Prabhudas Lilladher has maintained its reduce rating on Tata Steel with a target of Rs 406 n its July 30, 2009 research report.
"Tata Steel reported PAT of Rs 7.9 billion which was below our expectation of Rs 8.8 billion. Net revenue declined by 9%, primarily on account of a sharp fall of 57% in the revenue of Ferro alloys and mineral division (FAMD, resulted in 88% of the overall fall) and rest of the decline was contributed by the steel business since volume growth of 22% was not enough to contain the 20% fall in realisations. The stock looks expensive given the uncertain outlook on the recovery in its Europe market and poor returns on a long term basis. We maintain ‘Reduce’ on the stock, target of Rs 406," says Prabhudas Lilladher's research report.
http://www.moneycontrol.com/india/news/recommendations/reduce-tata-steel-targetrs-406-prabhudas-lilladher/409233