Remain invested in Tata Steel: Tulsian

Investment Advisor SP Tulsian is of the view that one can remain invested in Tata Steel with long term perspective.

Tulsian told CNBC-TV18, "We have been seeing metal stocks softening in the last 15 days or so because the prices of (hot rolled coils) HR and long products both have fallen by about 22-25%. With the global meltdown even when people are talking of recession in US and Europe, I do not think the prices will really improve. But I think one must understand in its whole perspective when the Indian companies like the Tata Steel or JSW Steel or Steel Authority of India, when the steel market was booming they were not allowed to raise their product prices but now having corrected that I think still the fall may not be that much, the correction or the dip in the topline will not be to that extent of 22-25% which we have seen across the globe probably this companies will be able to maintain their profitability maybe by implementing the cost cutting or improving the captive sourcing of the raw material."

He further added, "Tata Steel is dependent on the imported coal but for iron ore they have the captive source, so I think having corrected to Rs 350 you do not see much downside from here. If you are a trader probably this is the right time to enter into the stock and if you have the investment perspective definitely this seems to be a very good stock to remain invested."

Disclosure: Analyst doesn't hold the above stock.