Mayuresh Joshi, VP Institution of Angel Broking told CNBC-TV18, "Seeing the operational performance it is quite unlikely that the profits or the margin improvement will happen on Steel Authority of India (SAIL) over the next two to three quarters. So, one needs to have a longish horizon. Even more than 2-3 years because even with the capacity expansion from 12.3 mtpa to around 24 mtpa with almost Rs 72000 crore of capex laid will obviously not aid the company in the current scenario where the cost overruns on its projects and the kind of demand supply dynamics for the steel industry generally are looking very bleak."
He further added, "The investor should possibly look at a short term horizon of 3-6 months to exit the stock on rallies and possibly look at stocks in pharma or consumer durable space." Also Read: SAIL to meet increased iron ore needs from captive sources
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