Emkay Global has expressed a positive outlook on the steel sector, citing a mid-cycle recovery that could benefit major players. The brokerage has issued a Buy rating on Tata Steel with a target price of ₹185, while maintaining an Add rating on JSW Steel with a target price of ₹1,100.
Emkay believes that non-ferrous metals offer better risk-reward compared to ferrous metals in the current market cycle. While steel demand and margins are expected to improve, the brokerage prefers companies with exposure to non-ferrous metals, given stronger long-term fundamentals in that segment.
With sectoral tailwinds and improving demand dynamics, Emkay anticipates selective opportunities within the steel and metals space, while maintaining caution on ferrous metal stocks.
(Disclaimer: This article is for informational purposes only and does not constitute financial advice.)