Tata Steel, JSW Steel, and Hindalco gained up to 2% on the BSE today after global brokerage firm Jefferies reaffirmed its positive outlook on the Indian metals sector, highlighting these stocks as top picks.

Jefferies raised Tata Steel’s target price to Rs 180 from Rs 165, while revising JSW Steel’s target price to Rs 920 from Rs 850 but maintained a ‘Hold’ rating. Despite considering steel stocks expensive, Jefferies believes their valuations could remain stable, citing a 20% below-average Asian steel spread with potential for expansion. Indian steel prices are up 4% from December’s low, and safeguard duties should further support margins and valuations.

Jefferies kept Hindalco’s target price at Rs 800, noting that aluminum prices are stable and the company’s valuation appears reasonable, with a 13% return on equity (ROE) projected.

In response, Tata Steel and Hindalco shares rose 1.7% each to Rs 154.20 and Rs 703.20, respectively, while JSW Steel surged 1.6% to Rs 1,028.15.

Jefferies also highlighted that the recovery in steel prices and potential safeguard duties could enhance profit margins and valuations for domestic steel producers.

In a separate note, Emkay Global raised concerns about earnings expectations for the sector, noting that slower price recoveries and project delays could impact performance. However, they indicated that safeguard duties could reverse India’s steel import trends.

Meanwhile, JM Financial remained bullish on Hindalco, predicting stable LME aluminum prices and strong demand for Novelis in 2025, particularly in the beverage can sector. They see Hindalco as a solid play in aluminum, driven by robust earnings visibility for the next six months.

Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

Source: News 18

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