Metal Stocks to Buy: JM Financial suggests Tata Steel, JSW Steel, 8 other scrips; note down targets

Due to several reasons like surge in steel prices, new import duty, cost of using coking coal, the industry is likely to grow in the next years, according JM Financial analysts.

However, the brokerage also highlights some challenges for the domestic steel firms as follows:

Iron ore prices are still high. Steel demand dropped by 9 per cent in April due to seasonal factors Globally, steel prices are weak, especially in China, where exports have increased sharply that can puts pressure on international prices.

The import duty has helped reduce the price gap between Indian and Chinese steel. If the government raises the duty further (possibly to 24 per cent), it could give more support to Indian steelmakers, the brokerage said.

The brokerage has recommended major steel firms' stocks for long term, here is the list:

Analysts recommends buying Tata Steel shares for a target of Rs 180.

The brokerage has recommended buying JSW Steel shares for a target of Rs 1,170.

JM Financial bullish on Jindal Steel And Power Ltd (JSPL) shares for a target of Rs 1,020.

Analysts recommend buying Shyam Metallics shares for a target of Rs 900.

JM Financial suggests buying Welspun Corporation shares for a target of Rs 980.

The brokerag has a 'buy' stance on Hindalco Industries shares with a target of Rs 800.

Analysts suggests buying Hindustan Zinc shares for a target of Rs 530.

The brokerage recommends buying Kirloskar Ferrous shares for a target of Rs 610.

JM Financial's analysts is bullish on Lloyds Metals and Energy shares with a target of Rs 1,610.

The brokerage recommends buying Jindal Stainless shares for a target of Rs 720.

(Disclaimer: The views/suggestions/recommendations expressed here in this article are solely by investment experts. Zee Business suggests its readers consult their investment advisers before making any financial decision.)