Steel stocks to buy: Global brokerage firm Nomura is seeing hopes from the steel sector. Brokerage believes that the product cuts in China, potential incentive package and steel prices in the Indian market firmly can give great support to the stocks of steel companies. Nomura says that the operating profit of the steel shares she is covering can see the growth of 25-27% CAGR during the financial year 2025 to 2028 of the EBITDA.
Trust on jsw steel
Nomura has retained its ‘BUY’ rating on JSW Steel shares and has increased its target price to Rs 1,300. According to the report, brokerage is expected to remain stable of the company’s earnings growth. Apart from this, there will be a large growth driver for capacity expansion and cyclical recovery company in the coming time. Also, the company’s Raw material backward integration strategy gives it a better position than other integrated players.
Nomura has also maintained the rating of its ‘Buy’ on Jindal Steel and Power Limited (JSPL) and has fixed a target price of Rs 1,150 for this. Brokerage said that the company’s new capacity increase will increase the share of flat products in the volume mix. Also, the cost will decrease after the commencement of captive power and pellet plants, which can strengthen margin performance.
According to the target price of Nomura, investors can get up to 16 per cent returns in both these steel stocks. After this report of Nomura, on Tuesday, the Nifty Metal Index witnessed a jump of about 1 per cent.
Streets were seen in shares
JSW Steel shares closed at Rs 1,137.90 with a rise of 1.87 per cent on NSE on Tuesday. So far this year, the stock of this company has increased by about 25.6 percent. At the same time, the shares of Jindal Steel (JSPL) saw a rise of 3 per cent and it closed at Rs 1,063.50. The stock has gained around 13.3 percent so far this year. Both these shares have outperfined the Sensex and Nifty.
Overall, Nomura believes that the steel sector can give attractive returns to investors in the coming years, especially in top pics like JSW Steel and JSPL.
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