The Nifty Metal index rose over 1% in early deals on Friday, while metal stocks were the top gainers today, with benchmark Sensex and Nifty down nearly 0.5%. Among individual metal stocks, SAIL, Jindal Steel, JSW Steel and Tata Steel were trading higher by over 3%.
Domestic brokerage and research firm ICICI Securities maintains rating low metal stock Tata Steel (TP: 827), Cell (TP: 61), JSW Steel (TP: 448), NMDC (TP: 98), JSPL (TP: 290). APL remains Apollo top stock picks In the metal sector, more buy tags are maintained while Jindal Stainless and Shyam Metallics have retained their hold.
APL Apollo is one of the major beneficiaries of steel export duty. Sharp fall in steel prices is expected to dent EBITDA print in Q1 FY23, through inventory loss and volume impact on account of industry destocking, what will be the impact on Q2/Q3FY23 for APL, HRC There is a continuous decline in prices of the commodity, which gives rise to periodic destocking impulses. This prompts us to lower our FY23/24E volume estimates for APL Apollo. We maintain a BUY on the stock with a revised target price of 1,042/share,” the note said.
It has maintained a cut on Hindalco, while downgrading Nalco from reduce to sell. According to ICICI Securities, Hindalco is feeling the potential pinch of aluminum returning to surplus (from losses) during FY 2013/24E, as well as trading instruments facing rising interest rate environment and possible compression in Novelis margins. is facing.
“In China, the fresh lockdown has thwarted any hope of recovery. Regional prices continue to decline and FOB prices are in the range of USD700-750/t. The situation is further exacerbated by macro risks. We maintain a cautious stance on the iron sector with Shyam Metallics (TP: ). 353 as the only ‘buy’ in the space,” said another brokerage Edelweiss.
Meanwhile, Edelweiss has received a ‘HOLD’ rating on Tata Steel with a target price of Rs. 985 and JSPL (TP: 385) and ‘Reduce’ at JSW Steel (TP: 471) and Cell (TP: 57).
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.