Buy Hindalco Industries on dips, says Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "A lot of positives have got played out and with the kind of numbers that Tata Steel had produced both in terms of an EBITDA per ton on the Indian operations as well as the European operations itself, very encouraging set of numbers. What happens in terms of resolution for its business sale in the UK is going to be a huge amount of relief in terms of how the money starts flowing in. However, in terms of their core performance, the performance has been exemplary."

"Again on the domestic front, as the Kalinganagar operations achieve full optimisation in terms of utilisation levels being reached in the next few quarters, Tata Steel probably is in a much advantageous position at this point of time. So, again I think steel realisations because of government intervention on the domestic front, did help a lot of steel companies including Tata Steel. However, as demand gradually starts coming back, Tata Steel is something that I would advise investors to hold on."

"My own sense is that within the metal space Hindalco is something that I will continue to prefer on declines. Novelis has been performing exceptionally well and that performance can very well continue with the auto component shipments expected to reach 25 percent in the next few quarters. They are deleveraging their balance sheet, interest payments are going down, the capex is quite manageable at USD 250 million odd over the next two years and the cash flows at USD 350-360 million will ensure that the Indian operations which are running at optimum capacity are duliated by Novelis. So, the sum of parts on a consolidated basis should improve as well. So from a bottom up approach any decline on Hindalco in my opinion becomes a very good buying opportunity," he said.