Tata Steel top pick in metal space: Ajay Srivastava

In a chat with ET Now, Ajay Srivastava, Chief Executive Officer, Dimensions Consulting shares his views on metals pack. Excerpts:

ET Now: What is it that you are liking from the metals pack?

Ajay Srivastava: Go ahead with Tata Steel. That is the only stock we recommend from this space. The reason I do not like SSLT is because in the Vedanta Group, shareholders never make money at the end of the day. If you look at the past 10 years of Vedanta's history and the transactions that they have done, shareholders have always lost money. That is why we do not believe that irrespective of the fundamentals, you can go and invest in SSLT; rather go invest in Tata Steel which will give you a safer and a better return.

ET Now: But Tata Steel is already up more than Rs 150 from the recent low? Do you think bulk of that beta rally in Tata Steel is over?

Ajay Srivastava: You are right, but it is so in every stock. If you look at history, L&T was at Rs 600 in August, it is now at Rs 1100. Looking at the past trend, it is important to consider that Tata Steel is up by Rs 150 but if you sit at a point of time and say I do not have an investment, should I go and invest, the answer will be Tata Steel. We must recognise that the big 40-50% returns are off the table. Now we are talking of 10% to 15% to 20% returns and that is what we are playing for. The 50% return game is already over at this point of time on these valuations.