Best Metal Stocks in India 2024 (2024)

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-

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:

Overview of Metal Stocks in India as per Analyst Ratings

Here is a detailed overview of top metal sector stocksas 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:

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.