Metal stocks like Tata Steel, JSW Steel and Jindal Steel and Power are looking very convincing from here on, says Rahul Shah, VP-Equity Advisory, Motilal Oswal Financial Services. Excerpts from an interview:
Would you apply the same logic to the hotel sector picks seeing that if travel is picking up ideally we should likely also start to see hospitality pick up?
I think in the hospitality sector there is still a lot of value in a few stocks. Obviously the way markets have risen the stocks have also seen a surge but I feel that the valuations are still justified. There could be some more momentum in the stocks. Travel has picked up and so the hospitality sector is going to do well too.
So I think Indian Hotels remains a clear winner as there is a lot of value in the stock from the current levels. The people who have a horizon for a year or so can look at going long on Indian Hotels.
Lots of traction is being witnessed within the metals basket with the brokerages turning positive on long term prospects, do you like the space?
I think yes, metals have been in the flavour and the entire space has done quite well. I think metal stocks like Tata Steel, JSW Steel and Jindal Steel and Power are looking very convincing from here. We are seeing firm iron ore and steel prices and the production is also good. The valuations are also justified as the last quarter results for both Tata Steel and JSW Steel were quite promising and the commentary was also very robust from the management side. So in my view metals and steel stocks should do well. I think in the near term 10-15 per cent can be easily made in this space.
We have got the listing of Burger King that is going to take place on the 14th of December. We have seen quite a bit of traction as well when it comes to the IPO and retail participation has been strong. What are you advising on Burger King, do you like the space as a whole?
I think this space as a whole looks interesting and for a longer term investor one should definitely apply for it. I think even in the near term for the people who want to go for the listing gains could also make some money. I think the valuations are justified vis-Ã -vis the current listed players so in my view money can be made over a period of time in Burger King.
