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Last Updated : Jun 09, 2017 03:50 PM IST | Source: CNBC-TV18

Tata Steel looks strong, target Rs 560 in 2 months; hold Vimta Labs: Pankaj Jain

Pankaj Jain of SW Capital is of the view that Tata Steel looks strong for target price of Rs 560 in next couple of months.

Pankaj Jain of SW Capital told CNBC-TV18, "I think Tata Steel is still looking strong. As conveyed about Colgate, I think most of the steel stocks, specifically has something to do with Tata Steel, something like JSW Steel, they are looking extremely strong. They may have certain bad days or a bad week, but overall I think if I could hazard a guess. If one has a viewpoint of next three to six months, I expect Tata Steel to be somewhere between Rs 540 and Rs 560 in next say couple of months and there are reasons for that."

"I think the metal cycle as such is looking up. China is no more that big a threat that it was say about a year, year and a half back because of domestic barriers which have been imposed by say India and even European Union, certain European countries. Tata Steel being a sort of global player now, I think its European operations have stabilised, they have settled the pension issues in Europe," he said.

"So, all-in-all things are looking pretty rosy and robust for metal industry. Not to forget, generally during this weakfish dollar scenario, most of these commodity players tend to move up. So, momentum is definitely in favour of the market and Tata Steel."

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"I think Vimta Labs is a steady stock. They are into that Contract Research and Manufacturing Services (CRAMS) space. The stock has been doing decently well, both on the revenue front and the bottomline front. The point which I have noted in recent past, some of these smallcap mutual funds, they have added into this stock. So, I think that sort of shows that the quality of the stock is good."

"The stock has been a pretty steady performer from levels closer to say Rs 65-70 to current level. We have not seen any major dip. So, all-in-all, I think it is one stock one should continue to hold on; no reason to book out or come out of it," he added.
First Published on Jun 9, 2017 03:46 pm
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