< Return to Bears page

Tata Steel Limited (TATASTL-BY)/Bears/More weakness to continue

Many negative factors have been surrounding the Indian steel industry in the last month or two with no signs of abatement. More recently, Government of India has announced import duty on steel imports and one of the biggest players in the industry SAIL declared production cuts at the beginning of the week. Apart from news based weakness, the stock needs to battle the technical and fundamental wars too. It has a feeble support at 150, which seems it will be easily cracked. Fundamentally, how much value can it plead for when its full year diluted earnings per share are teethering at Rs.17 and only negative growth expected in the coming quarters? Add to that global recession, decline in demand and general fear amongst investors, and you get a perfect recipe for a sure shot fall to much lower than present levels. Any votes for Rs. 110?

Wikinvest © 2006, 2007, 2008, 2009. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.