Hold Tata Metaliks, target price Rs 900: ICICI Direct

ICICI Direct has hold call on Tata Metaliks with a target price of Rs 900. The current market price of Tata Metaliks is Rs 865.85. Time period given by analyst is a year when Tata Metaliks price can reach defined target.

Tata Metaliks, incorporated in the year 1990, is a Small Cap company (having a market cap of Rs 2734.77 Crore) operating in Metals - Ferrous sector.

Tata Metaliks key Products/Revenue Segments include Pig iron, Ductile Iron Pipes, Other Operating Revenue for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Standalone Total Income of Rs 792.43 Crore, down -10.13 % from last quarter Total Income of Rs 881.77 Crore and up 14.33 % from last year same quarter Total Income of Rs 693.12 Crore. Company has reported net profit after tax of Rs 9.48 Crore in latest quarter.

The company’s top management includes Mr.Koushik Chatterjee, Mr.Sandeep Kumar, Mr.Krishnava Satyaki Dutt, Dr.Pingali Venugopal, Dr.Rupali Basu, Mr.Amit Ghosh, Mr.Sanjiv Paul, Ms.Samita Shah. Company has Price Waterhouse & Co Chartered Accountants LLP as its auditors. As on 30-06-2022, the company has a total of 3 Crore shares outstanding.

Investment Rationale
Domestic demand of pig iron is expected to firm up in Q4FY23 as utilisation levels in general castings, agriculture, etc. are likely to improve. Furthermore, demand outlook for DI pipes for Q4FY23 is robust in line with government’s increased outlay through Jal Jeevan mission to provide drinking water.

Promoter/FII Holdings
Promoters held 60.03 per cent stake in the company as of 30-Jun-2022, while FIIs owned 0.91 per cent, DIIs 8.96 per cent.