Buy Tata Steel, says Jagannadham Thununguntla

Jagannadham Thununguntla, Strategist & Head of Research of SMC Global Securities told CNBC-TV18, "At these valuations, Tata Steel is appearing to be in good valuation zone for the long-term buying. Having said that in the short-term, probably there maybe one more wave of selling coming towards Rs 230. So, it is just a short-term view in terms of the selling pressure. For a medium-term, I feel the stock is definitely at around 4.5 price-earnings (PE) multiple."

"Even if we consider all the slowdowns and be it Europe slowdown, China slowdown, whatever it might be, but definitely at 4.5 PE multiple Tata Steel is a buy. Just wait for that entry point from the tactical point of view, but it is a good buy," Thununguntla said. Also Read: CLSA downgrades Tata Steel to sell; shares hit 4-year low