Stocks to buy today: Steel stocks are on fire these days. In the past one month, the share price of steel major Steel Authority of India Ltd or SAIL has risen by around 11.50 per cent, Shyam Metaliks shares have gained 18 per cent, while the share price of Tata Steel has increased over the same period. an increase of more than 5 percent. , The share price of JSW Steel has risen nearly 14 per cent in the last one month. Hence, most of the quality steel companies in India have given great returns to their shareholders.
according to this Share Market According to experts, the demand for steel has increased in the post-pandemic period, while the supply of the metal has further contracted, creating a demand-supply constraint for metal companies. In addition, the recent Russia-Ukraine crisis has worsened steel supplies for steelmakers globally. Since Indian companies have buffer stock of the metal, the market is expecting strong quarterly numbers from steel manufacturing companies. They are expecting this to be a win-win situation for export-oriented steelmakers as Indian companies operate at the lower end of the global cost curve due to lower labor and iron ore costs compared to other countries.
Throwing light on the reasons for the rise in steel stocks in India; Santosh Meena, Head of Research, Swastika Investmart Ltd. said, “There has been a steel shortage after the pandemic, which has skyrocketed steel prices due to supply chain disruptions; this has been further exacerbated by the Ukraine war. This will ensure That steel prices are going to remain elevated in the medium term, thus improving profitability of steel companies. Domestic steel companies are well positioned to benefit from multi-year higher prices due to structural benefits as they cross the global cost curve because of lower labor and iron ore costs than other countries.”
Santosh Meena said that China is on a serious path of decarbonization and is focusing on reducing steel production and exports, providing a good incentive for domestic companies to participate in the growing global export opportunity, another focus Worth mentioning is that Indian steel demand is on the rise due to the revival of infrastructure, construction and manufacturing sector, thus leading to a new economic and commodity development cycle for India.
Strong quarterly numbers expected from steelmakers; Ravi Singhal, Vice Chairman, GCL Securities said, “Indian companies are expected to get better business in the international market due to the rise in steel prices as labor and raw material costs are lower as compared to global counterparts. Hence, export-oriented. May be steel makers. Give strong numbers in upcoming results session.”
When asked about the steel stocks that one can look to buy in the current market scenario; Ravi Singhal of GCL Securities said that if one is looking to buy steel stocks then SAIL, Tata Steel, JSW Steel can be a better option.
Batting in favor of Jindal Steel Shares; Santosh Meena, Swastika Investmart said, “Jindal Steel & Power can be a good stock to ride the steel commodity bull run. With good growth visibility, the company has lowest in equity ratio, backward integration and capacity expansion in the industry. Net debt. Make this company a good buy on CMP.” He said Jindal Steel is in strong bullish momentum and it is continuing this momentum and thereafter the stock may move further northwards after formation of a bullish flag.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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