Foreign brokerage Jefferies stated that it finds risk-reward for the country's steel far inferior to a year ago and downgraded Indian steel stocks.
"We believe margins for Indian steel companies have peaked and will go lower by FY23 and reduced FY23 EPS for Tata steel/JSW Steel by 18 per cent/26 per cent," stated Jefferies.
Jefferies also expects EPS falling 44 per cent/21 per cent YoY for Tata steel/JSW Steel in FY23.
The Chinese demand is shifting from urbanization and industrial development to new economy infra such as renewables and EVs, stated Jefferies.
(With inputs from IANS)
