Take time, evaluate the impact of China slowdown, coal auctions on metal cos before taking a call: Neeraj Deewan

In a chat with ET Now, Neeraj Deewan, Director, Quantum Securitie, shares his view on a sharp correction in the stocks of Hindalco Industries and other metals stocks on Monday.



ET Now: What is your view on Hindalco Industries and the overall metals pack?

Neeraj Deewan: One immediate setback would be those coal blocks are re-auctioned. Also, for Hindalco and JSPL, the demand is really not picking up. The core demand needs to pick up. What is happening in China is also not at all encouraging for these commodity companies. From a long-term perspective, certain stocks such as Tata Steel are becoming very attractive, but then we do not know whether this is a bottom or we can see another 10 per cent downside from the current levels.



Therefore, one need to be very careful in investing in these stocks. We have to evaluate which company has bid at what price, and the impact it wuld be having on the balance sheet. Then only, on can take a call on these stocks. I do not think there is any hurry to invest in these stocks, you still have some time to analyse and then decide where to put your money in.