Citi has downgraded Tata Steel, citing concerns over the company's European operations, domestic steel prices, and its leverage situation. This was highlighted in their post-earnings review of the company's stock. The bank has reduced Tata Steel's target price to ₹100 from ₹140, flagging potential risks if steel prices in China fail to rise, which could impact the company's future profitability.
The downgrade also comes amid uncertainty over Tata Steel's restructuring plans. While the specifics of these plans were not detailed in the report, the mention indicates a level of concern about the company's strategic direction and its ability to navigate current market conditions.
On the other hand, Dabur India continues to receive a positive outlook from analysts. Jefferies has maintained a 'Hold' rating on the company with a price target of ₹600. The firm praised Dabur's Q2 performance, which was driven by margin expansion and higher ad-spends. Dabur's management also expressed optimism for future growth.
However, CLSA gave Dabur an outperform rating but cut the target price slightly to ₹609 from ₹640. The firm anticipates a reversal of the festive sales impact in Q3 and emphasizes the importance of the winter season for H2 revival. CLSA reiterated Dabur's EBITDA margin guidance of 19.5%, showing confidence in the company's financial performance despite the minor adjustment to its price target.
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