The stocks of DLF and Jindal Steel have been badly beaten down ever since these companies ran into regulatory issues.
In DLF there were rumors that the new state government in Haryana would open up-cases involving land deals between DLF and Robert Vadra. Now, DLF has huge parcels of land in Haryana and if the rumors hold true, it's not good news for India's largest real estate company.

It's been an unending misery for DLF.

What's happening in Jindal Steel?

Jindal Steel has had problems of its own. The Central Bureau of Investigation (CBI) last week registered a Preliminary Investigation against the Naveen Jindal-led Jindal Steel and some unidentified officials in the ministry of environment and forests in connection with diversion of forest land for mining between 2007 and 2013.

Earlier, the Supreme Court decision on mining blocks badly affected the stock and the company is likely to lose money running into several 100 crores.

Should you buy Jindal Steel now?

Many analysts suggest that the worries over losses in the coal block decision could affect the company, though this may now be reflected in the share price. The stock has fallen from a 52-week high level of Rs 350 to the current level of Rs 150. The stock has now almost halved in value in the last few months. Analysts feel that Jindal Steel maybe an attractive bet at the current levels, if one wants to hold for a year or two. The company has got robust expansion plans and the likely EPS for 2015-16 could be around Rs 25, resulting in a p/e of just 5 times. The stock could make an interesting buy at the current levels.

What about DLF?

DLF is a strict "no" as far as analysts are concerned. The real estate business can always tend to open-up a can of worms, especially in dealings. The company is also saddled with huge debts and no access to the capital markets by SEBI may pose serious worries for the stock. It's best to stay away from the stock at the moment.

GoodReturns.in