Best Metal Stocks in India
(The stocks mentioned in the blog are as per Analyst Ratings and Market Capitalization)
As India experiences a surge in industrial and infrastructural growth, there is a significant increase in the demand for metals such as steel, copper, aluminium and various others.
Metals are crucial in many industries like manufacturing, construction and building roads and bridges, which are all important for the world's economy.
Metal Industry in India - A Brief Overview
Over the years, the metal sector in India has experienced remarkable growth, establishing itself as a significant global player in terms of production.
Its advantageous geographical location helps the nation to sell these products to other countries, especially in Asia where markets are growing rapidly. In 2022, India had approximately 1,425 mines, where around 525 mines were for metals.
India’s metal industry provides significant investment opportunities, supported by the National Mineral Policy 2019 and the Mines and Minerals (Development and Regulation) Amendment Act 2021. The country has substantial reserves of bauxite, iron ore, manganese ore, chromium and other rare minerals. The sector is set for reform driven by various initiatives like Smart Cities, Make in India, Rural Electrification and National Electricity Policy renewable energy projects.
Today, the metal industry is very crucial for the economy. It helps in manufacturing and building things, adding to the country's GDP, creating jobs and boosting India's foreign exchange reserves by selling metals to other countries.
Given the abundant availability of minerals in the country, the metal sector plays a vital role in making India self-reliant and attaining a USD 5 trillion economy by 2024-25. Furthermore, according to a report, the India Metal Fabrication Market is valued at approximately USD 20.89 billion in 2023 and is projected to reach around USD 28.46 billion by 2028.
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Best Metal Stocks in India 2024 as per Analyst Ratings
The following table mentions the best metal stocks in India in 2024 as per analyst ratings. We have chosen analyst rating analyst ratings provided by the I/B/E/S database as a criterion to list the stocks because stock market analysts rate a stock after a thorough market study.
Now, let’s have a look at the list-
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S.No. |
Metal Stocks in India (as per analyst ratings) |
BUY Analyst Rating (in %) |
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1. |
100 |
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2. |
96 |
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3. |
82 |
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4. |
81 |
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5. |
75 |
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*Our stock selection criteria for top stocks based on analyst ratings are mentioned at the bottom of this blog. |
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Top Metal Stocks in India in 2024 as per Market Capitalisation
Here is a table outlining the top metal stocks list in 2024 as per market capitalisation:
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S.No. |
Metal Stocks in India (as per market capitalisation) |
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1. |
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2. |
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3. |
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4. |
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5. |
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*Our stock selection criteria for top stocks based on Market Capitalisation are mentioned at the bottom of this blog. |
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Overview of Metal Stocks in India as per Analyst Ratings
Here is a detailed overview of top metal sector stocks as per analyst ratings in 2024:
1) Jindal Stainless
Jindal Stainless is one of the leading stainless steel manufacturing companies in India. The company has 2 manufacturing units located in Haryana and Odisha. It provides stainless steel in the 200, 300 and 400 series. Additionally, the company also provides duplex stainless steel products. Its product line-up includes slabs, blooms, plates, Hot Rolled (HR) coils, Cold Rolled (CR) coils and other speciality products.
This company is present worldwide in around 15 countries and also has one service centre in Spain. Jindal Stainless reached an annual melt capacity of 3 million tonnes in 2024. By 2035, it aims to lower the intensity of carbon emissions by 50%. Moreover, the company also aims to achieve net zero by 2050.
2) Hindalco
A subsidiary of Aditya Birla Management Corporation Private Limited, Hindalco Industries Limited (Hindalco) is a renowned aluminium and copper manufacturer in India. It operates in 4 segments - Novelis, Aluminium Upstream, Aluminium Downstream and Copper.
Under the Aluminium segment, Hindalco produces products that are used for building and construction, automotive and transport, industrial applications, electrical and electronics, pharmaceuticals and packaging, etc. Its copper segment produces products for consumer durables, agrochemicals, electrical equipment, railways, wire and cable industry and automotive and transport. The chemicals it produces are used for ceramics and refractories.
Hindalco also produces by-products like silver, gold and DAP fertilisers. The company is one of India’s largest producers of private gold in India. Moreover, the company is engaged in resource mining, alumina refining, aluminium smelting, copper smelting, and research and development.
3) NMDC
Established in 1958, National Mineral Development Corporation (NMDC) is India’s biggest producer of iron ore in India. Registered in Hyderabad, NMDC mainly operates in mines located in Chattisgarh and Karnataka. The company is involved in providing a wide range of minerals such as limestone, copper, rock phosphate, tungsten, beach sands, etc.
NMDC has 4 iron-ore operating mines - Bailadila Iron Ore Mine (Kirandul Complex), Bailadila Iron Ore Mines (Bacheli Complex), Kumaraswamy Iron Ore Mine and Donimalai Iron Ore Mine. It also has a diamond mine located in Panna, Madhya Pradesh. The company also has its operating units in Africa and Australia.
