Stocks of metal companies are seen up ahead of closing of the February derivatives
contracts on Wednesday. The CNX Metal Index is expected to trade in the range of 2271
and 2231 in the week ahead. Yesterday, after market hours, JSW Steel announced its plan
to acquire up to 50% stake in Vallabh Tinplate Pvt Ltd, for a maximum amount of 460
mln rupees. Vallabh Tinplate currently operates a 60,000 tn per annum tinplate
manufacturing facility in Patiala, Punjab, and the company is owned by Vardhaman
Industries along with its promoters.
Hindalco' stock reflects excessive pessimism. We expects the company's operations to
improve going ahead. The green field projects should be EBITDA positive and be in a
position to cover most of the cash interest costs. The copper smelter should report higher
earnings given better smelting margins. We expect Novelis to give out dividends in
FY15E to parent Hindalco.
contracts on Wednesday. The CNX Metal Index is expected to trade in the range of 2271
and 2231 in the week ahead. Yesterday, after market hours, JSW Steel announced its plan
to acquire up to 50% stake in Vallabh Tinplate Pvt Ltd, for a maximum amount of 460
mln rupees. Vallabh Tinplate currently operates a 60,000 tn per annum tinplate
manufacturing facility in Patiala, Punjab, and the company is owned by Vardhaman
Industries along with its promoters.
Hindalco' stock reflects excessive pessimism. We expects the company's operations to
improve going ahead. The green field projects should be EBITDA positive and be in a
position to cover most of the cash interest costs. The copper smelter should report higher
earnings given better smelting margins. We expect Novelis to give out dividends in
FY15E to parent Hindalco.
