Metal stocks with up to 23% upside: JSW Steel, Vedanta among 6 top picks by Motilal Oswal, JPMorgan and others

Brokerages remain largely positive on metal stocks, with firm domestic prices and improving global cues supporting earnings outlook, according to recent reports by Macquarie, Morgan Stanley, HSBC, JPMorgan and Motilal Oswal.

Macquarie said firm metal prices in the March quarter are expected to support EBITDA, while it continues to prefer ferrous stocks. HSBC also noted that domestic steel prices have seen multiple hikes and are likely to remain stable at current levels.

Below is a stock-wise break-up of brokerage views and implied upside or downside based on the latest market prices.

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Tata Steel Share Price Target

Shares of Tata Steel settled at Rs 206.85 on Friday.

Macquarie maintained an “Outperform” rating and raised the target price to Rs 241, indicating an upside of around 16.5 per cent. HSBC retained a “Buy” rating with a target of Rs 250, implying an upside of about 20.9 per cent.

Motilal Oswal also maintained a “Buy” rating with a target of Rs 240, suggesting a potential gain of around 16 per cent.

Brokerages said strong domestic prices and a stable demand environment are likely to support earnings going ahead.

JSW Steel Share Price Target

Shares of JSW Steel settled at Rs 1,212 on Friday.

Macquarie maintained “Outperform” with a target of Rs 1,353, indicating an upside of about 11.6 per cent. Morgan Stanley retained “Overweight” with a target of Rs 1,330, implying a gain of around 9.7 per cent.

Motilal Oswal has a “Buy” rating with a target of Rs 1,360, suggesting an upside of about 12.2 per cent.

Morgan Stanley said production was impacted due to a blast furnace shutdown at Vijayanagar, but added that sales volumes may improve with inventory destocking.

SAIL Share Price Target

Shares of Steel Authority of India Limited (SAIL) settled at Rs 166 on Friday.

HSBC maintained a “Hold” rating with a target of Rs 150, implying a downside of around 9.6 per cent. In contrast, Motilal Oswal has a “Buy” rating with a target of Rs 170, indicating a modest upside of about 2.4 per cent.

HSBC said higher spot steel prices could support earnings, though further price hikes may be limited.

Coal India Share Price Target

Shares of Coal India Limited settled at Rs 435.3 on Friday.

Macquarie maintained a “Neutral” rating with a target of Rs 445, suggesting a limited upside of around 2.2 per cent. Motilal Oswal has a “Buy” rating with a target of Rs 535, indicating a potential upside of about 22.9 per cent.

Macquarie said the neutral stance reflects limited upside after recent stock outperformance.

Vedanta Share Price Target

Shares of Vedanta Limited settled at Rs 745.5 on Friday.

JPMorgan upgraded the stock to “Overweight” with a target of Rs 850, implying an upside of around 14 per cent. Motilal Oswal maintained a “Neutral” rating with a target of Rs 750, suggesting a marginal upside of about 0.6 per cent.

JPMorgan said higher aluminium prices and favourable currency movements are likely to support earnings, while valuations have turned attractive.

Jindal Stainless Share Price Target

Shares of Jindal Stainless Limited settled at Rs 782 on Friday. Motilal Oswal maintained a “Buy” rating with a target of Rs 900, indicating an upside of around 15.1 per cent.

Sector View

Brokerages said domestic steel prices remain firm, supported by multiple price hikes in March and April. HSBC said prices are expected to hold near current levels, with no meaningful decline seen in the near term.

JPMorgan highlighted that aluminium prices have strengthened due to supply disruptions and smelter outages, which could last for months. It added that earnings for companies like Hindalco Industries and Vedanta Limited are likely to improve in FY27.