Mehta Bullish on Steel, IndiGo; Prefers Jewellery Suppliers Over Retail

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AuthorIshaan Verma|Published at:
Mehta Bullish on Steel, IndiGo; Prefers Jewellery Suppliers Over Retail
Overview

Market expert Dipan Mehta sees strong prospects for Tata Steel and InterGlobe Aviation (IndiGo), citing domestic strength, cost advantages, and market share gains. He favors jewellery supplier Sky Gold and Diamonds over prominent retail chains, highlighting its robust business model benefiting from the organized retail shift. Mehta remains constructive on metals and aviation as investment themes.

Market expert Dipan Mehta has signaled a bullish stance on India's steel and aviation sectors, while advising investors to look beyond major retail jewellery brands toward suppliers. Mehta, Director at Elixir Equities, identified domestic business strengths and favorable industry dynamics as key opportunities.

Steel Sector Focus

Mehta sees Tata Steel largely as a domestic story now, with concerns over its European operations fading. He highlighted its strong volume growth, cost leadership, and potential for improved pricing as steel commodities face headwinds. Shares of Tata Steel traded at ₹180.81 on the NSE.

Supporting Factors

Rupee depreciation, which curbs imports, and continued government support add to the positive outlook for steel. Mehta expects a trading rally across steel stocks, viewing metals as an attractive investment theme.

Aviation's Resilience

InterGlobe Aviation (IndiGo) remains a fundamentally robust business, according to Mehta, despite recent stock volatility. The airline's unmatched domestic and international market share gains are significant growth drivers.

Catalysts for Airlines

Reduced crude oil and aviation fuel prices, coupled with the reopening of international travel, are favorable factors. InterGlobe Aviation shares were priced at ₹4,990 on the NSE. Mehta believes recent operational challenges are behind the company, positioning it for investor sentiment improvement.

Jewellery Supply Chain

In the jewellery space, Mehta prefers Sky Gold and Diamonds over retail names like Titan, Kalyan Jewellers, and Senco Gold. This small-cap company supplies inventory to various jewellery retailers. Sky Gold and Diamonds shares traded at ₹349.00 on the NSE.

Supplier Advantage

Mehta highlighted that this supplier model benefits directly from the shift to organized jewellery retail, as more stores increase inventory demand. Its business model is less exposed to retail risks, design challenges, or gold price swings impacting branded jewellers. He anticipates a promising future for the company over the next three to four years.

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