KSEMA Fincon puts 'hold' on Nalco

ET Now spoke to Seshadri Bharathan, MD & CEO, KSEMA Fincon Ltd, on his views on stocks.

ET Now: What is the call on Nalco?

Seshadri Bharathan: My suggestion would be to hold the stock. I would not initiate fresh buys at this level though the environment for aluminium business has improved but for this company there are challenges in terms of coal supply etc. which needs to be addressed.

Also, in terms of valuation, the stock trades at around 27 times their FY11 earning and 22 times their FY12 earning so valuations looks on a slightly higher side right now. So just to benefit out of the bonus and stocks split news I would advice investors to hold on to the stock.