In today’s briefing:
- RPPL: Weak Q3FY25, However Medium-Term Outlook Is Strong
- EM Spreads – Weekly News & Views
- Tata Steel (TATA IN): Scaling Up Domestic Operations, Easing EU Drag
RPPL: Weak Q3FY25, However Medium-Term Outlook Is Strong
- Earlier this month, RPPL announced a new factory to expand its thermoforming and extrusion capacity by 1250 MTPA and 1600 MTPA, respectively. This will come on-stream within a month.
- RPPL reported a weak Q3FY25 due to adverse fluctuation in raw material prices as well as seasonal impact. Q3 tends to be a weak quarter seasonally.
- RPPL’s capacity expansion has been leading to upfront expenses. The new Olive Ecopak JV also reported losses, share of which was INR -2.6cr in Q3FY25.
EM Spreads – Weekly News & Views
- Argentina’s $20 Billion IMF Deal Could Calm Markets Ahead of Midterms
- Pemex Monthly Report: February/Minerva Positioned to Benefit from China’s Shift in Protein Imports
- Cemex: Stable Outlook Affirmed Despite Hybrid Reclassification Dragging Metrics/ YPF Launches “Vaca Muerta Institute” to Support Shale Growth
Tata Steel (TATA IN): Scaling Up Domestic Operations, Easing EU Drag
- Tata Steel’s India business is poised for multi-year volume expansion, backed by ample land availability across three key locations.
- Losses from UK and Netherland operations set to ease. UK operations are under transitioning phase from BF to EAF. Discussions are on with the Netherlands govt.
- Valuations: Tata Steel trades at 6.5x EV/EBITDA based on estimated FY26 EBITDA. Stock has outperformed local indices and could likely continue.
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