Hi salil, simply copy & pasting my reply to same Q some 18 days before.
A very good basic Q.
I also have no answer for it.
But my logic is – It superficially looks like a steel / cyclical company but may be a consumption theme.
The icing on the cake is Tata group.
So maybe we have to wait for the markets ( FII / DII) to realise that its a consumption story ( not a cyclical one).
Only then it will run up. Till then it will hover around single digit PE.
In recent quarters, FIIs are marginally increasing their stake.
So the returns will depend on – when and whether the market “CONSIDERS” this as a consumption story?
Till then just wait.
Or simply the market know something ( bad) which we retailers dont know.
So I am playing it with caution with only 1% stake in my portfolio and will add ONLY IF it moves up.
personal views
dr. vikas
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