Sandeep Shenoy of PINC Research is of the view that one can exit SAIL on declines.
Shenoy told CNBC-TV18, "Steel Industry is definitely a buy on the current juncture because despite what is happening on the international phenomena on the pricing front, I think the advantage for integrated players in India is definitely going to be visible and it is coming into foray in the coming few quarters. But there could be shorter-term impact on SAIL, which is difficult to quantify at the current level; one is the coking coal prices because we have no idea of how it is going to pan out and impact its bottomline from July onwards and that is, when its exposure would be the most. Also the wage bill and which way it is going to impact because we are also clueless about that. So I think considering these things and we are headed for an election year, where the wage will have to be passed on to the staff of SAIL. I would be very cautious on this counter and try to exit on all declines because probably amongst the large players this is one of the weakest players among that group, so I would be cautious on that counter."
