Prefer Hindalco to Tata Steel: Raheja

Prefer Hindalco Industries to Tata Steel, says Nitin Raheja of Rada Advisors.

Raheja told CNBC-TV18, "One has to look at commodities companies from each of them on an individual basis depending on how much of supply chain integration they have within each of them because clearly the base raw material prices have been going up; whether it is iron ore or whether it is cooking coal and these are probably going to be hurting some of these companies. So, between the two at this point of time I think Hindalco is a little more better placed than Tata Steel." Hindalco trailing 12-month (TTM) EPS was at Rs 10.76 per share. (Sep, 2010). The stock's price-to-earnings (P/E) ratio was 22.02. The latest book value of the company is Rs 145.84 per share. At current value, the price-to-book value of the company was 1.62. The dividend yield of the company was 0.57%.