Non-ferrous metal companies witnessed ruthless selling pressure over the last six trading sessions. Here's how the major companies performed:
Sterlite Industries: -41.1%
Hindustan Zinc: -38.6%
National Aluminium: -29.9%
In comparison, the decline in the respective non-ferrous metals was as follows:
(source:www.lme.com, updated upto 22-May-06)
The decline in non-ferrous metal scrips seems too fast and too furious, isnt it? But have a look at the performance of these scrips (vis-a-vis the respective commodities) since January this year. The chart says it all. Non-ferrous metal scrips ran too quick and too high!
Where are these companies headed? I do not know. But a colleague (who looks at metals - ferrous and non-ferrous) tells me that Hindalco Industries is most undervalued, compared to its peers. This is on the back of a turnaround in the company's copper business, which incurred losses till the Dec'05 quarter, but is now into the black.