Metal stocks to buy, sell, hold: JSPL, Shyam Metalics among ICICI Securities’ top picks

“The leading indicators such as money supply (M2), aggregate debt financing, housing starts and new land purchased for construction are still subdued; hence we find the expectations of stimulus immediately post CNY a tad optimistic. We maintain our cautious view on the ferrous space with JSPL (TP: ₹750) and Shyam Metalics (TP: ₹425) as our key picks owing to their long-heavy product portfolios,” the note stated.

Metal stocks to Buy, sell, hold as recommended by ICICI Securities –

Jindal Steel (BUY)

Jindal Stainless (BUY)

SMEL (BUY)

APL Apollo (BUY)

NMDC (ADD)

Tata Steel (HOLD)

SAIL (REDUCE)

JSW Steel (SELL)

Regional producers continue to hike prices for Feb/March 2023 deliveries. As per China Steel Corporation (CSC), the rising prices of iron ore (currently above US$120/te) and coking coal (above US$300/te) have led to higher steelmaking costs for mills, which in turn have lent some support to steel prices, highlighted the brokerage.

“Accordingly, the company has raised its listed price for Feb 2023 deliveries. Nippon Steel has also increased its listed price for HRC by US$50/te to $650/te for Mar 2023 deliveries. As a result, we expect further headroom for Indian steel players to follow suit in the domestic market. That said, owing to uptick in coking coal prices, spreads may be constrained,” the note added.

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