Exit MMTC, buy Tech Mahindra on declines: Mayuresh Joshi

Mayuresh Joshi, VP Institution at Angel Broking told CNBC-TV18, "Our own expectations are that the price for Minerals and Metals Trading Corporation (MMTC) should settle down around that offer for sale (OFS) price, around the bid price at Rs 60 or Rs 66. Core fundamentals for the company are not justified also in terms of valuations. Even at Rs 60-66 it would be trading at around 100-100 times going forward."

He further added, "The old discussion was a year back that it was trading at very expensive valuations and rightfully so. If we look at the balance sheet it has posted a loss of around Rs 70 crore against a profit of Rs 70 crore for the year gone by. The core business margins are very minimal and very less, so in my opinion the investor should exit the counter and possibly look at counters like Tech Mahindra where the opportunities after the merger remains and the synergies between both Mahindra Satyam and Tech Mahindra would play out over the next three to four quarters. So, exit on rallies from MMTC and possibly look at entering Tech Mahindra on declines."