28 Jun , 2021 By : Kanchan Joshi
Stocks to buy today: After the strong beginning of July series on Friday, a few metal stocks are back on the radar of market observers. Arijit Malakar of Ashika Stock Broking, and Sandeep Matta, Founder at TRADEIT Investment Advisors, recommend Tata Steel and Steel Authority of India (SAIL) stocks, saying that demand for steel is expected to continue moving northward in next few months and hence these stocks may pick momentum after the recent profit-booking.
Tata Steel share price forecast
Speaking on Tata Steel share price outlook Arijit Malakar, Head of Equity Research, Ashika Stock Broking, said, "Tata Steel reported better than expected Q4FY21 numbers on the back of robust performance from domestic operations. Improving global economic outlook amid receding covid cases, US stimulus package towards infrastructure and reduced supplies from China would push steel prices higher. In this backdrop, Tata Steel would be the key beneficiary on back of its integrated operations. We hold our positive view on Tata Steel with target of Rs1,315 and stop loss of Rs1,100."
Sharing fundamentals of Tata Steel, Sandeep Matta, Founder at TRADEIT Investment Advisors said, "Tata Steel has delivered strong financial performance with strong revenue growth and margin expansion along with solid free cash flow. Strong recovery in India business, efficient working capital management coupled with sharp capital allocation should further improve the prospects. The company’s strong bottom line performance has helped it to reduce the debt significantly in past one year. We recommend to accumulate this counter for the target price of Rs1,350 to Rs1,475."
SAIL share price outlook
On SAIL, Sandep Matta of TRADEIT Investment Advisors said, "Steel Authority of India (SAIL) is the best play of higher steel prices as it is backward integrated with captive ore and has higher operative and financial leverage. Strong steel cycle will help realization to remain high for next few months and therefore we recommend buying this counter at the current levels for the target of Rs152 to Rs165 within a year and advise to keep stop loss at Rs117 level on closing basis."
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