“There will be volatility in the metal space because of the current China lockdown but if one looks at their valuations and mid-cycle positioning, Jindal Steel and Power is trading three times EV/EBITDA; Tata Steel probably at about four times EV/EBITDA and Hindalco about five times. For the medium term investor clearly there is a lot of upside for the metal stocks. In the case of auto, the sum-of-the-parts story really holds value for M&M and it can go much higher over time.”
