Limited downside seen in Hindalco Industries: SP Tulsian

SP Tulsian of sptulsian.com feels that Hindalco Industries has limited downside from hereon and the stock should bottom out.

Tulsian told CNBC-TV18, “Hindalco Industries is reaching to its bottom and I don’t think that much of the downside is seen from hereon, because if you see the behavior of the other metal stocks largely, whether you talk of the Sesa Goa, Sterlite, Jindal Steel and Power, all of them have been holding on with a marginal gain of maybe about 30-50 bps to about 1-1.5%.”
He further added, “Same thing seems to be happening for the Hindalco also that maybe it must have reached close to its bottom and the kind of shorts we have seen in the system having built up also can act as a trigger for the stocks to move up. So maybe a couple of rupees downside from hereon and the stock should bottom out.”
“For last one week we have seen that kind of up move coming in and more specially maybe one can attribute that Ceat has been moving up because of the good results the company has posted. But as you have rightly said that overall we have been seeing all the tyre stock whether you talk of JK Tyre, Apollo Tyres or maybe the Ceat Tyres. So because the reduction in the rubber prices on the global market as well as in the domestic market probably and since rubber constitutes a major chunk of the cost of production of any tyre company probably that is keeping this positive bias on all tyre stocks.”