SAIL looks weak in metal sector: SP Tulsian

SP Tulsian of sptulsian is of the view that SAIL is the weakest in the metal sector.

Tulsian told CNBC-TV18, “There are two problems with Steel Authority of India (SAIL). One is the financial performance, second is the offer for sale (OFS) because the government has been dilly-dallying for last one year whether they will be going ahead with the OFS or not. But probably that has a big overhang because when you compare it with Tata Steel and JSW Steel you will find SAIL as the most inferior in terms of the financial performance but that overhang of OFS is also looming large on the company and the share price. So it is difficult."
He furtehr added, "If people have to have pecking order then probably JSW Steel comes on the top. Tata Steel have problem of Corus. So SAIL comes at the bottom of the ladder and that problem is going to continue. I am quite apprehensive about the financial results of SAIL coupled with Tata Steel also. So overall negative view on the sector, OFS overhang and SAIL is the weakest in the sector.”