You are right that the profits of Tata Metaliks for the June quarter fell by 35% to Rs.19.62 crore although the total revenues of the company went up by 8% to Rs.503 crore. The sharp fall in profits was largely on account of higher input costs. Tata Metaliks is a subsidiary of Tata Steel and basically manufactures pig iron and ductile iron pipes.

On the NSE, the stock quotes at Rs.580 and is available at a historical P/E Ratio of 8.6X. That is roughly at par with what the sector P/E commands. In the last one year, the price of the stock has corrected more than 20% on higher input cost expectations. However, the stock has traditionally been a strong performer and the current price level offers a compelling entry point. If you are holding on to the stock, you can use lower levels to partially average your cost.