Steel stocks may see 20-30% upside: Amit Khurana

Amit Khurana of Dolat Capital Market told CNBC-TV18, "We believe that the ferrous prices and the steel prices may have closely bottomed out. We do not see much downside on that segment and therefore there will be a quick rebound in the steel prices and that will eventually reflect in the valuations for the stocks on the steel side. But on the non-ferrous side, if you look at the 2009 lows for most of the non-ferrous products, they are still a meaningfully higher than those levels." "There may be some more pain in some of these sectors. But, we will probably be seeing the steel prices bottoming out first and therefore, you will have some situations there. Apart from this particular, purely a technical situation of the prices bottoming out, I guess the stock prices in most of these may have already bottomed out. While you may still have concern on the growth numbers, still a concern on broader sort of earnings situations, we believe that most of these are not reflected in the current valuations and therefore the downsides are limited," he said."Upsides are very difficult to call. You have a quick 20-30 percent rebound which is very much possible considering the sharp decline that we have seen, but to capture that, it is always going to be a challenge. So, that is how we are positioned. We are probably seeing the worst of the pricings and valuations as of now. How much of a quick recovery we get to see, the jury is out on that," he added.Disclosure: Analyst may have personal holdings.