JP Morgan has adjusted its price targets across the metals sector, reflecting weaker volumes and tighter spreads. Here’s a breakdown of their latest analysis:
Key Highlights:
- Safeguard Duty Impact: The introduction of safeguard duties on steel imports could provide a competitive edge to JSW Steel and Tata Steel.
- Karnataka Minerals Tax: Clarity is awaited on the tax impact on iron ore mining in Karnataka, which could affect industry operations.
- Hindalco’s US Business: The profitability outlook for Hindalco’s US operations in FY26 is under observation, signaling potential headwinds.
Revised Price Targets:
- JSW Steel (Top Pick):
- Rating: Maintain Overweight
- New Target Price: ₹1,010 (from ₹1,065)
- Coal India:
- Rating: Maintain Neutral
- New Target Price: ₹435 (from ₹470)
- Tata Steel:
- Rating: Maintain Overweight
- New Target Price: ₹155 (from ₹170)
- Hindalco Industries:
- Rating: Maintain Overweight
- New Target Price: ₹435 (from ₹470)
Sector Outlook:
JP Morgan remains cautious about the metals sector due to ongoing challenges such as subdued demand and pricing pressures. However, strategic policy measures, such as the safeguard duty, may provide relief to domestic producers.
Disclaimer: This article is for informational purposes only. Please consult your financial advisor before making any investment decisions
