Steel stocks are in momentum: Seshadri Bharathan

Seshadri Bharathan, MD & CEO, KSEMA Fincon Ltd.

Would you buy into the steel stocks as a result of this?

Seshadri Bharathan: Definitely yes. At this point of time, steel stocks are in momentum. We are seeing that there is a lot of institutional interest in Tata Steel post the sale of Teesside plant to Thailand Steel Company. If you look at fundamental numbers also, the earnings per share of sale would be around Rs. 21 for FY12 and stock trades around 9-10 times that. As far as Tata Steel goes, it trades around six times their EV/EBITDA number for FY12, so all said and done at this point of time, most of these companies fundamentally look good and I see a price movement of anywhere between 3 5% in most of these steel stocks.