Metal Stocks Shine: Tata Steel, SAIL offer up to 25% upside; JSW Steel faces 18% downside - Check targets

Metal Stocks Today: Metal stocks extended their rally on Monday, lifting the Nifty Metal index by 1.16 per cent to 10,467.15, as investors turned optimistic on the sector amid steady steel prices, a potential European demand revival, and policy-driven protectionism in India.

While analysts see selective opportunities in Tata Steel and SAIL, valuations for JSW Steel are flashing caution signals due to unrealistic earnings expectations.

Broader Market Moves

At the stock level, Welspun Corp (+4.41 per cent ), Jindal Steel & Power (+2.16 per cent ), and Hindalco Industries (+1.99 per cent ) led the rally, supported by strong buying in base metal counters.

Vedanta (+1.87 per cent), Tata Steel (+1.24 per cent), Hindustan Copper (+1.17 per cent), and National Aluminium (+0.93 per cent) also advanced.

Among large caps, JSW Steel (+0.56 per cent ) and SAIL (+0.37 per cent ) traded in the green, while Adani Enterprises, Hindustan Zinc, and Lloyds Metals witnessed mild profit booking.

According to a recent report by InCred Equities, the outlook for metal stocks remains mixed, with select opportunities for upside while one heavyweight faces valuation pressure.

JSW Steel Share Price Target

Analysts remain cautious, citing “beyond comprehension” valuations. The stock trades at nearly 4x FY26 book value, far above typical levels for a cyclical business.

Despite strong execution and a Rs 76,000 crore capex pipeline, high leverage (over 75 per cent ) and overambitious earnings forecasts raise concerns.

InCred has set a target price of Rs 939, implying an 18 per cent downside from current levels around Rs 1,148. The rating remains Reduce.

Tata Steel Share Price Target

InCred has turned positive on Tata Steel, upgrading it to ‘ADD’ with a target of Rs 224, suggesting an 18 per cent upside from the current Rs 190 levels.

The optimism stems from a possible European post-war reconstruction boom and strong domestic demand.

Improving spreads, deleveraging, and an expected Rs 35 billion EBITDA uplift by FY27 are seen as key growth drivers.

SAIL Share Price Target

The brokerage has also upgraded SAIL to ‘ADD’, setting a target price of Rs 158, implying 20–25 per cent upside from current levels near Rs 130.

InCred cited the PSU’s fully integrated iron ore operations and cost advantage, supported by India’s protectionist policies, as major positives.

Stable pricing, steady margins, and volume growth make SAIL a defensive yet attractive pick in the metal space.