Tata Steel, Hindalco, NMDC, Adani: PL Says Buy/Accumulate On Cement, Metal Stocks Amid Election, Stable Prices

The metal prices in India have continued to inch up for the third consecutive week, despite prices remaining flat in leading metal producers like China and Europe. With the ongoing election and stable HRC prices, Prabhudas Lilladher believes that more and smaller hikes can be expected in metals in the coming month. In such a case, Prabhudas has picked Hindalco, Jindal Stainless and JDSL as its top picks. But apart from these three stocks, Prabhudas has also suggested BUY and ACCUMULATE on a host of metal and cement stocks including leading players of Tata Group and Adani Group.

Data from Prabhudas showed that Indian benchmark HRC rose for the third consecutive week to Rs 53,600/t (+0.4% WoW). Spot spread for the week improved 1.3% WoW to Rs 24,607/t.

This is despite the prices of Chinese and European HRC remaining flat WoW to USD 540/t and USD 595/t respectively. Also, spot spreads for the two geographies improved 1% each WoW respectively to USD 145/t and USD 200/t as coking coal prices declined 1% WoW to USD244/t.

Prabhudas also said that non-ferrous metal prices continued to inch up this week & stabilized at higher levels. Alumina spot at USD472/t to benefit domestic players (NACL).

Furthermore, the brokerage cited that ICSG forecasted that World's refined copper production to grow ~2.8% in 2024 and 2.2% in 2025 and refined copper surplus of ~162kt in 2024.

World copper mine production's growth for 2024 has been revised down to 0.5%; primarily attributed to slower project ramp-ups, commissioning delays, and the closure of First Quantum's Cobre Panama mine with a capacity of 380ktpa, it said.

Thereby, in its concluding remark, Prabhudas believes that domestic steel demand remains stable amidst ongoing elections.

It said, "With stable secondary HRC prices, primary steel mills would attempt smaller price hikes in coming months. With stable coking coal prices (USD230-250/t), global steel prices would remain stable aiding domestic companies. Recent higher spreads in China can however lead to an uptick in steel production, exerting pressure on prices. Top picks: HNDL, JSTL and JDSL."

Here are the stocks Prabhudas Lilladher recommended to buy/hold/accumulate/sell/reduce:

1. ACC: BUY for Rs 3,509 target price

2. Ambuja Cement: Hold for Rs 600 target price

Both ACC and Ambuja are part of Adani Group.

3. Dalmia Bharat: Accumulate for Rs 2,077 target price.

4. Hindalco Industries: Buy for Rs 658 target price.

5. Jindal Stainless: Hold for Rs 705 target price.

6. Jindal Steel & Power: Buy for Rs 980 target price.

7. JSW Steel: Buy for Rs 1,017 target price.

8. NALCO: Sell for Rs 141 target price.

9. NMDC: Accumulate for Rs 253 target price.

10. Nuvoco Vistas Corporation: Accumulate for Rs 378 target price.

11. Shree Cement: Buy for Rs 28,966 target price.

12. SAIL: Reduce for Rs 138 target price.

13. Tata Steel: Accumulate for Rs 170 target price. Prabhudas Lilladher has kept its target on this Tata Group stock despite it crossing Rs 170 mark earlier before correcting.

14. Ultratech Cement: Buy for Rs 11,608 target price.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.