Tata Steel may rally to Rs 500, says Patnaik

Tata Steel may rally to Rs 500 in over a 12 months period, says Tirthankar Patnaik, EVP - Institutional Sales, Religare Capital Markets.

Patnaik told CNBC-TV18, “In terms of what has happened on corporate movements on Pantaloon, things will not go much worst on here but at this point I don’t think investor interest is there in stocks like Pantaloons at the moment.”
He further added, “Tata Steel have done well on revenues. So to that extent, the numbers were in line with street expectations and we will not be too negative on it. We maintain a positive view on the stock. Our target price is meaningfully above current levels. So from Rs 390, we believe that it can go upto Rs 500 in over a 12 months period. What was the mess was largely on higher tax rates and I don’t think that changes our view on the stock or on the sector. We believe that in the ferrous space, we like Tata Steel and we have a cautious view on Steel Authority of India Ltd (SAIL) there. So on Tata Steel yes, I was not too bit by the lower numbers on adjusted PAT levels.”