Top picks: ICICI Securities recommend these metal, mining stocks

The brokerage firm ICICI Securities is bullish on the metals and mining sector as HRC prices in traders’ market during the week ended 21st Dec’22 rose further by Rs500/te on an average led by the possibility of a price hike by major steel players in January-23. The research analysts of the broking firm have assigned buy call ratings on the shares of Jindal Steel, Jindal Stainless Steel, SMEL and APL Apollo.

“HRC price in traders’ market rose by an average of Rs500/te (similar level as compared to last week) to Rs55,100/te in anticipation of a possible price hike by major players to the extent of Rs750-1,000/te. Besides, our channel checks suggest that the hike of Rs500/te on average in coated steel prices taken by major players on 20th December has been absorbed in the market. At current level, domestic HRC price is at a slight premium to the landed cost of imports from South Korea; however, our channel checks indicate that imports are not being incrementally booked. Prices in longs market continue to rise. Secondary rebar prices rose further by Rs1,500/te on higher iron ore and pellet prices,” said the research analysts of ICICI Securities.

“We would keenly watch out for any policy announcement from Chinese authorities, prior to new year, which would be critical for outlook of commodities in general. We maintain our cautious view on ferrous space with JSPL (TP: Rs605) and Shyam Metalics (TP: Rs425) as our key picks owing to their long-heavy product portfolios,” it added.

The shares of Jindal Steel closed on Friday at ₹580.65 apiece on the BSE, down by 1.52% from the previous close of ₹589.60. The stock had touched a 52-week-high of ₹596.65 on and a 52-week-low of ₹304.20.

While, Jindal Stainless Steel closed on Friday at ₹239.15 apiece on the BSE, up by 6.03% from the previous close of ₹228.60. The stock had touched a 52-week-high of ₹242.50 on and a 52-week-low of ₹95.05.

While, APL Apollo closed on Friday at ₹1,093 apiece on the BSE, up by 2.10% from the previous close of ₹1116.45. The stock had touched a 52-week-high of ₹1193.85 on and a 52-week-low of ₹771.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.