Metal Stocks Outlook for the week – 15 to 19.05.2017
Metal Stocks Outlook for the week – 15 to 19.05.2017
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Stocks of metal and mining companies are likely to primarily track cues from the Jan-Mar earnings announcements scheduled next week. Tata Steel, JSW Steel, Vedanta, and Jindal Stainless (Hisar) will report their Jan-Mar earnings in the coming week. While Jindal Steel & Power will report its earnings on May 23. Rest of the metal stocks are seen continuing with the positive trend. Stocks of Tata Steel, Vedanta and JSW Steel gained up to 5.8% this week, with the Nifty Metal index ending up almost 2% compared with the previous week close. The government on Thursday imposed a five-year anti-dumping duty on hot-rolled flat steel products, which saw the stocks rise yesterday. The trend is likely to continue in the coming week. Strong volumes and improved realisations in the domestic market and higher spreads in European operations are likely to help Tata Steel Ltd post robust earnings for the quarter ended March, even as higher coking coal costs may cap the upside. The company's net profit on a consolidated basis is seen rising over five times sequentially to 10.50 bln rupees. Net profit of JSW Steel is seen rising 2.2% sequentially to 7.46 bln rupees, while the consolidated operating profit is seen at 29.06 bln rupees. Higher raw material costs, particularly of coking coal, are expected to weigh on the earnings of JSW Steel for the March quarter, even as the company's sales and realizations are seen improving sequentially. Market Participants sees the metal-to-oil conglomerate Vedanta Ltd's consolidated net profit at 24.49 bln rupees in Jan-Mar, as against a loss in the same quarter in the previous year. Higher prices of most base metals, particularly zinc, and firm crude oil prices are expected to aid Vedanta Ltd's earnings in Jan-Mar, lifting its consolidated net profit over 31% sequentially. Jindal Stainless announced its Jan-Mar earnings yesterday. The company reported a net profit of 1.61 bln rupees for Jan-Mar, against a loss of 1.71 bln rupees a year ago. Revenue from operations increased 23.7% to 24.67 bln rupees. The stock is expected to rise at the start of the session next week.
Source : Cogencis Information Services Ltd.
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Metal Stocks Outlook for the week – 15 to 19.05.2017
( www.rupeedesk.in )
Source : Cogencis Information Services Ltd.