In today’s briefing:
- Global Stocks Outlook: Where Is the Bottom for This Crash?
- JSW Steel: Low Cost Capacity Expansion Underpin Premium Valuations
- Can Tata Motors Withstand the 25% U.S. Auto Tariffs Or It Will Collapse Further?
- Pace Digitek Ltd Pre-IPO Tearsheet
Global Stocks Outlook: Where Is the Bottom for This Crash?
- Analysis of the NIFTY, Nikkei 225, Hang Seng, KOSPI 200, S&P/ASX 200, S&P 500 and Nasdaq-100 stock indices: where is the bottom for the global stock market rout?
- As explained in this insight, our models have been battle-tested since 2008. While they can’t predict the future, they provide valuable insights for identifying market bottoms during crashes.
- What follows is a focused analysis of each market index we track, aimed at identifying potential bottoms amid extreme sell-offs, helping position ahead of the next Bear Market rally/reversal.
JSW Steel: Low Cost Capacity Expansion Underpin Premium Valuations
- JSW Steel has grown its domestic steelmaking capacity at CAGR of 14% over the last 2 decades (2x industry) and at 25% lower costs
- Gradual capacity ramp-up at recently completed expansion at Vijayanagar (5m) and actively pursuing 10-15mt of new capacity additions over the next 3-5 years
- Valuations: JSW Steel trades at premium to its 5yr average EV/EBITDA likely due to a) impending imposition of a 12% safeguard duty b) superior capital allocation etc.
Can Tata Motors Withstand the 25% U.S. Auto Tariffs Or It Will Collapse Further?
- The US imposed a 25% tariff on auto imports, affecting Tata Motors’ JLR unit, where the US accounts for 22% of sales.
- This could shave off 200–300 bps from JLR’s EBITDA margin or weaken US volumes if costs are passed on to consumers.
- Tata Motors’ FY25 EBIT margin guidance of ≥8.5% looks ambitious; a realistic range may shift to 6.5–7.5% without swift demand or cost-side offsets.
Pace Digitek Ltd Pre-IPO Tearsheet
- Pace Digitek Ltd (0180382D IN) (PDL) is planning to raise about US$105m through its upcoming India IPO. The lead bookrunner for the deal is Unistone.
- PDL provides multi-disciplinary solutions in telecom passive infrastructure, offering turnkey services across India, Myanmar, and Africa. Initially manufacturing passive equipment, it expanded into products, projects, O&M, and service solutions.
- PDL transitioned from manufacturing passive telecom equipment to providing multi-disciplinary solutions, including telecom, energy, and ICT products, services, and turnkey projects, with a focus on O&M, renewables, and infrastructure development.
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