Business Today

Bull Run

Steelmakers had been de-leveraging their balance sheets in the last 3-4 years to stay fit to cash in on the next uptick of the steel cycle.
twitter-logo Nevin John   New Delhi     Print Edition: March 24, 2019
Bull Run

Indian steel makers are on the cusp of a bull run as experts foresee strengthening of steel prices, and better capacity utilisations.

Steelmakers had been de-leveraging their balance sheets in the last 3-4 years to stay fit to cash in on the next uptick of the steel cycle. The government's plan to extend anti-dumping duty until 2022 is also welcome news.

The key brokerages are hiking target share prices of steelmakers and rating upgradation of stocks.

The most likely to benefit are Tata Steel and JSW Steel. Both bought distressed assets, added capacity, and turned their manufacturing cost competitive. If they get a multi-year spike, both will be able to regain their lost glory.

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