Buy Tata Steel; Target of Rs 875

Keep buying on Tata Steel with a target price of Rs 875. "For 1QFY2009, Tata Steel posted a yoy Topline growth of 39.6% to Rs 43,508 cr (Rs 31,162 cr). This was mainly on account of the delivery growth of 11.5% and strong steel prices in the European markets. The domestic steel players have been struggling to maintain their Margins, due to intervention by the government to control prices. Tata Steel has, however, been an exception on account of being the most efficient player and being the most integrated player in both iron ore and coking coal compared to its peers. However, correction in the global steel prices remains as a major risk for Corus?s profitability."