Exit SAIL, says Rajesh Agarwal

Exit SAIL, says Rajesh Agarwal, Head of Research, Eastern Financiers.

Agarwal told CNBC-TV18, "I am recommending a sell on SAIL at this point of time because in the near future there are more pains in the stock because as we have seen in the last quarter numbers the EBITDA dropped by around 29% year on year and around 44% quarter on quarter. The margins were under pressure because of raw material cost, employee cost going ahead."

He further added, "Going ahead also I think these pressures are going to continue. The expansion of TISCO has been delayed and the management believes that demand slowdown will be there in the next one or two quarters and demand revival would take place in a second half of FY12, which itself shows that the stock is going to be under pressure. So I believe the stock is in a capacity to touch a price target of maybe Rs 90-95 in the next one or two months. So that