Jindal Steel, Tata Steel, NMDC shares: Top Indian metal stocks to buy, sell or hold
1 min read . Updated: 19 Mar 2023, 11:31 AM IST
Premium- Besides, improving spreads and stable prices in India, the brokerage remains positive on improving demand outlook in China
Domestic brokerage and research firm ICICI Securities highlighted that in China, both rebar and hot rolled coil (HRC) inventories have declined. Despite the rise in prices, profitability is still below the 50th percentile of the past 15-year period, hence, the brokerage said there could be further hike in prices.
Furthermore, the financing data for both Jan-23 and Feb-23 is better than estimates, hence, the brokerage sees a better possibility of demand picking up.
After remaining circumspect on the sector for the past five months, the brokerage turns optimistic again largely driven by the visible signs of improving demand in China.
Besides, improving spreads and stable prices in India, the brokerage remains positive on improving demand outlook in China.
“As a result, we turn optimistic on ferrous space with JSPL (Target Price: ₹750) and Shyam Metalics (Target Price: ₹570) as our key picks. We also prefer Tata Steel (ADD; Target Price: ₹120) and APL Apollo (BUY; Target Price: ₹1,375)," it said.
Here are the metal stocks to buy, sell, add as recommended by ICICI Securities:
Jindal Steel (BUY)
Jindal Stainless (BUY)
SMEL (BUY)
APL Apollo (BUY)
NMDC (ADD)
Tata Steel (ADD)
SAIL (REDUCE)
JSW Steel (SELL)
"HRC prices in traders' market have sustained at ₹60,000/te for third week in a row on positive global cues and signs of demand revival in China. Spot spread was aided by coking coal price dropping to US$322/te. Rebar-HRC premium has contracted further to ₹1,740/te- lowest since Nov-22 owing to firm global HRC prices. Indian export price was up US$8/te WoW driven by better realisations in Europe and UAE and stable domestic prices" the note said.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.