Tata Steel, JSW Steel, SAIL to Jindal Steel - Important trend sighted, check impact
CGS-CIMB highlights that the stock valuations are now at the higher levels and it has downgraded the sector's rating to underweight. Tata Steel and JSW Steel are trading near all-time high EV/EBITDA valuations. This becomes even starker if CGS-CIMB accounts for steel prices likely falling in coming months. Thus, CGS-CIMB downgrades rating on the sector to Underweight (from Overweight) and to Reduce on Tata Steel and JSW Steel (from Add).
CGS-CIMB retains their Add rating on Jindal Steel and Power Limited (JSPL). CGS-CIMB believes investors will do well to sell SAIL, JSW Steel and Tata Steel: Reuters