Emkay Global, in a recent note on the metals and mining sector, said the market
expects steel prices to rise, with an increase of ₹3,000 per tonne already
factored into stock estimates. The firm believes the current downturn in steel
is temporary but warned that if prices stay low for a long time, earnings could
fall sharply.
For non-ferrous metals, Emkay said the market has already accounted for lower
commodity prices, which are 7.5% lower for Hindalco, 5.2% lower for Vedanta,
and 3% lower for Nalco. Overall, aluminium stocks may see gains, while steel
stocks may face losses if conditions continue.
Among metals and mining shares, Emkay gave a ‘Buy’ rating to Hindalco, Vedanta,
Nalco, Tata Steel, and Gravita India. It gave an ‘Add’ rating to JSW Steel and
Coal India.