Can we build an investment case?
The sharp correction in the price of metal stocks has once again raised the subject of cheap valuations. The theorists may have a valid point from a valuation standpoint. Most stocks like Hindalco, Tata Steel, SAIL and Vedanta have corrected by 50-60% from their peak prices. This has probably made these stocks attractive in dividend yield terms too. But any investor needs to be cautious about 4 factors before jumping into metal stocks. Here is why…
