Gladiator Stocks - Tata Metaliks - ICICI Direct

Technical View

The metal space has been regaining momentum after past couple of week's breather. Within this space, Tata Metaliks has retested its three year breakout area and formed higher base as elevated buying demand thereby offering fresh entry opportunity with a favourable risk reward

The stock has witnessed breakout with strong volumes which are 6 times the average 50 day volume of 11 lacs signalling strong participation and sustainability of uptrend

Fundamental View

- The Investment lined up in development of water infrastructure and allied projects augurs well for Ductile Iron (DI) pipes demand, which is likely to grow at a steady pace in the medium term. To cater to this opportunity, Tata Metaliks (TML) has already started work on doubling its DI capacity, thereby providing healthy revenue visibility in the longer run

- For FY21 Tata Metaliks reported healthy performance wherein its EBITDA margin increased sharply on a YoY basis. TML's EBITDA margin for FY21 stood at 20.3% as compared to 13.9% during FY20. For FY21, TML reported EBITDA of Rs. 389 crore, up 37% YoY, while TML's ensuing PAT for FY21 stood at Rs. 221 crore, up 32% YoY

For details, click on the link below: Link to the report

Shares of TATA METALIKS LTD. was last trading in BSE at Rs.1162.35 as compared to the previous close of Rs. 1137.15. The total number of shares traded during the day was 64405 in over 3345 trades.

The stock hit an intraday high of Rs. 1185 and intraday low of 1095.8. The net turnover during the day was Rs. 73615309.

Source : Equity Bulls

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