Home / Markets / Stock Markets /  Tata Steel, JSPL shares: Top Indian metal stocks to buy/hold

Brokerage and research firm BOBCaps said that its interactions suggest near-term range-bound aluminium prices but the possibility of upside over the medium term.

Reaffirming its view of continuing recovery in steel margin through FY24, the brokerage said its prefers metal stocks Tata Steel with a target price of 140 and Jindal Steel and Power (JSPL) with a target price of 670.

The brokerage has Buy ratings on Tata Steel and JSPL shares whereas it has Hold stance on Steel Authority of India (SAIL) with a target price of 95, and JSW Steel (JSTL) with a target price of 715.

“Our interactions with the two global majors affirm our view of continuing recovery despite slower CY23 growth in China and higher interest rates in the western world. We retain our constructive outlook on Indian steel sector and continue to prefer TATA (BUY, TP 140) and JSPL (BUY, TP 670)," it said.

Aluminium pricing is likely to remain range-bound in the near term but see an upside over the medium term. Margins for Indian players will depend upon domestic coal availability and international coal prices, BOBCaps highlighted.

Summarising its key takeaways from interactions with ArcelorMittal (MT NA) and Alcoa (AA US), the brokerage said, “Both MT and AA find China’s 5% GDP growth target for CY23 to be soft. While MT believes its base case for steel demand recovery still holds, AA indicated that the government’s focus on improving the economy will support recovery and that the continued thrust on infrastructure spend, renewables and grid development is positive for the aluminium sector."

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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