demand. However, potential issues with LNG supply may impact JSW Steel's spreads.
The National Stock Exchange (NSE) introduces Dated Brent Crude Oil futures on April 13, potentially increasing competition for MCX in the commodity market. Meanwhile, TVS Holdings invests INR 526.8 crore in HCIFPL, and JSW Steel completes the transfer of BPSL, bolstering its joint venture with JFE Steel.
JFE Steel has invested INR 7,875 crore to secure a 25% stake in JSW Kalinga Steel, marking a significant joint venture with JSW Steel. Plans are underway for JFE to acquire an additional 25%.
JSW Steel's shares are currently showing improvement, marking a positive trend in the market. On the other hand, Tata Steel has bounced back by approximately 3%, recovering from recent lows.