Accumulate Tata Steel, Hindalco on declines: Ashit Suri

Ashit Suri, Fundamental Research Analyst, JV Capital Services in a chat with ET Now talks about Tata Steel and other metal stocks.

Specifically on some metal companies, Tata Steel in particular, it had a good run, 206% gains coming in this entire financial year but going forward, how are you viewing some of these steel companies in the light of a price rise?

Tata Steel is a good long-term bet but for the time being, this stock has run up quite a bit. It is at fair valuations right now. Yes, there are going to be steel price hikes going ahead possibly but then we have concerns on the raw material price increases as far as coking coal is concerned, iron ore is concerned.

Further there is also going to be a demand issue. We have got to see how demand pans out over the next few quarters as far as their Corus acquisition is concerned, so I feel that one can accumulate stocks like Tata Steel, Hindalco on declines. Currently they are at fair valuations, so I do not see too much appreciation in the near term. They are good long-term stories but one should accumulate on declines.