Tata Steel may underperform: Mehraboon Irani

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Tata Steel may underperform: Mehraboon Irani

Mehraboon Irani of Centrum Broking is of the view that Tata Steel may underperform for long-term.

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Excerpts from Your Stocks on CNBC-TV18 Watch the full show » ALSO READ See what other Experts & Brokerages are saying about Tata Steel See messages about Tata Steel Tata Steel BSE | NSE 10/02/12 Are Mutual Funds betting on Tata Steel?

Mehraboon Irani of Centrum Broking is of the view that Tata Steel may underperform for long-term.

Irani told CNBC-TV18, "We are still quite bearish on the global steel outlook especially Europe where prices are going to be under pressure. So while Tata Steel management is doing its best possible to improve as far as operations goes of Corus, I think that could continue to remain on track for quite some time to come at least on the consolidated numbers of Tata Steel go. So there are reasons to believe that Tata Steel will continue to under perform for some more time to come. FY11-12 onwards the profitability will improve but for time being there are reasons to remain bearish on this particular sector as far as steel goes on he whole globally. The consolidated numbers are under pressure."

He further added, "Considering the fact that I am still positive on the market because of liquidity the stock can move up a little bit from here having fallen post the poor numbers which the company announced. But on the whole there are not too many reasons for thinking of buying into this stock, if he wants to hold he can but the stock over the little longer-term could remain an underperformer."