Sanju Verma, ED & Head of Institutional Business, HDFC Securities is of the view that one can buy Tata Steel with a long term perspective.

Verma told CNBC-TV18, "Steel is hurting and I think it has to do with a couple of factors, one is input cost which has gone up anywhere between 50% to even 200%. The price of coking coal has gone up from USD 90 March last year to something like more than USD 300 as we speak and the fact that for a tonne of steel you need 0.65 tonne of coking coal that is self explanatory that a rise in input cost can hurt steel majors significantly. The other thing is that the employee cost seems to have gone up significantly, a classic case being JSW where the employee costs went up by more than 100% and ate into whatever the company made by way of margins at an operating level."

She further added, "The more importantly the other interesting thing to notice that while there are companies, which will continue to underperforms because of government activism because of rise in input cost because of the supply-demand dynamics as things pan out somebody like a Tata Steel is going to buck the trend."

"If one look at a Tata Steel, JSW and a SAIL; JSW and SAIL are trading at anywhere between 8 times to even 9 times one year forward EPS whereas Tata Steel, hanks to the way the stock has been hammered in the last couple of weeks, is today available at less than 7 times one year forward EPS. So on the valuation front, it is core hands down. Also it is not going to be affected by government intervention because more than 70% of the revenues in a consolidated form post the Corus merger come from international operations."

"The other interesting thing is that product prices will continue to move up and our personal sense is that a 5% increase in product prices will positively benefit Tata Steel, other things remaining same to the tune of anywhere between 30-35%. Given the huge operating leverage, which Tata Steel enjoys despite the fact that integration levels are today less than 20% post the Corus merger I think given the positives particularly on the valuation front Tata Steel is something which could certainly be bought for investors who are looking to buy it for the long haul."