Tata Steel Ltd. has become the most attractive bet among peers after metal stocks declined anywhere between 7 percent and 17 percent last month on falling prices in China, the world's largest steel producer.
Nearly 25 of the 30 analysts tracked by Bloomberg currently have a ‘buy' rating on the stock, with an implied potential upside of 39 percent – the highest in the ferrous pack. Moreover, the stock is available at relatively cheaper valuation compared with others.
Broking and research firm Macquire said Tata Steel's robust domestic fundamentals make it a good bet. The risk associated with its aggressive bidding for Bhushan Steel Ltd. and Bhushan Power & Steel Ltd. seems to be well priced in the current market value of the stock, the brokerage said.
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