Neeraj Deewan, Director of Quantum Securities told CNBC-TV18, "In the metal space I have seen some stocks that have come out with good results and earnings were good. Jindal Stainless Hisar is one stock where we think there is a lot of potential in the stock, one, because of after the restructuring the debt levels in the company has come to a manageable level and they are able to service the debt and they are now debt profit positive."
"They are going to generate huge cash in this year and next year. Plus they have their subsidiaries where Jindal Lifestyle, Jindal Steel where the growth is tremendous. They are growing at 40-50 percent. So they can be value unlocking couple of years down the line there also. So this is one stock where purely based on valuations, an improvement in the balance sheet, we still have buy call on the stock from current levels."
"The other stock would be Shriram Transport Finance. The stock has been subdued because of all the news flow regarding IDFC-Shriram merger and the shareholders of Shriram Transport were not really happy with the kind of news flow which is come. So, I think that stock has corrected and now it is trading at less than two times book value and with this year being quite of a flat year for commercial vehicles (CVs), I am expecting CV cycle should do well next year or towards the end of this year. So Shriram Transport Finance at this valuation also is an attractive bet according to us," he added.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
