Is this a good fundamental pick with 3-5 year horizon

Once you are talking about SIP and with a time horizon of 3 to 5 years, I think charts is something to avoid and fundamentals of the company are to be looked into it. So let me share with you fundamentals of the company here.

The first criteria for any fundamental investment is to look at the sales volume which should always be higher. Last 5 years sales number for Tata steel as follows.

41,711.03 38,199.43 33,933.46 29,396.35 25,021.98

So clearly it has gone from 25k Cr sales to 41k Cr sales. So we will get things into more detailed.

The second criteria that I use is about management and of course Tata steel is backed by superior management.

The third criteria is about dividend and how they handle cash. Tata steel has been paying dividend regularly and returning the value to the share holders.

There are few other good points about Tata steel which is they have awesome profit margins as well as they are in metal sector which I think is due an upmove - http://shabbir.in/best-mutual-fund-2015/ . They also have a debt equity ratio under 0.5 and book value of 600+ and EPS of 66 Rs.

So clearly a winner in all fundamental apsects.

The next criteria is too look at the reason for the share price to fall. I see that they have 2% of the company as pledged but then they had 10% as pledged as well and so it is not Something that is too bad.

The only reason I see that this stock has not done well is because EPS of the company has remained at under 70 for 4 years now and Indian market values companies based on EPS and EPS only.

So I think this should be a good stock to be adding into your SIP portfolio if you have view point of at least 5 years.