Buy 3 Metal Sector stocks Including 2 Multibagger Stocks For Gains Up To 46%, Says ICICI Securities

Leading brokerage firm ICICI Securities in its recent report on the Metal sector maintains its cautious view on Jindal Steel & Power Limited, and Shyam Metalics & Energy Limited as its key picks. Also, the brokerage positive on APL Apollo Tubes Limited. The brokerage recommends "buy" these 3 stocks, sees a potential gain of up to 46%.

The brokerage in the report stated, HRC prices in traders' market during the week ended 15th Dec'22 were down by a further Rs350/te WoW on an average. However, rebar in both primary and secondary markets rose slightly owing to gradual pick-up in infrastructure demand. Regional prices however rose by US$10-15/te on price hikes taken by the major players on optimism around demand pick-up in China post relaxation of covid-related restrictions. As a consequence, India HRC export prices also rose by US$25/te WoW.

It said, "Going ahead, we expect domestic flat steel players to be at a disadvantage compared to longs players owing to unfavourable price parity with imports, lean domestic demand and export prices continuing to stay at discount with respect to domestic realisation."

1. Jindal Steel & Power Limited (JSPL)

JSPL is a mid-cap Meatal sector company having a dominant presence in the steel, power, mining and infrastructure sectors. It has a market capitalisation of Rs 55,380.58 crore. 

JSPL is one of the key picks by ICICI Securities. The brokerage recommends buy the stock with a target price of Rs 605/share. 

According to the given target price and the current market price of the stock, it could give a return of up to 12% on the investments. 

On Friday, 16 December, the stock last traded at Rs 542.90/share, up 0.13%. Its 52 week high is Rs 577.80 and its 52 week low is Rs 304.20, respectively. 

It has given 5.54% positive returns in the last 1 month, and 24.58% positive returns in the last 3 months, respectively. In the last 1 year, it has given 37.44% positive returns. In 3 and 5 years, it has given 297% and 229.13% multibagger returns. 

2. Shyam Metalics & Energy Limited

Shyam Metalics is a leading integrated metal-producing company based in India mainly steel Industry in West Bengal and the steel industry in Odisha with a focus on Long Steel Products and Ferro Alloys. It is a small-cap metal sector having a market capitalisation of Rs 7,426.67 crore. 

Shyam Metalics is a key pick for investments by ICICI Securities, suggesting "buy" for a target price of Rs 425/share. 

Considering the given target price, the brokerage claims a potential upside in the share price of up to 46% if the stock is purchased at the current market price.

The stock on NSE last traded at Rs 291.15/share, down 0.56%. Its recorded 52 week high is 385.50 and its 52 week low is Rs 273.10, respectively. 

The stock made its debut on the stock exchange on 24 June 2021, and since it has declined 22.6%. In the last 1 and 3 months, it declined by 3.01% and 2.17%, respectively. Over the last 1 year, it has declined by 9.26%. 

3. APL Apollo Tubes Limited

APL Apollo Tubes Limited is India's top producer of structural steel tubes, with an annual production capacity of 2.6 million tonnes. It is a mid cap metal sector company with a market capitalisation of Rs 27,908.78 crore. 

ICICI Securities maintains its positive outlook on APL Apollo, suggesting a buy with a target price of Rs 1,225/share. It claims a potential return of up to 10% if the stock is purchased at the current market price. 

The current market price of the stock on NSE is Rs 1,115.10/share, down 3.50%. The stock recorded its fresh 52 week high at Rs 770.90 on 5 December 2022, while its 52 week low is Rs 1,193, respectively.

It is a multibagger stock, given 573.98% return in the last 3 years and 482..57% returns in the last 5 years, respectively. In the last 1 week, it fell by 4.38%. in the last 1 month it grew by 2.43%, and in the last 1 year it grew by 4.09%, respectively.

Disclaimer

The stocks have been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.