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HomeMarket NewsDipan Mehta positive on steel and airlines, prefers jewellery suppliers over retail
Dipan Mehta, Director at Elixir Equities, said the aviation sector remains attractive, with InterGlobe Aviation (IndiGo) continuing to stand out as a fundamentally strong company despite recent swings in its share price. He pointed to the airline’s sharp gains in market share across both domestic and international routes.
Market expert Dipan Mehta, Director at Elixir Equities, shared his fundamental view on key stocks and sectors, highlighting why domestic-focused businesses with strong industry dynamics continue to offer opportunities for investors.
Mehta believes concerns around Tata Steel’s European operations are gradually fading. While the UK and Europe remain weak, their share in overall revenues and productivity is reducing.
He sees Tata Steel largely as a domestic story now, backed by strong volume growth and its position as one of the lowest-cost steel producers. Mehta also pointed out that steel has been among the weaker commodities in recent times, which could set the stage for better pricing ahead.
Tata Steel shares are currently trading at ₹180.81 as of 10:35 AM on the NSE.
Factors such as rupee depreciation, which limits imports, and continued government support for the steel sector add to the positive outlook. Overall, he expects a possible trading rally across steel stocks and remains constructive on metals as an investment theme.
On aviation, Mehta said InterGlobe Aviation (IndiGo) remains a fundamentally strong business despite recent volatility in the stock price. He highlighted the airline’s unmatched market share gains, both domestically and internationally.
“Crude oil prices and aviation fuel prices are have reduced, and the company has got opened up the entire international travel, international flight, which is a good, great growth driver,” he added.
InterGlobe Aviation shares are currently trading at ₹4,990 as of 10:37 AM on the NSE.
According to Mehta, recent operational challenges appear to be behind the company, and investor sentiment could improve from here.
He feels the stock is fairly valued at current levels and can deliver strong returns over the long term, especially given the scarcity of large-cap companies with such strong growth dynamics.
While most investors focus on retail jewellery names such as Titan, Kalyan Jewellers and Senco Gold, Mehta prefers a different approach.
Sky Gold and Diamonds shares are currently trading at ₹349.00as of 10:39 AM on the NSE.
He highlighted Sky Gold and Diamonds, a small-cap company that supplies inventory to both listed and unlisted jewellery retailers. According to him, the shift towards organised jewellery retail directly benefits such suppliers, as more stores mean higher inventory demand.
Mehta likes the company’s business model because it does not depend on retail success, design risks, or gold price movements in the same way as branded jewellers. With a strong track record and relatively reasonable valuations, he sees the next three to four years as promising for the company, while clearly disclosing his investment bias.
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