Tata Steel has reported a 36.8 percent jump in consolidated net profit at Rs 1,254 crore for the July-September quarter led by income from land sale in Mumbai.
Prasad Baji, Senior VP, Institutional Equities – Research at Edelweiss Financial Services recommends buying Tata Steel.
Prasad Baji, Senior VP, Institutional Equities – Research, Edelweiss Financial Services sees the hike of royalty on iron ore being passed on by the ferrous metal companies.
Prasad Baji of Edelweiss is more concerned about the FSA the company has signed for 71000 MW. And the additional 211 million tonne the company will have to meet for these new FSAs.
Hindustan Zinc, Hindalco Industries and Tata Steel are the top picks, says Prasad Baji of Edelweiss Securities. "Within Hindustan Zinc there is mine metal volume growth of 10-15 percent this year and next year also could be around 5-10 percent," he adds.
Steel demand it is not enough to absorb steel price hike, says Prasad Baji of Edelweiss Securities. In the metal space he is bullish on Hindustan Zinc, Tata Steel and Hindalco.
Prasad Baji of Edelweiss Securities said there is no official announcement on the deal and there is likely to be a number of twists and turns in the deal. According to him, Ultratech will be keen about the acquisition and since Jaypee is looking at exiting its cement business, the deal maybe struck soon.
An empowered group of ministers (EGoM) on Wednesday gave Hindalco the go-ahead to start production from the Mahan coal mines in Madhya Pradesh. Prasad Baji, senior VP - institutional equities - research, Edelweiss Securities says, this was actually quite awaited for a long time.
In an interview with CNBC-TV18, Prasad Baji, Senior VP - Institutional Equities, Research, Edelweiss Securities Limited and J Mehra, Director of Essar Group and CEO, Essar Steel Holdings, speak about the announcements made for the metal sector in the budget.