{"id":706911,"date":"2013-03-25T10:38:10","date_gmt":"2013-03-25T05:08:10","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=706911"},"modified":"2013-03-25T16:04:15","modified_gmt":"2013-03-25T10:34:15","slug":"analysis-tatasteel-2","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2013\/03\/25\/analysis-tatasteel-2\/","title":{"rendered":"Analysis: TATASTEEL"},"content":{"rendered":"

We last took a look<\/a> at TATASTEEL<\/a>\u00a0[stockquote]TATASTEEL[\/stockquote]\u00a0in October last year. We were waiting for\u00a0a decisive breakout above the (down) trend-line before getting bullish on the stock. It made a 52 week low of Rs. 320\u00a0last Friday.<\/p>\n

\"Technical<\/a><\/p>\n

As you can see from the chart, the stock has tested the Rs. 320 levels twice before since 2009 and has bounced back each time.\u00a0From a valuation point of view, it is trading at a PE of ~8 which is on par with its global peers like US Steel<\/a> and Arcelor Mittal<\/a>. Plus, the Tatas have been giving a Rs. 12 per share dividend since 2011. However, the global outlook for the metal is bearish, with European steel demand being down by 30%,\u00a0and the industry remains highly fragmented.<\/p>\n

So the question is will TATASTEEL be a good \u00a0buy at today’s levels? The RSI <\/a>indicator is at neutral and\u00a0MACD <\/a>is bearish. So from a technical point of view, it is a short-term sell. From a long-term perspective, it is trading at valuations that might be a good entry point for investors who can stomach volatility. If the stock closes above Rs. 320 levels today, it is a long-term buy from our point of view.<\/p>\n

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