NMDC has an iron ore-producing capacity of more than 40 million tonnes annually and aims to reach 100 million tonnes annually by 2030.
4) Tata Steel
Headquartered in Mumbai, Tata Steel Limited is an Indian steel manufacturing company established in 1907. It has a capacity to produce 34 million tonnes of steel annually. The company operates in 4 segments: industrial products, projects and exports segment, automotive and special products segment, branded products and retail segment and services and solutions segment.
It also provides galvanised steel, hot-rolled, cold-rolled, high-tensile steel strapping, tubes, wire rods, rebars, branded solutions and more. The company’s product brands consist of Tata Structura, Tata KOSH, Tata Steelium, Ferromag, Galvano, Tata Precision Tubes and more. Tata Steel also has manufacturing units in the Netherlands, the UK, Canada, France, Germany, Belgium, Turkey and Sweden.
5) APL Apollo Tubes
Located in Delhi NCR, APL Apollo Tubes is one of India’s largest producers of structural steel tubes. It boasts a capacity to manufacture structural steel tubes of around 3.6 million tonnes per annum.
The company offers a wide range of products encompassing over 1,100 variations, such as pre-galvanized tubes, galvanized tubes, structural steel tubes, MS black pipes, hollow sections and more. These products are marketed under numerous brands, including Apollo Build, Apollo Signature, Apollo Fireready, Apollo RoofTuff, Apollo Reflector, and many others.
The applications of these products are diverse, ranging from firefighting, metros, railings, greenhouse structures, solar panels, agricultural sectors, furniture manufacturing, balcony grills, sheds, plumbing and more. It has around 11 manufacturing units and is present in 20 countries worldwide.
Factors to Consider Before Investing in Metal Stocks in India
The following are the factors you must consider before investing in metal stocks in India:
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Technical Analysis
When considering investment opportunities, pay attention to technical indicators. You must evaluate factors like moving averages, support and resistance levels for each stock to make informed investment decisions.
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Policy Considerations
You must stay informed about government policies that can impact the prices of metals. Customs duty, export duty and production incentives are among the policy measures that can influence the metal market.
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Financial Evaluation
Before investing in India’s metal sector stocks, you should carefully assess its financial health performance. You must check their balance sheet and cash flow statement to understand aspects like debt levels, promoter share pledges, etc.
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Raw Material Factors
Check the availability and prices of raw materials, as they are crucial for a metal company's finances. It will also affect how the stock is valued.
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Economic Factors
Keep an eye on global economic factors such as inflation, interest rates and political stability, as these can influence the performance of metal stocks. You must understand how these factors might affect both companies and the industry.
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Global Market Dynamics
Stay updated on international trends as metal prices in India are linked closely to global markets, particularly the London Stock Exchange. Changes in international metal prices can have a significant impact on the metal stocks.
Should You Invest in Metal Stocks?
While investing in metal stocks presents an opportunity for long-term capital appreciation, it comes with its fair share of challenges and fluctuations. These challenges include volatility in metal prices, market competition, global economic conditions, geopolitical factors and currency fluctuations.
Therefore, it is crucial to conduct thorough research on the specific companies you are considering for your portfolio before investing in metal stocks.
The Bottom Line
Buying metal stocks can be a good way to grow your investment portfolio and benefit from the economic growth of the country.
Before buying these stocks, keep in mind the above-mentioned essential factors. You should make informed investment decisions that align with your financial objectives only after proper evaluation. Furthermore, if you face any issues or need guidance while investing, do not hesitate to consult a financial advisor who can provide personalised insights tailored to your investment goals.
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*Stock Selection Criteria for Top Stocks Based on Analyst Rating Investors must carefully read through the following information on stock selection criteria while running through the stocks based on analyst ratings- These stocks have been shortlisted as per Analyst ratings provided by the I/B/E/S (The Institutional Broker’s Estimate System) database, further aggregated by Refinitiv. Ratings are determined by analysts' forecasts of company performance, taking into account metrics like earnings per share, sales, and net income. These ratings should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.). Before investing, investors must conduct independent research and not solely rely on the information provided here. This will allow investors to make appropriate investment decisions based on their financial goals, investment objectives and risk tolerance. |
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*Stock Selection Criteria for Top Stocks Based on Market Capitalisation These stocks are chosen based on their market capitalization, which represents the total value of a company's outstanding shares. The selection is arranged in descending order, placing the largest companies first and the smaller ones later. This helps prioritize stocks based on their market size. It is important to note that market capitalization in no way guarantees a company’s performance or the returns from its stocks. However, it can be used as a criterion for shortlisting companies from within a sector. Investors should recognize that other factors, such as financial health, management efficiency, and market trends, play crucial roles in determining the actual success of an investment. This stock selection should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.). |
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Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory. To read the RA disclaimer, please click here |