Metals & Mining Shares: From Tata Steel to Coal India — HSBC lists stocks to buy, hold or reduce

Metals Stocks To Buy: The metals and mining sector saw focused attention on November 20 as HSBC initiated coverage on several major companies with a broadly constructive view.

The BSE Metal index traded almost flat during the session, supported by mild gains in stocks like Hindalco, NALCO, JSW Steel and Jindal Steel, while counters such as SAIL, NMDC and Welspun Corp came under pressure.

HSBC said the sector is entering a phase where operational improvements, easing global pressures and stabilising commodity prices could support performance for select players.

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The brokerage released its initial views and target prices across aluminium, steel, zinc and mining companies.

Hindalco Share Price Target

Hindalco was among HSBC’s top picks. The brokerage initiated a Buy rating for Rs 791, setting a target of Rs 980. HSBC believes that the impact of setbacks at Novelis—Hindalco’s US subsidiary—will begin to fade from FY27, supporting earnings recovery and margin growth.

NALCO Share Price Target

NALCO also received a Buy rating at Rs 257 with a target of Rs 291, with the brokerage expecting the company to benefit from improved operational trends.

Tata Steel Share Price Target

Tata Steel was another metal major to receive a Buy rating. HSBC set a target price of Rs 215 against the current market price of around Rs 173. The brokerage expects European losses to ease, supporting consolidated financials over the next few years.

Hindustan Zinc Share Price Target

In the non-ferrous segment, Hindustan Zinc was assigned a Hold rating with a target of Rs 470. HSBC said it likes the company’s exposure to zinc and silver but added that the stock is trading at a rich valuation, with a 10.3x EV/EBITDA multiple.

Coal India Share Price Target

Coal India also received a Hold rating, with HSBC setting a target of Rs 374 compared with the current price near Rs 379. The brokerage maintained a neutral stance on the stock, citing limited near-term triggers.

SAIL Share Price Target

Meanwhile, SAIL was given a Reduce rating with a target of Rs 114, as HSBC expects pressure on margins and muted volume growth.

NMDC Share Price Target

NMDC was also rated Reduce, with a sharply lower target price of Rs 59 versus the current level of Rs 75.

HSBC highlighted concerns over low profitability and rising capital expenditure, which may restrict near-term performance.